China buying Gold hand over fist

The Chinese worried about a possible U.S. default are buying gold and silver hand over fist . The Chinese rush to Gold alarmed by the fear of the U.S. default , Gold is The traditional safe by excellence in times of uncertainty in the currency markets, with the extreme volatility of bank stocks and the fear of sovereign debt defaults (those whose bonds were issued by domestic banks are likely to become toilet paper, what the rating agencies often classify - wrongly - with the name junk) , a true 'gold fever broke among the Chinese investors, with a surge in sales of bullion coins by more than 120% in the first quarter of 2011 on an annual basis. A trend that has pushed up the prices of the yellow metal over the threshold of $ 1,600 an ounce. To drive the demand of the market towards the safe haven par excellence is also the debt crisis of the euro area and the situation far from rosy in the U.S., where the Congress has not yet reached an agreement on raising the debt ceiling with the risk of debt default for the country.

This is why China is focusing on gold. For some time China was a net seller of gold , as well as being a major producer. According to the World Gold Council (WGC), together with India, the country where the demand for gold recorded the strongest growth rates globally. The demand in China is extremely strong, and one of the main factors that drive the market's fears is the rising inflation. Data in hand, in the first three months of 2011 the demand for gold coins and ingots in China amounted to 90.9 tons, an increase of 123% compared to 40.7 tons in the same period last year. In India, sales stood at 85.6 tons. Globally, in 2010 the demand for bullion coins stood under 1,200 tons. According to analysts, the 'gold rush of the Chinese market is a new phenomenon. "Only a few years ago, the Chinese would not have bothered to buy gold bars and coins. But now people will buy them, instead of jewels, as they have a higher value over time . For the Chinese to buy gold is a kind of insurance, they feel they have made a safe investment. Currently, the gold reserves amount to only 1, 6% of the total assets of China, but analysts view it is possible that the Bank of China starts to buy more gold. Especially given the uncertainty related to yields on the US Treasury bonds issued by the Fed, on which China has invested for years because it was believed to be the best way to "park" the money arising from the huge surpluses of their trade balance.

China and India demand for gold and silver soaring

China and India are the largest silver marketplaces globally.Demand for gold from India , the world's largest buyer of the precious metal is projected to exceed 1,200 metric tons by 2020, according to the World Gold Council .In 2009, China bought more gold than India, making it the world's top consumer. China pipped South Africa in 2007 as the world's largest gold producer .Chinese demand for silver has quadrupled in 2010 .In 2010, China imported an unprecedented 14 percent of global silver as the demand for silver has been growing in the country. Till last year, China has been historically been a net exporter of silver. China is the largest gold producer but requires so much of the precious metal (in addition to what it already mines) that it imported more than 209 tonnes during the first 10 months of 2010.Since 2003, Beijing has been buying most of the gold excavated and refined locally.Today, China has more than 1,000 tonnes in its official vaults, up 75% in six years. Its gold reserves are now the fifth-largest among national central banks after the US, Germany, France and Italy.Most of the 1.3 billion people in China only began to acquire and own gold in 2003 as gold ownership was banned from 1945 to 2003. The gold market was liberalized in 2003 .The World Gold Council stated that Indian households are presently in possession of more than 18,000 tons of gold, which represents the world's largest stockpile.
Eric Sprott, of Sprott Asset Management, reported having difficulty locating enough silver bullion for his new silver fund said : "Frankly, we are concerned about the illiquidity in the physical silver market. We believe the delays involved in the delivery of physical silver to the Trust highlight the disconnect that exists between the paper and physical markets for silver."
Today the Industrial Silver Demand at 18-year High
The Chinese government is actively encouraging their people to buy physical gold and silver instead of putting their money into real estate.paper silver is not silver, its fiat silver. Properly secured physical silver is real money. Whether its the 90% coins, sterling silverware, or bullion, its all good. silver is becoming rarer than gold, people just don't know it. With its industrial use as a consumed precious metal, it has the potential to surpass gold in value
Gold is not consumed in industry at the same rate silver is because:
1) Silver is better at conducting electricity

2) Silver has a better thermal transfer rate than gold

3) Silver is a better reflector of light than gold.

4) Silver is a better catalyst than gold

Has nothing to do with high price, Gold is a lousy industrial metal. If gold cost less than silver, Silver would still be used in much greater numbers than gold.
. Silver can usually replace gold, gold can not substitute for silver, or it can but causes the product to be inferior.

China buying all the gold she could lay her hands on

NEW YORK (TheStreet) -- George Milling-Stanely, managing director of the World Gold Council, breaks down China's buying patterns and if the country would get on a gold standard
There's been a lot of chatter in the gold community about China and getting on -- gold standard. Currently China Central Bank only has 1054. Tons of gold in its reserves so. Is China actually buying gold They've been buying periodically for a number of years now and every once in awhile they'll tell the world what they have done over previous period for example in 2009. They reported that at about 400 tons of gold to their reserves in the previous six years. We don't know when the next announcement will be coming but that said there a very strong flows of gold going into China right now. And that it -- and number of people in the market who wonder -- the private sector is capable of absorbing political it's flowing into the country nobody knows the answer we'll find out when China is ready to tell.

China dumping worthless FIAT Money for Gold

The Chinese population and government are dumping the worthless paper currencies of the world, which their governments just magic from nowhere, and dumping guilts, and are instead investing in gold. No matter what the price of gold is, one thing is certain, you can't print more of it like Western governments have done to their paper currencies.

Gold Output Up In China

Gold mining in China is up as rises prices support more production.

China Concerns Pull Down Commodities

China Concerns Pull Down Commodities

China Goes for Gold

Gold demand will continue to increase as China's central bank supports an expansion of the gold market. Don Dion currently Holds IAU and GDX
Wed 08/04/10 06:00 AM EST -- Don Dion
Stocks in this video: GDXJ | KGC | IAU | GDX

Gold rush in China is pushing the Gold price to all times high

Chinese love GOLD

May 18, 2010 — China is now the number one consumer of Gold , and it is not just consumers , the central bank of china is quietly building up its reserves moving away from Euros and Dollars into hard assets like Gold ...and to meet this demand for gold China is opening new mines every month to the point that China now eclipsed south africa as the gold's first producer , Smart Chinese buying gold and dumping FIAT at rapid rates....

I guess they see currencies are only headed one way...DOWN!