Read More Don't know what is driving the demand there, but I am quite sure than by 2012 or 2013, China will overtake as the No.1 importer of gold and silver.
I'm pretty sure tht China also reduced silver exports dramatically around the same time. Rise in imports for damn sure weren't for anyone else but them. Maybe they just want to hold it for "tradition," as Bernanke says.
I don't know what's driving demand either, to be honest, but maybe there are a lot of Chinese who see the writing on the wall with their monetary policies and feel that bullion metals are a better place to park their money.
Could they be preparing for a commodity backed currency to put into use when the **** hits the fan globally? I mean, we all know that fiat currency never lasts forever. So if they have plans to move to a gold standard, having more gold would certainly help get that off of the ground when the time comes. Possibility?
That can be very dangerous. Nations like China never reveal how much gold stockpile they are having in national agencies. I am sure it is under 5,000 tonnes. But what if, (well not even in my wildest dreams it is possible) they are having something like 50,000 tonnes and they decide to sell off all that stuff at some point of time? Not possible in practice, only in theory, but I am quite skeptical.
Word! china is not going to give itself away. there is no reason to believe that china is worried about its position. I think it should be, but that doesn't mean anyone is in agreement.
