Chinese Consumption of Precious Metals is Dramatically Going Up

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Why The Chinese Will Cause A Silver BoomDid you know that China holds the most investment seminars and summits focused on Gold and precious metals in the world? And you think only Wall Street is after the money!

Beijing, Shanghai and other big Chinese cities now play host to more Bullion and precious metals investors and analysts these days than any where else, all focused on the big potential that China has for the global metals market.

Every major investor is banking on the boom in gold, silver, platinum, palladium and other commodities in China.

Investors Love Commodities in China

China’s commodity industry is the largest investment sector in the booming dragon land these days..

The Chinese government has recently taken steps to give its citizens more freedom to buy and hold gold and since the Chinese people are some of the most aggressive savers in the world, this will surely be felt in the gold markets as they begin snatching it up.
With 300 million people in the Chinese middle class this is especially significant … when you consider the average savings rate in China is 30 to 40%! That’s a lot of buying power.

By the way the savings rate in the US, is close to zero!

Chinese Consumption of Precious Metals is Dramatically Going Up

China consumed 395.6 tones of gold in 2008 for jewelry and investment, reports the World Gold Council, or around 14% of global demand, up from 327.8 tones in 2007. In 2009, gold jewelry and investment demand in China is expected to reach 432 tones, compared with 422 tones from India.

Thus, this year, China will effectively overthrow India as the No.1 gold consumer in the world.

The People’s Bank of China has also been going all out to mop up gold reserves. Lately China announced that the country had increased its gold reserves by 454 tones to 1,054 tones over the previous six years. The news has been prompting bullion analysts to predict that China wants to become a super power not jut politically alone, but in gold reserves, mining and sales.

This push towards precious metals investment is significant and surprising when one considers that private ownership of gold in China was forbidden until very recently.

Gold and silver’s traditional role as a safe haven asset in times of economic instability has been considerably enforced during the financial turbulence, and the ongoing economic uncertainty becomes the most effective motive for the rise of gold prices.

China is hot. Investors are hot on China. Commodities are hot in China, and nothing is hotter than gold.

China is Now The Second Largest Economy in the World

This will likely bring more wealth (and buying power) to its citizens. Gold and silver investors will be happy as their holdings increase nicely in value. In fact, China just introduced silver bars for investment. The state-run China Central Television (CCTV) is running a campaign encouraging the population to invest in gold & silver.

Real gold and silver investing has just begun in China.

The government recently created the Shanghai Gold Exchange, to allow anyone to trade gold, on the open market, without government interference.

Inflation is Coming and There Isn’t Any Way Around it

The policies that pulled us out of the recent economic crash put trillions of new dollars into circulation. That makes all of our existing dollars worthless, but it increases the value of copper, oil, and especially gold and silver.

China, the largest foreign-owner of US government debt, fears it holdings may become totally worthless if the dollar fails and is turning to what Greenspan has called the “ultimate source of payment”: precious metals.

The Chinese know what’s coming and now they’re warning their citizens to take action by urging them to buy physical gold and silver.

Analysts say that silver has been strongly undervalued in recent years. They add that the metal is the perfect investment for individuals and could be a fantastic way to cash in. Not long ago Michael Maloney, one of the top silver financial investors called silver cheap as dirt.

It’s time to protect your hard earned money. Click here and find out how easy it is to invest in silver now.

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