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What do you all make of this ?

edmundfitzgeraldedmundfitzgerald Posts: 4,306 ✭✭
in Precious Metals
How do you interpret China's government encouraging its citizens to buy silver and gold. I know this isn't a new story, but
I'd like your reaction to why you think they're doing it.

Comments

  • OPAOPA Posts: 17,119 ✭✭✭✭✭


    << <i>How do you interpret China's government encouraging its citizens to buy silver and gold. I know this isn't a new story, but
    I'd like your reaction to why you think they're doing it. >>



    Because they're smart .. Once they own a majority of the worlds gold ... they become numero uno and will hold most of the trump cards and overtake the US as #1. Just history repeating itself ..
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • VikingDudeVikingDude Posts: 1,342 ✭✭✭
    They have their citizens buy all of the gold/silver they can and then the gov't will turn around and confiscate it.
  • calleochocalleocho Posts: 1,569 ✭✭
    Even after all the wage increases that China has had of late ...an average worker might make 300 bucks a month.

    lets say they manage to save 1/3 of it ...a 100 bucks. ...now lets say they diversify and go 20% with gold and silver...that would be about 20 dollars per month.

    Granted they have lots of people ..but i think its fair to say that the "working" class of China will NOT have an impact on gold's price.







    "Women should be obscene and not heard. "
    Groucho Marx
  • JustacommemanJustacommeman Posts: 22,847 ✭✭✭✭✭


    << <i>Even after all the wage increases that China has had of late ...an average worker might make 300 bucks a month.

    lets say they manage to save 1/3 of it ...a 100 bucks. ...now lets say they diversify and go 20% with gold and silver...that would be about 20 dollars per month.

    Granted they have lots of people ..but i think its fair to say that the "working" class of China will NOT have an impact on gold's price. >>



    Not sure how to answer the OP's question. What was the US Goverments reason to open back up the gold window and make it legal to own gold again? Maybe the same reason in China?

    China's Central Bank will have the greatest impact of course. China does have a growing middle class. The factory worker as calleocho pointed put won't make a dent imo. MJ
    Walker Proof Digital Album
    Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
  • CaptHenwayCaptHenway Posts: 32,127 ✭✭✭✭✭


    << <i>They have their citizens buy all of the gold/silver they can and then the gov't will turn around and confiscate it. >>



    Always a possibility.
    TD
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • WeissWeiss Posts: 9,941 ✭✭✭✭✭
    We (Americans) can't really grasp China yet.

    You remember Shawshank Redemption? Time and pressure?

    Depending on who you ask, there are a billion three to a billion five Chinese.

    There are a million millionaires in China and the number is surging. Within 20 or 30 years, the Chinese middle class will have purchasing parity with the US middle class--except there will be a billion of them. Maybe more. How many will there be in 5 years? 10 years? Pressure and time.
    We are like children who look at print and see a serpent in the last letter but one, and a sword in the last.
    --Severian the Lame
  • edmundfitzgeraldedmundfitzgerald Posts: 4,306 ✭✭
    7/8/2010




    Gold demand in China, the world's second-largest consumer, gained in the first half as government measures to cool the property market and falling equities spurred investment demand, the Shanghai Gold Exchange said.


    The total volume of gold traded on the exchange jumped 59 percent in the first six months from a year earlier to the equivalent of 3,174.5 metric tons, said Song Yuqin, vice general manager at the exchange. Silver turnover soared more than fivefold, Song told a conference in Beijing today.
  • cohodkcohodk Posts: 19,105 ✭✭✭✭✭
    There are many very wealthy Chinese. They will buy gold and silver. There are a billion+ very poor Chinese. They will not buy gold or silver.

    So what if they buy it? I say let the Chinese own it all. If they are the only ones who own it, then it would infer that no one else wanted it--thats why they sold it. So if only one entity wants it, then what is it really worth? Gold was worthless until the Egyptians thought it gave them supernatural powers. IE, religion.

    China should be building farms instead of factories. Maybe when China gets hungry they would trade their yellow metal for our yellow corn.



    Gotta love the smell of carbon in the morning.


    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • CaptHenwayCaptHenway Posts: 32,127 ✭✭✭✭✭
    Speaking of our China policy:

    link
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • renman95renman95 Posts: 7,037 ✭✭✭✭✭
    They know US paper will be worthless so the citizens are proxy buyers for the ChiComms, IMHO.
  • BBNBBN Posts: 3,761 ✭✭✭
    They probably know that we won't make good on our debts. The citizens buy up the gold so China confiscates it from their people to recoup whatever they can.

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  • BBNBBN Posts: 3,761 ✭✭✭
    Then again, could we see a gold confiscation in our future to try to make good on all that debt to foreign nations?

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  • dino2008dino2008 Posts: 341 ✭✭
    If they try to confisticate mine........there's gonna be TROUBLEimage
  • PerryHallPerryHall Posts: 46,122 ✭✭✭✭✭


    << <i>Then again, could we see a gold confiscation in our future to try to make good on all that debt to foreign nations? >>



    Not likely. In any event, there is no way that Americans would tolerate the government theft of our gold.

    Worry is the interest you pay on a debt you may not owe.
    "Paper money eventually returns to its intrinsic value---zero."----Voltaire
    "Everything you say should be true, but not everything true should be said."----Voltaire

  • KCCKCC Posts: 129


    << <i>They know US paper will be worthless so the citizens are proxy buyers for the ChiComms, IMHO. >>



    This echoes the first thought that popped into my head.
    -Ken
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