Chinese Consumers Driving Gold Train

Posted by on February 27th 2012 in Bailout, China, Federal Reserve, General Economy, Gold, IMF, India, Monetary Policy, Short Sellers, Silver, Wall Street | Be the first to comment!

Following a mid-January report that China’s consumer sector is growing faster than the overall economy, the Los Angeles Times, in a lengthy article, looks at how those consumers are impacting gold sales:  “China is now bedecking itself in bling. It’s on track to become the globe’s largest consumer of gold as early as this year, knocking off India— whose elaborate wedding dowries kept it on top for years. Some of the gold is going to its central bank as the government quietly boosts reserves. But the biggest driver is Chinese consumers. They’re snapping up jewelry, coins and bars as a hedge against inflation and to flaunt their rising wealth.”

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