Nervous Investors In China Keep Gold Prices Strong
Investors in China have driven gold imports up by 50 percent in the last year. China is already the world’s biggest market for gold, much of it in bullion and gold jewelry, but now investors are buying gold bars at unprecedented rates. In the first quarter of last year they bought up 105 tons of gold bars. This extremely aggressive stance on gold has strengthened the base price of the commodity and there is reason to believe that gold investors in Canada could benefit from this strong international demand.
There are essentially two factors driving Chinese investors toward gold:
#1 Real Estate
For years, Chinese investors have been storing their wealth in real estate around the world, but especially in the U.S., Canada, and Australia. Locally you can see the effect this has had in Vancouver and Toronto, with Chinese investors now looking at under-tapped markets like Montreal. States-side they have also had a big impact in New York and California and are now turning to markets like Texas, Indiana, and Seattle.
But Beijing is starting to crack down on money going abroad, which is constraining real estate investment. A combination of tighter regulations and the profits already earned from international real estate has investors looking at gold instead.
#2 Fear
A more recent development and one that’s yet to play out completely is fear over a trade war with the United States. Trade war is bad for business and many predict that Beijing could retaliate beyond tariffs by further devaluing the yuan. Investors are rightfully worried about the impact to their savings so they’re shifting more money into gold bullion. Investors in China have a big appetite for safe haven assets and there’s no doubt that North American investors will soon follow suit.
If you follow the live price of gold, you know that it has a strong foundation going into what could become very tumultuous times internationally. There’s a constant onslaught of news that threatens to destabilize the global order. Gold investors with Silver Gold Bull are increasing their exposure to prepare for an impending stock market correction and the increasing likelihood of a new conflict somewhere in the world.
Gold has been one of the most reliable safe haven assets for decades. During times of crisis, the risk of putting money on the stock market is much higher and the rewards lower, so investors buy gold bullion instead. Here at Silver Gold Bull Canada, we not only sell physical gold bullion in times of crisis, we facilitate investors who want long-term exposure in their portfolios. One of the smartest ways to do that is by buying RRSP gold. But you can also quickly and easily buy and sell gold with Silver Gold Bull.
If you’re worried about global turmoil or you see an opportunity in China’s gold rush, it’s time to buy gold. Ask us if you want to learn more about how to buy gold online with insurance and free discreet shipping. Come out ahead in a financial crisis with gold.