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Robust Gold Demand From China Underpinning Global Market
Posted February 11th, 2014
TANGIBLE INVESTMENTS - Laguna Beach - Gold prices continue to climb amid increasing concerns that the U.S. economy may be losing traction.Investor unease has pushed the Gold price above the 100-day moving average and to a three month high of $1,290.48 an ounce. “Emerging-marketcurrency weakness and safe-haven buying have been driving forces behind the recent strength in precious metal prices,” says optionsXpress. “While recent economic data has not (been) bad enough for traders to hit the panic button, it has been soft enough for investors to quietly buy up metal.”
In Asia, that is precisely what investors are doing, China's gold consumption soared 41.36 percent last year, according to the China Gold Association(CGA). China most likely surpassed India as the world's largest Gold consumer because not only did imports soar in 2013 to 1176 tons, but goldproduction also rose 6.2 percent to 428 tons. Analysts are predicting that demand for gold bars and jewelry will continue to rise for the next three to five years as incomes across China increase.
Meanwhile, the nearly 500 ton difference between import/production and consumption data has some believing that the Peoples Bank of China (PBoC) has been surrupticiously building it’s gold reserves, despite official reports to the contrary. The PBoC recently reported gold reserves of just 1,054 tons, that is the same amount claimed in April 2009, but no one actually believes China has stopped its accumulation of gold.
In Washington, there was a surprising development in Congress today when House Speaker John Boehner of Ohio announced that the House will vote on Wednesday to raise the U.S. debt limit without any conditions attached. It was the debt ceiling crisis in 2011, that preceded Gold setting the all-time record high of $1,920 an ounce. Treasury Secretary Jacob J. Lew said last week that the nation won't be able to pay its bills beyond Feb. 27.
It's important to protect your hard earned wealth during these times of economic uncertainty,and at Tangible Investments, it doesn't matter if you're new to precious metals or a seasoned veteran, you will always be dealing with top industry experts. Take a minute and browse our large selection of valuable collectibles then call Toll Free 1.800.741.5014 today and let our staff at Tangible Investments assist you in your next purchase. Have you claimed your Free Coin yet?
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