China Gold Market
Even though China is tightening their money supply some, according to the Far East managing director of the World Gold Council, Albert Cheng, it will have little effect on the gold market or gold demand..
The reasoning behind Cheng's assertion is the Chinese market doesn't have investment vehicles like exchange-traded funds, so they aren't a factor in that market.
Consequently, the Chinese market for gold is driven by retail investors and consumers, and the majority of them want to include gold as a part of their investment portfolio in order to maintain their wealth.
For China itself, they've been steadily increasing the amount of gold holding they have in the country, up to 1,054 tons now from the approximate 600 tons they had in 2003.
While they are getting a little more investment savvy and didn't bite at the offer from the IMF to acquire about 191.3 tons of gold, it is suspected they continue to buy behind the scenes.
China Gold Market
Showing posts with label China Reserve Ratio. Show all posts
Showing posts with label China Reserve Ratio. Show all posts
Thursday, February 25, 2010
Thursday, January 14, 2010
Commodities: Oil Prices Drop on Warmer Weather
Warmer Weather Drives Oil Prices Down
Cold weather has been driving the price of oil, and that seems to have come to an end for now, at least until another possible cold trend comes through in February.
If you can trust those forecasting the weather, the next month should be a much warmer one, and that should have a major impact on the price of oil during that time, as it should drop after running up for some time as the cold weather continued to linger.
With China's central bank increasing its reserve ratios, it's hard to tell if that's a statement that they're going to cut back on commodity imports at this time, as in 2009 they grew by about 56 percent for the year.
With that combination, we again, would see significant downward pressure on light sweet crude over the next month. Other energy sectors and gas should also have a similar price movement.
Warmer Weather Drives Oil Prices Down
Cold weather has been driving the price of oil, and that seems to have come to an end for now, at least until another possible cold trend comes through in February.
If you can trust those forecasting the weather, the next month should be a much warmer one, and that should have a major impact on the price of oil during that time, as it should drop after running up for some time as the cold weather continued to linger.
With China's central bank increasing its reserve ratios, it's hard to tell if that's a statement that they're going to cut back on commodity imports at this time, as in 2009 they grew by about 56 percent for the year.
With that combination, we again, would see significant downward pressure on light sweet crude over the next month. Other energy sectors and gas should also have a similar price movement.
Warmer Weather Drives Oil Prices Down
Wednesday, January 13, 2010
Commodity Currencies Fall China Reserves Ratio Announcement
China Reserves and Commodity Currencies
After China announced it would be tightening up its reserve requirements for its banks, commodity currencies across the globe fell in value in response to the possibility China demand could slow down, which would hinder what small hope of a minimal economic recovery there is at this time.
The central bank of China said in a statement yesterday that the required reserve ratio would be increased by half a percentage point starting next weak, an obvious action showing China is going to tighten up their monetary policy.
Nations with strong links between their currency and commodities had their currencies hit lows against the U.S. dollar as a consequence of the announcement, which could dramatically influence their value for the year. The Australian, New Zealand and Canadian dollars were especially impacted by the news.
What's interesting about all this, is China seemed to be surging forward on increasing its commodity stocks for 2010, as December imports had increased by 56 percent for 2009, and commodity exports in December grew by a solid 17.7 percent, seeming to imply they were importing commodities based on consumer demand for products.
Even so, in general, commodities are expected to do well this year, but it seems those estimations have been based upon the idea we are actually in a real recovery something in my thoughts is far from being proven as a reality.
China Reserves and Commodity Currencies
After China announced it would be tightening up its reserve requirements for its banks, commodity currencies across the globe fell in value in response to the possibility China demand could slow down, which would hinder what small hope of a minimal economic recovery there is at this time.
The central bank of China said in a statement yesterday that the required reserve ratio would be increased by half a percentage point starting next weak, an obvious action showing China is going to tighten up their monetary policy.
Nations with strong links between their currency and commodities had their currencies hit lows against the U.S. dollar as a consequence of the announcement, which could dramatically influence their value for the year. The Australian, New Zealand and Canadian dollars were especially impacted by the news.
What's interesting about all this, is China seemed to be surging forward on increasing its commodity stocks for 2010, as December imports had increased by 56 percent for 2009, and commodity exports in December grew by a solid 17.7 percent, seeming to imply they were importing commodities based on consumer demand for products.
Even so, in general, commodities are expected to do well this year, but it seems those estimations have been based upon the idea we are actually in a real recovery something in my thoughts is far from being proven as a reality.
China Reserves and Commodity Currencies
Subscribe to:
Posts (Atom)