| > And you believe that in an economic crisis, people are going to want to buy these things? Gold is obviously more common in some cultures, and could be used for trade if paper money swings wildly. For example, a kilo of gold (32.15 troy ounces/$86k) is not an uncommon incentive gift from real estate developers in China when purchasing properties, to offset variations in costs and pricing. However, in the US, my observations have been the gold buyers are looking for an easy buck. China is very different. People in China are buying "beans" of gold for $87. Chinese consumers have fewer investment options that are secure, and real estate investments are less favorable now. "...there is a growing sentiment that the gold market is governed no longer by economic factors but by the whims of Chinese buyers and investors. “China is unquestionably driving the price of gold,” said Ross Norman, chief executive of MetalsDaily.com, a precious-metals information platform based in London. “The flow of gold to China has gone from solid to an absolute torrent.”" Another interesting quote: "When China increased its gold holdings in the past, it bought domestically using renminbi, said Guan Tao, global chief economist at BOC International in Beijing. But this time, he said, the bank is using foreign currencies to buy gold — effectively reducing its exposure to the U.S. dollar and other currencies." China is one of the largest foreign holders of US treasuries. It may be trying to gradually dump them while preserving the value of the bonds. https://archive.is/hvKoa |