Guest Post: Is The Gold Price Dependent On China?
January 19, 2013 - 1:04pm
Submitted by John Aziz of Azizonomics blog, China now buys more gold than the Western world: Does that mean, as some commentators are suggesting, that future price growth for the gold price depends on China? That if the Chinese economy weakens and has a hard landing or a recession that gold will fall steeply? There’s no doubt that the run-up that gold has experienced in recent years is associated with the rise in demand for gold from emerging markets and their central banks. And indeed, the BRIC central banks have been quite transparent about their gold acquisition and the reasons for it. Zhang Jianhua of the People’s Bank of China said: No asset is safe now. The only choice to hedge risks is to hold hard currency — gold. Indeed, this trend recently led the Telegraph’s Ambrose Evans-Pritchard to declare that the world was on the road to “a new gold standard”...
Continue reading this article »
Share This Article: