Gold Bullion Demand In ‘Chindia’ Heading Over 2,000 Metric Tonnes Again

Koreans, nervous about the fallout from the crash in China’s stock market, are choosing to diversify into gold and take advantage of lower dollar prices.

This trend is likely to be repeated across east and south-east Asia in countries who are reliant on the increasingly important Chinese economy.

Quarterly Gold Supply 2010-2015

 

While it is unlikely to have significant impact on global demand – last year’s demand from South Korea amounted to only 17 tonnes – it demonstrates the psychological appeal that gold still has in times of economic crisis among people across the world – and especially in Asia.

The triumphalism with which some Wall Street commentators have covered the temporary set-back in gold prices looks misplaced and misguided. This is especially the case when the bigger picture is taken into account – including the significant macreconomic, systemic, geopolitical and monetary risks of today.

These are being ignored for now – as they were in 2007 and early 2008.

Gold will continue to retain value well into the future – a claim we would not be too confident about making with regards to paper currencies and bonds issued by the most indebted nations in the world.

This article is brought to you courtesy of Goldcore which appeared on ZeroHedge.

Pages: 1 2

Leave a Reply

Your email address will not be published. Required fields are marked *