How China is Banking on Gold

Posted by on January 19th 2012 in CFTC, China, Federal Reserve, Gold, India, JPMorgan, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

As the Wall Street Journal reports that “The Chinese have been loading up like never before on gold ahead of the Lunar New Year, which falls on Jan. 23 this year,” a Reuters analysis looks at how Chinese banks are encouraging gold buying.  Headlined “China’s banks lure man on the street to gold,” it cites one bank that has signed up more than 2 million customers under a program with the World Gold Council that was launched in 2010. Investors “buy as little as a gram a month through the accounts, a tiny quantity but one that adds up when the middle class of the world’s most populous country is involved.”  The article also notes that “China has one of the world’s highest saving rates, and the public faces few investment options. A volatile stock market and a property market under government crackdown are driving investors to seek alternative investment choices.”

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