Chinese rely on gold as a hedge
(PresseBox) - .
Compared to last year, Chinese citizens buy about 30 percent more gold coins and bars.
There are several reasons why gold has become so popular as an investment measure. For one thing, the yuan has depreciated by almost six percent against the U.S. dollar this year. For another, the real estate crisis is still ongoing. The founder and CEO is in police custody. And bond yields have fallen. Because of the high demand, gold has become very expensive for the Chinese. Compared to the metal prices in New York or London, a premium of more than 100 US dollars has to be rapped. The markups have thus reached a historical relative high. In August, gold imports rose by around 15 percent. So, demand is enormous. So financial volatility is being met with gold purchases. Jewelry buyers also seem to be stocking up on gold early.
The People's Bank of China is also increasing its gold holdings. Experts are predicting a possible new all-time high. Worldwide gold reserves may have reached a peak of almost 38,800 tons in June. The last record dates back to 1965, when there were about 400 tons less worldwide. Probably since the 2008 financial crisis, many central banks have been buying gold heavily to make themselves less dependent on the U.S. dollar. As a reminder, in September 2007, an ounce of fine gold cost around 750 US dollars. At that time, the environment was also difficult, and gold showed resilience.
Among gold companies, U.S. GoldMining - https://www.commodity-tv.com/ondemand/companies/profil/us-goldmining-inc/ - is recommended. The company is moving forward with the rediscovery of the Whistler project (gold and copper) in Alaska. The 10,000-meter drilling program has begun.
Victoria Gold - https://www.commodity-tv.com/ondemand/companies/profil/victoria-gold-corp/ - has been producing gold at its Yukon-based Dublin Gulch gold property since 2019. The company has just taken on additional projects in the Yukon, expanding its presence there.
Corporate information and press releases from U.S. GoldMining (- https://www.resource-capital.ch/en/companies/us-goldmining-inc/ -) and Victoria Gold (- https://www.resource-capital.ch/en/companies/victoria-gold-corp/ -).
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Unternehmensinformation / Kurzprofil:
Datum: 03.10.2023 - 14:49 Uhr
Sprache: Deutsch
News-ID 692113
Anzahl Zeichen: 4274
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