Chinese Gold Hoarding Set to Increase with Liberalized Gold Trading

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Analyst Gary Mead said gold remains a place for storing your money when all else if failing, and it is most evident in China where liberalisation of gold trading is opening up opportunities for investors of all shapes and sizes, both overseas and within China itself.

The latest Asian Metals Monthly report, compiled for Fortis Bank by the VM Group,sees gold, both physical and futures, as having a strong long-term outlook in China.

Analyst Gary Mead said gold remains a place for storing your money when all else if failing, and it is most evident in China where liberalisation of gold trading is opening up opportunities for investors of all shapes and sizes, both overseas and within China itself.

Despite recent wider market turmoil, the high annual savings rate among Chinese households with even the country's poorest traditionally saving about 30% of their income.

Mead said that until quite recently China's gold market has been strictly regulated, and closed to foreign participation.

"It was not always thus. Back in the 1930s, the Shanghai Gold Business Exchange (as it was called) was one of the biggest gold trading centres in the Far East, and gold was a very popular investment. Turmoil of war and civil strife put an end to that, and the establishment of communism in China saw the State extend control over all aspects of the country's economy...

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