Gold is quickly reaching the mania phase in China, and there are clear signs of it on the ground. About a month ago, we reported that for the first time ever, the Chinese government is promoting gold and silver as investments. And by “promoting,” we meant cramming it down people’s throatsWe went into several stores and saw Chinese people buying like crazy… all with cash. The most popular denominations were 10 grams and 50 grams– and I’m surprised the mint shops didn’t sell out at the rate those bars were flying off the shelf..http://www.sovereignman.com/finance/gold-mania-in-china/#more-650
The cool thing in China was that I could buy gold in the shops there right at melt value, including some of the commemorative coins.
I understand that China is the world's largest producer of PMs. And they do not want to sell those PMs to get dollars; they already have more dollars than they want. So selling it internally is the answer. It makes good sense for them to have their citizens buy it. We have social security. China has privately-owned gold. Let's see which system works better.
China would probably have a much better system if they are encouraging people to buy gold. I just hope my country would do the same and not rely on the american social security model.
Too bad all the gold that was flying off those shelves was fake! LOL! Wouldn't that be ironic. I wonder if the Chinese sell their fellow countrymen fake gold coins?
