ChinaGold is focused on Chinese gold tangibles and stocks. We provide accurate, up-to-date information about the current value of gold in the market and a variety of tangible options for those wishing to invest in one of the most liquid and reliable forms of gold investment of the day - Chinese gold coins. Read on for a more detailed analysis of current economic trends and the rise of Chinese gold as a reliable and increasingly valuable investment.
Why Invest in Gold?
Most analysts are in agreement that precious metals should make up a healthy percentage of a portfolio. Five to ten percent is standard but in the current financial climate some investors are opting to hold thirty percent or more of their net worth in gold bullion alone. Gold is money, held by Central Banks in reserve as cash par excellence. It is renowned for outperforming other assets in uncertain and especially unstable times.
Background on Current Economic Crisis:
A battle is playing out between strong inflationary and deflationary forces. There were years of malinvestment and over-leverage by International Banks, Hedge Funds and even the individual property speculator and now the markets are readjusting to reflect this. The Central Banks, meanwhile, continue to expand the money supply which shows unprecedented levels of debt in all areas of the economy. There has been worldwide effort to re-inflate by aggressively expanding the money supply to try to counter the effects of typical market correction that follows a period of excess. It is these inflationary policies that created the problem in the first place. Whether it leads to a destruction of wealth through hyperinflation or years of stagnation, as in the case of Japan, it is yet to be determined. What is known is that all fiat currencies have ultimately failed as result of irresponsible policies that alter the confidence they once commanded as a medium of exchange. U.S unfunded liabilities are $60-100 trillion and require China and other foreign nations to continue to purchase Government Bonds at an exponential rate. Without this compliance, a huge evaporation of wealth will take place for those holding dollars and most dollar denominated assets as the currency is devalued or replaced with an alternative. U.S Treasury Department data shows that Chinese investors have sharply curtailed their purchases of these bonds.
Why China?
As an exporter nation, China has accumulated huge foreign cash reserves. The standard of living has improved immensely for many and this can be attributed to an average growth of 10% per year for 20 years. The most populous nation still has hundreds of millions of citizens who are still living in poverty even as the middle class has grown to three hundred million. A shift is underway as the Chinese Authorities are well aware that they have been subsidizing U.S consumerism with cheap goods by keeping their currency artificially low and buying U.S. Government debt in the form of bonds. They are now doing what they can to stimulate their domestic demand for goods and services to shoulder the lower demand for exports in a recession. They need to increase living standards for the majority. This is evidenced by the bank lending which was greater in the first quarter of 2009 than the whole of 2008. With low debt levels of Chinese households and a 50% savings rate, domestic demand for goods and services is still in its infancy but the middle and upper classes are spending, which is evidenced in the increasing demand for luxury goods and services. China finds itself in a similar situation to Great Britain at the beginning of the 19th century or United States at the beginning of the 20th century.
Why ChinaGold?
China has become the world's primary gold producer and buyer. Investors who wish to leverage anticipated gains from price appreciation of the precious metal may wish to look at Chinese gold producers and exploration companies listed on international stock markets. This is 'a play' on gold and does not constitute in actual ownership of the metal.
Investors reevaluating their portfolios should acquire physical gold coins and bars for investment, savings and insurance purposes. By owning these assets in hand, you remove the possibility for being defaulted upon by an agent who promises to deliver but may not be able to when you need it most. One ounce coins are the most liquid and can be easily transported and sold anywhere in the world. Chinese gold coins have the greatest potential for those looking to buy bullion. ChinaGold makes it possible to research the options and acquire these assets all in one place.
Why Invest in Gold?
Most analysts are in agreement that precious metals should make up a healthy percentage of a portfolio. Five to ten percent is standard but in the current financial climate some investors are opting to hold thirty percent or more of their net worth in gold bullion alone. Gold is money, held by Central Banks in reserve as cash par excellence. It is renowned for outperforming other assets in uncertain and especially unstable times.
Background on Current Economic Crisis:
A battle is playing out between strong inflationary and deflationary forces. There were years of malinvestment and over-leverage by International Banks, Hedge Funds and even the individual property speculator and now the markets are readjusting to reflect this. The Central Banks, meanwhile, continue to expand the money supply which shows unprecedented levels of debt in all areas of the economy. There has been worldwide effort to re-inflate by aggressively expanding the money supply to try to counter the effects of typical market correction that follows a period of excess. It is these inflationary policies that created the problem in the first place. Whether it leads to a destruction of wealth through hyperinflation or years of stagnation, as in the case of Japan, it is yet to be determined. What is known is that all fiat currencies have ultimately failed as result of irresponsible policies that alter the confidence they once commanded as a medium of exchange. U.S unfunded liabilities are $60-100 trillion and require China and other foreign nations to continue to purchase Government Bonds at an exponential rate. Without this compliance, a huge evaporation of wealth will take place for those holding dollars and most dollar denominated assets as the currency is devalued or replaced with an alternative. U.S Treasury Department data shows that Chinese investors have sharply curtailed their purchases of these bonds.
Why China?
As an exporter nation, China has accumulated huge foreign cash reserves. The standard of living has improved immensely for many and this can be attributed to an average growth of 10% per year for 20 years. The most populous nation still has hundreds of millions of citizens who are still living in poverty even as the middle class has grown to three hundred million. A shift is underway as the Chinese Authorities are well aware that they have been subsidizing U.S consumerism with cheap goods by keeping their currency artificially low and buying U.S. Government debt in the form of bonds. They are now doing what they can to stimulate their domestic demand for goods and services to shoulder the lower demand for exports in a recession. They need to increase living standards for the majority. This is evidenced by the bank lending which was greater in the first quarter of 2009 than the whole of 2008. With low debt levels of Chinese households and a 50% savings rate, domestic demand for goods and services is still in its infancy but the middle and upper classes are spending, which is evidenced in the increasing demand for luxury goods and services. China finds itself in a similar situation to Great Britain at the beginning of the 19th century or United States at the beginning of the 20th century.
Why ChinaGold?
China has become the world's primary gold producer and buyer. Investors who wish to leverage anticipated gains from price appreciation of the precious metal may wish to look at Chinese gold producers and exploration companies listed on international stock markets. This is 'a play' on gold and does not constitute in actual ownership of the metal.
Investors reevaluating their portfolios should acquire physical gold coins and bars for investment, savings and insurance purposes. By owning these assets in hand, you remove the possibility for being defaulted upon by an agent who promises to deliver but may not be able to when you need it most. One ounce coins are the most liquid and can be easily transported and sold anywhere in the world. Chinese gold coins have the greatest potential for those looking to buy bullion. ChinaGold makes it possible to research the options and acquire these assets all in one place.