China Is Becoming The Big "X" Factor
Thursday, July 12, 2007 - FreeMarketNews.com
What happens when 1.3 billion Chinese decide to buy a little gold? More than likely, a rather large and sustained increase in the metals price. Dr. Michael Berry writes in his Morning Notes:"Equities are susceptible to bad news at this point. Negativity on Gold and especially silver is reaching highs. This is good, very good. Last but not least, Xinhua.net reports this AM that as of July 1 China will allow individuals to trade, own and possess gold in China. This will obviously have significant implications for gold demand in my view. The news service notes that individuals can trade from a minimum of 100 grams (3 ounces worth $2100) and take the gold home! Thousands of investors have signed up according to the news service. Some of that equity bubble liquidity will likely find its way into the global demand for gold. Is Beijing tweaking the nose of the world's central bankers or just being safe."David Harmon writes in Resource Investor:"China will open its spot market to individual investors for gold trading nationwide in July, a Shanghai Gold Exchange official told Interfax today. SGE press official, Tong Gang, said that individual investors will be able to trade gold at a minimum trading volume of 100 grams through financial institutions that hold SGE membership." Staff Reports - Free-Market News Network
What happens when 1.3 billion Chinese decide to buy a little gold? More than likely, a rather large and sustained increase in the metals price. Dr. Michael Berry writes in his Morning Notes:"Equities are susceptible to bad news at this point. Negativity on Gold and especially silver is reaching highs. This is good, very good. Last but not least, Xinhua.net reports this AM that as of July 1 China will allow individuals to trade, own and possess gold in China. This will obviously have significant implications for gold demand in my view. The news service notes that individuals can trade from a minimum of 100 grams (3 ounces worth $2100) and take the gold home! Thousands of investors have signed up according to the news service. Some of that equity bubble liquidity will likely find its way into the global demand for gold. Is Beijing tweaking the nose of the world's central bankers or just being safe."David Harmon writes in Resource Investor:"China will open its spot market to individual investors for gold trading nationwide in July, a Shanghai Gold Exchange official told Interfax today. SGE press official, Tong Gang, said that individual investors will be able to trade gold at a minimum trading volume of 100 grams through financial institutions that hold SGE membership." Staff Reports - Free-Market News Network
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