China Gold Imports - Staggering
Some statistics impress more than others. Here's one that should grab you.
First, if you didn't already know this, the largest gold ETF - by far - is GLD. This ETF holds more gold than all others combined. Since so many own gold through ETFs rather than actually possessing the metal itself - and this includes huge hedge funds, for example - we're talking about a lot of gold. In fact, we're talking about approximately 919 tonnes.
Now for the impressive statistic: Through the first seven months of 2013, China has imported almost 2/3rds that much gold - about 633.94 tonnes. That, friends, is a staggering amount.
Now add to this the fact that China has recently become the worlds #1 miner of gold. More gold is mined in China than anywhere else. And none of it ever leaves China.
So China has imported this rather staggering amount of gold in addition to the gold it produces itself.
As the price of gold continues in "correction" mode, from its 2011 highs, we may want to keep this Chinese import statistic in mind. Whatever traders may be doing to the price of gold - a price set based on pieces of paper in the futures market that represent gold that may or may not exist - it's good to remember that there is actual metal out there and in some parts of the world, that metal continues to be coveted in amounts that impress.
You can use this as one way to determine whether the price of gold may eventually continue the upward trend it began in 2001. You might also use this as one way to determine whether you ought to own some gold.
First, if you didn't already know this, the largest gold ETF - by far - is GLD. This ETF holds more gold than all others combined. Since so many own gold through ETFs rather than actually possessing the metal itself - and this includes huge hedge funds, for example - we're talking about a lot of gold. In fact, we're talking about approximately 919 tonnes.
Now for the impressive statistic: Through the first seven months of 2013, China has imported almost 2/3rds that much gold - about 633.94 tonnes. That, friends, is a staggering amount.
Now add to this the fact that China has recently become the worlds #1 miner of gold. More gold is mined in China than anywhere else. And none of it ever leaves China.
So China has imported this rather staggering amount of gold in addition to the gold it produces itself.
As the price of gold continues in "correction" mode, from its 2011 highs, we may want to keep this Chinese import statistic in mind. Whatever traders may be doing to the price of gold - a price set based on pieces of paper in the futures market that represent gold that may or may not exist - it's good to remember that there is actual metal out there and in some parts of the world, that metal continues to be coveted in amounts that impress.
You can use this as one way to determine whether the price of gold may eventually continue the upward trend it began in 2001. You might also use this as one way to determine whether you ought to own some gold.
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