In the midst of the current market correction in the price of gold
bullion, a Japanese pension fund, Okayama Metal & Machinery, is
going to place 1.5% of its total assets ($500 million) in gold
bullion-backed exchange-traded funds (ETFs) (source: Financial Times,
May 16, 2012).
This is the first time ever this pension fund is buying gold.
China trumps India to lead oriental gold rush
ASIA BRIEFING: There are strong cultural and religious reasons why India has traditionally been the world’s biggest buyer of gold, but China is poised to overtake the subcontinent this year as its biggest source of demand.
Between them, China and India account for more than half of all the gold bought globally.
Inflation fears and a dearth of useful investment outlets means China looks set to be the biggest buyer of gold in 2012. (Source: IrishTimes.com)
With Europe undergoing stress due to sovereign debts and the US dollar's long term outlook grim, China is making its moves to become the world's biggest buyer of gold.
It is now known that last year, China had bought and imported large amounts of gold through Hong Kong, dramatically increasing its gold reserves. With recent dips in gold prices, China again stepped up its purchase of the gold bullion adding more to its reserves.
It is no longer a secret that China intends to back its currency, the yuan, with gold much like what the Swiss once did with their franc. With gold backing, China is one step closer to making its yuan an international currency. At the same time, China is also encouraging its citizens to buy gold. While concomitantly, the US seems bent on devaluing the dollar. When the dollar devalues there is the risk of inflation.
What will happen to our savings with continuing low interest rate and increasing inflation? Should we also buy gold?
This is the first time ever this pension fund is buying gold.
China trumps India to lead oriental gold rush
ASIA BRIEFING: There are strong cultural and religious reasons why India has traditionally been the world’s biggest buyer of gold, but China is poised to overtake the subcontinent this year as its biggest source of demand.
Between them, China and India account for more than half of all the gold bought globally.
Inflation fears and a dearth of useful investment outlets means China looks set to be the biggest buyer of gold in 2012. (Source: IrishTimes.com)
With Europe undergoing stress due to sovereign debts and the US dollar's long term outlook grim, China is making its moves to become the world's biggest buyer of gold.
It is now known that last year, China had bought and imported large amounts of gold through Hong Kong, dramatically increasing its gold reserves. With recent dips in gold prices, China again stepped up its purchase of the gold bullion adding more to its reserves.
It is no longer a secret that China intends to back its currency, the yuan, with gold much like what the Swiss once did with their franc. With gold backing, China is one step closer to making its yuan an international currency. At the same time, China is also encouraging its citizens to buy gold. While concomitantly, the US seems bent on devaluing the dollar. When the dollar devalues there is the risk of inflation.
What will happen to our savings with continuing low interest rate and increasing inflation? Should we also buy gold?
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