louboutin pas cher China Invests In Gold

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Although being the largest gold producer in the world, China does not seem interested to sell its amount of precious metal abroad. It would rather keep it for itself, investing heavily in it. Only last year, for instance, it [link widoczny dla zalogowanych] bought 454.1 tons of gold from its internal production. This accounts for China ranking the sixth among the largest gold bullion owners across the world.
The explanation lies of course in the as huge domestic demand. Only the demand for gold bullion bars increased by a significant 44%, the Chinese investors perceiving gold products as more reliable than currency, in terms of gain. But if the national demand represents an impressive [link widoczny dla zalogowanych] 18.7% of the international demand, this is also because of normal citizens (1.3 [link widoczny dla zalogowanych] billion - to be exact!) that are great gold consumers. The [link widoczny dla zalogowanych] WGC forecasts a double consumption in this country over the next decade. Still, both retail investors and private households are only the tip [link widoczny dla zalogowanych] of the iceberg. In [link widoczny dla zalogowanych] fact the greatest gold investor is the government itself.
Faced with the poor international economic situation and with its particular needs in the context, the Chinese government invests heavily in gold as both a long-term and a short-term solution. On the one hand, it is highly exposed to the [link widoczny dla zalogowanych] American dollar because it has got a lot of dollars as the 'banker' of the huge American debt, by hoarding a large number of [link widoczny dla zalogowanych] that country's governmental bonds. On the other [link widoczny dla zalogowanych] hand, as a massive trader to the [link widoczny dla zalogowanych] same country, it has to do something with its trade surplus as well.
As to why [link widoczny dla zalogowanych] choosing gold, that's easy to answer. If you expect currencies to weaken, especially the dollar (and the huge US debt makes that more than likely), you turn to [link widoczny dla zalogowanych] gold. Both people and governments seem to do that in times of crisis. If indexing the gold price [link widoczny dla zalogowanych] to the one in 1900, you will notice [link widoczny dla zalogowanych] that [link widoczny dla zalogowanych] its value hasn't changed much, unlike of any other currencies.
Under these circumstances, China invests in a stable asset, 'grown' cheaply enough at home. While by doing this, it may substantially contribute to the increase in the gold demand and price, by hoarding likely to devalue currency it could collapse, remaining without a financial safety net. What would you choose?