It is no secret that China has been buying and stockpiling gold. Although estimates of China’s total holdings of the yellow metal are the subject of speculation, one thing seems obvious: China wants to continue to accumulate more gold as it takes its place among the global economic elite.
We suspect that China’s appetite for gold is not likely to abate anytime soon, and apparently others agree with our assessment.
In a recent article featured on Kitco.com, Simona Gambarini, a commodities economist at Capital Economics, said that Chinese gold imports are up nine percent so far this year, ‘suggesting that China’s appetite for gold has remained robust.”
Dips in the price of gold have the ability to attract serious buyers, and the recent declines to sub-$1300 per ounce levels may fuel further buying interest.
Gambarini also stated “Chinese consumers tend to be very sensitive to changes in price and the recent fall in the gold price below the $1300 per ounce level has probably stimulated buying activity. We expect China’s demand to strengthen in the remainder of the year as gold buying normally accelerates ahead of the Chinese New Year.”
If the world’s second largest economy sees fit to buy and stockpile physical gold, shouldn’t you?
The bargain hunting often seen in gold on any significant price dips is in our view simply another powerful example of how the yellow metal is acquired over long periods of time at varying price levels. In other words, large buyers of physical gold are essentially dollar-cost averaging their purchases.
If the largest buyers of physical precious metals see fit to buy gold at different levels and on significant declines, shouldn’t you consider a similar approach?
After all, in our opinion it is not simply just a matter of how much gold may potentially appreciate in price, but rather more a matter of how many ounces you may potentially acquire.
It has been made crystal clear time and time again that the most powerful financial institutions on the planet understand the value of gold and seek to buy and hold the yellow metal.
Obviously, logic would tell us that there must be some solid reasons for this. You can use this knowledge to your own advantage, or ignore it at your own peril.
The choice is yours.
If you see the wisdom of holding real, physical assets that can potentially provide a meaningful hedge against a number of economic and geopolitical issues while also having the potential for significant price appreciation, do not wait to act.
Speak with an Advantage Gold account executive today about the potential benefits of physical precious metals ownership. Our precious metals professionals can answer your questions and show you the easiest way to begin building a precious metals portfolio.
Don’t wait for the next financial crises or stock market collapse before exploring your options. Learn more about physical gold and silver ownership today. All you have to do is pick up the phone and call us at 1-800-341-8584 to get started.Tags: advantage gold, china, chinese new year, gold, gold reserves, stockpiles