Gold is not just a metal used in jewellery; it is also a commodity that possesses the attributes of currency. It is also a financial commodity, besides being just a general commodity. There are lot of investment activities related to gold, mainly because it is a solid investment. Gold has always been considered to be an indispensable investment tool.
In the past few months, it has been observed that the Chinese government is encouraging people to invest in gold and silver as much as they can. The idea of buying gold and silver is being promoted on a large scale to the public. In China, the opportunity for investing in silver bullion was introduced just this year, and this was the first time ever for such a thing to happen.
While there were strictures in China on holding precious metals for investment purposes, this stricture now appears to have been totally relaxed. This tends to make the situation different from what it was a few years ago, when there was strict control on the distribution of gold and silver as an investment option.
The trends of buying gold have been observed in the Chinese; so, there is at least market stimulation because of the buying. The Chinese economic ambassador is of the view that the credit in the country is too loose and there also appears to be a bubble in the housing market as well as the stocks; and it is because of all these reasons that the Chinese are investing in gold and silver. In view of the ambassador, investment in precious metals like gold and silver offers protection from any kind of credit bubble collapse.
The endorsements by the government for the people to start buying gold and silver were also shown on the state sponsored television. The investments of the people in gold and silver on such a large scale means that the already high prices of gold and silver would not be allowed to go down significantly.
While encouraging the people to invest in gold and silver, every bank is going to have bars of both the metals in four different sizes for the individuals. With this, the investments in gold have already been observed to be soaring. The Chinese, who used to be the nation with the lowest per capita gold consumption, are now going to be converted into a nation that makes investments in precious metals.
In addition to investments in gold and silver bars within China, the Chinese investors are now also able to do gold trading in London. This is made possible by swiping a Lucky Gold Card. Considering this fact it appears that the Chinese are fast getting hold of a considerable amount of gold, which is considered to be a store of wealth.
It is not just gold that is a store of wealth, but silver is an industrial metal, which is sometimes considered to be bigger in terms of investment, and is sometimes also viewed as a monetary metal.
Source by Jack Wogan
Chinese Government Recommends Investing in Gold and Silver
No comments:
Post a Comment