GOLD FEVER IN CHINA, SIGNAL OF THE WEST FINANCIAL MELTDOWN |
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China seems to be broken for months the gold fever. According to data from the World Gold Counsil on earth there are 165,000 tons of gold mined throughout the course of human history, to have an exact idea of how little the amount of gold existing, suffice it to say that all the gold the world would come into a room 20 feet long, 20 meters wide and deep always another 20 meters, or a cube. It is, therefore, the rarity of gold to make this great good. In recent years, China i s experiencing a fast economic growth and hyperbolic, so that in 2010 became the second largest economy in the world and within a few years become the world's leading economy, surpassing the United States. Obviously, China's economic growth is also reflected in the consumption of gold.Also according to the World Gold Council, in the course of 2010 the demand for gold in China was 579.5 tons, more than double that of the U.S., reached 233.3 tons. As reported by Forbes, 25% of world production of gold ends up in China. It is among the precursors who walked down the street by a decision of the increase in gold reserves of its central bank. China Since 2007, the year that has passed South Africa, is the world's leading producer of gold and over the last year registered a record production of 340 tons. Though, is now the world's leading producer of gold, the huge domestic demand in 2010 has increased imports of five times compared to 2009. During the first months of 2011, the Gold Rush had a strong surge, when you consider that the Industrial and Commercial Bank of China sold about 7 tons of gold bullion, 15 tons against the entire 2010.
Why China has a real fever for gold? It is not easy to answer, but you can make some assumptions. First, it could protect its investment, diversifying the use of excess cash generated by exports pyramid. So far, the main investment was represented by dollars and by the titles of the UnitedStates government debt paper. In fact, China has the world's largest reserves of dollars, more than 2,800 billion, in addition to being the country that has the highest proportion of U.S. public debt (other always 1.16 trillion dollars).Another possible explanation for this accumulation of gold would be for the need to protect themselves against the strong increases in agricultural goods. There are also other hypotheses, even disturbing. China wants to impose on the world as the world reserve currency yuan, its currency, instead of or parallel to the dying dollar. For this purpose it is necessary that, besides the driving force of its economy, both rispaldata, guaranteed and protected as well by gold. If China decided to accelerate the growth of their reserves in gold, as a necessary step to internationalize the yuan, we can well expect a substantial leap up the price of gold. According to various sources we are going at a fast pace towards this scenario. For example, Chuck Butler, President of Ever Bank, provides that the gold in the coming years could reach $ 5,000. The last hypothesis, the most disturbing is that the gold in Beijing Feb. is dictated by the certainty that we are on the eve of another global financial earthquake. All countries and major Western economies are highly indebted industrial and their debts are virtually untenable, unpayable. China diagnostics and predicts what is to all intents and purposes the "collapse of Western", and runs for cover to protect against this possible and imminent global financial crisis. We are on the eve of the Great Depression, momentarily overcome in the years 2008 and 2009 with large transfers of public money to banks and companies in crisis?
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