Despite holding the position of largest gold producer in the world, China's gold imports have also increased fivefold in the first 10 months of this year. This, per a recent Bloomberg article.
While the rest of the world has embraced money-printing, recent data confirms China's insatiable appetite for gold is growing by the minute. What do they know that we don't? Answer: Nothing!! The difference is they are acting on on their beliefs and for the most part, we have our heads in the sand.
The Chinese Government, reportedly tells its citizens to use part of every paycheck to own more gold. In stark contrast, here in the U.S., it's all about consumer spending. Spend your way to wealth or save your way to financial freedom. Those are your choices.
Confirmation of this growing Chinese gold demand provides some explanation as to why gold prices are rising irrespective of recent dollar strength. The Chinese look at dollar strength as an opportunity to buy. Frankly, if this continues, we could quickly find ourselves in the midst of another gold coin shortage. See a recent article by Peter Giordano, suggesting there may not be enough gold to go around when the gold rush really starts.
Arguably, everything has its price but as Giordano points out in another article, In a really bizarre moment in history, a single American dollar was actually worth 4.2 trillion German marks. As we print more and more money, one has to believe the dollar will, one day, have its own bizarre moment in time. Only this time it may be the Chinese Yuan that holds point as the world's dominant currency.
Wherever gold and the dollar are headed, it may not take much to drive the gold price to unimaginable highs. According to one model, just a 1% shift in U.S. household financial assets, into gold, could move $422 billion out of equities, mutual funds, bonds, pension funds etc. and into gold. It is estimated that alone could drive the price of gold to $4769 an ounce. See article.
Such a 1% shift could take place in a relative blink of the eye and may not even register on the major stock indexes. Even a 2% shift could occur with little fanfare until it hits the gold market. Then all heaven could break loose and the gold price could run to crazy highs as the world joins China in the chase for more gold.
If you want to get a head start in the race for gold, visit LearCapital.com for breaking news, real time gold prices and a multitude of Free Special reports showing why now may be the best time ever to own gold.