As gold prices hit new record highs, that hasn't deterred the Chinese government and individual Chinese investors from continuing to plow a lot of money into the yellow metal.
And the fact that retail jewelry built from gold has taken a hit has largely been shrugged off by the market, as that hasn't really been much of a factor ever in determing gold prices, especially in volatile economic times.
Consequently, investment in gold is the only driver of gold prices at this time, and with the economic conditions we face, there's no doubt gold prices will rise for many years to come, with occasional and obvious corrections as it goes along. But the curve will continue to be up with occasional dips in gold prices.
The Chinese government is also looking for places to place their money, and have been buying up large amounts of gold for some time, although with all of that, there's plenty of room for more, as at this time only about 1.6 percent of the china's forex reserves are held in gold.
Most Chinese believe their is significant upside to gold prices, and aren't going to cut back in their acquisitions of gold any time soon.
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