China and India Are Gold Super Consumers!

15 Jul

China and India Are Gold Super Consumers!

The Two Countries Make Up Nearly Half of the World’s Gold Demand!

The gold rush is on.  If you don’t see it, it is because it is taking place in Asia.  

 India and China together are gobbling up the world’s gold.   The two nations are responsible for half of the world’s total gold demand.  In fact, Asia taken as a whole is responsible for 60 percent of the world’s demand, while both China a Japan are reducing their US dollar holdings.

That is a gold rush, in our view. 

While the US has a long and foolish track record of suppressing gold ownership by its citizens, China has a different outlook.  It has liberalized gold ownership and reduced restrictions on its people.  The result is a five-fold increase in gold consumption since the 1990s.  China is today the largest gold producer in the world as well as the largest net acquirer of gold.  (India is the second largest acquirer of gold.)  If history is any guide – and it is – this means that China (and perhaps eventually India) will become more influential in the affairs of mankind.  The West, which is dis hoarding gold, will wane in influence.  

Here is a link to an October 2022 Bloomberg News article headlined, The Gold Market’s Great Migration Sends Bullion Rushing East!”  

The People’s Bank of China added to its gold reserve again in June, increasing its holdings by 23 tons.  That is the eighth consecutive month of the central bank gold growing its gold stock.  These increases are a strategic move, one that coincides with China reducing its dollar reserves held in US government bonds.  The promiscuous application of dollar sanctions and trade restrictions are making the dollar into a toxic asset in the eyes of many foreign nations.

We expect the global flight from the dollar and into gold to continue.  It is not just a sound strategy for nations, it is a wise strategy for individuals.

Your Republic Monetary Exchange gold and silver specialist is available to guide you in protecting yourself and your wealth with precious metals.