Gold will be back in action with a bang in 2012.Now many of my fellow friends will acclaim that I am opening up an old wine bottle. But the demand will come from many new emerging nations excluding the BRIC nations. China’s gold imports has spooked to 50 percent in October from September. The most shocking growth number is about the import made by china which soared to 4,000% from October of a year ago, to an all-time single-month record high of 85.7 tons. Now my friends will again claim me as lunatic to express that type of growth numbers. Its the real true number.
China is all set to rule the Gold market of the world. China will very soon soon-to-dominate the New York-London gold cartel. Currently, the majority of China gold reserves have been located in the United States and European countries. And this has lead Europe and US to suppress the real price of gold. Infact suppressed the price of gold from rising. Reason behind such an activity is want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Suppressing the price of gold is very beneficial for the U.S. in order to maintain the U.S. dollar’s to rule the world as an international reserve currency. So does this mean china is slowly planning to replace dollar with renminbi. Well china have been planning and working on this from a long term and it can be taken for believe that one fine morning they will do it just like they hold 60% of the U.S treasuries. Chinese imports of gold is about to hit 470-490 tonnes for the full year, up from last year’s 245 tonnes a near-double spike in volume anticipated at the close of 2011.China has spooked massive advertisements of its gold purchase and asking its citizens to convert their savings into gold from paper currency. As a result 1 billion Chinese consider buying gold as a hedge against inflation and to preserve values in a world where currencies can fall.
Gold Sell & Purchase might Begin.
Italy is having the worlds 4th largest reserves of gold at 2,452 tonnes. This is even more than France, and more than twice as much as China. Hence if Italy’s gold has a value of $123 billion enough to cover this year’s $80 billion budget shortfall. Portugal’s $19 billion in bullion is more to cover its $13 billion deficit. France has $122 billion worth of bullion, enough to make a massive dent in its $150 billion deficit. China might be the biggest buyer as it will try its all means to convert and shifts its $3 trillion dollar reserves into gold. At the moment, the richest Western countries, including the United States, Germany, Italy, and the Netherlands, hold between 60% and 80% of their entire reserves in gold. Where the reserve of Gold being held by China is 2%.Now this is not an misprint. Hence china has an fierce mind of competition which will exploit it to buy gold and increase its reserves.
Repeat of History.Get Ready...
In fact the world is going to witness another repeat of the history. When gold changes hands economic power also shifts. Like the one that happened century ago when plenty of that French, German and British gold ended up in the hands of the United States. We will be the part of the next biggest history which will be crated in this century. On the hand the world is set to dig more gold out of the earth. Now if we look into other emerging nations like Tanzania the land of South Africa. The government has requested mining firms in Tanzania to help in the creation of a gold reserve in the country. Now I am not an Financial Astrologer who will predict the Gold price. As an economist I can say only price will be worth by the purchaser hence all eyes on the Buyer.
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