Buy Gold: Chinese gold purchases doubled in 2011

Gold Investment - 6 February 2012

Chinese gold purchases have doubled in 2011 despite China being the biggest gold producer in the world today. The strong demand for gold in China is not driven by tradition, but a strong need for protection against fiat currency failures.

Chinese gold purchases have soared from 245 tons in 2010 to 490 tons in 2011, a massive 100% increase or double the 2010 purchase figure. The Chinese are clearly fleeing to the safety offered by hard currencies such as gold (and silver), especially after an official of the People's Bank of China (PBOC), Zhang Jianhua, announced the following in December last year: “No asset is safe now...The only choice to hedge risks is to hold hard currency—gold” (China Doubles Gold Holdings: No Other Asset is Safe, Wealth Wire, Brittany Stepniak, 30 January 2012). He failed to mention silver, despite the fact that silver is also a hard currency and that the Chinese have a strong appetite for silver. In fact, silver imports into China quadrupled in 2010 to an amount of 3500 tons, a fourfold increase from the previous year’s (2009) silver imports. This is not even mentioning 2011’s silver imports into China. Anyhow, back to gold, something that is clearly welcomed in China, despite the fact that gold (and silver) are still largely rejected by the majority of Westerners. It is after all no secret that the majority of Westerners still falsely believe that clinging to fiat currencies (non-redeemable paper notes, fiat paper money, electronic money, the Devil’s money, fiat currencies, toilet paper money, trash) will save them from the devastating consequences of the upcoming collapse of the global fiat Ponzi scheme, led by the U.S. Dollar. Yes, redemption as far as our financial and economic sins go can still be purchased or obtained through the buying of hard currencies such as gold and silver, but needless to say, the window of opportunity is closing fast (and most definitely won’t stay open forever). It is after all commonsense that those who fail to realise that they are participating in a Ponzi scheme, stand to lose the most, especially if they refuse to take redemptive action. Failure to take redemptive action, whatever your excuse might be, is absolute suicide, financially and otherwise. Just consider the number of people who have taken their lives after they’ve lost all their financial wealth in the Madoff Ponzi scheme. Now what do you think will happen if the global fiat Ponzi scheme comes to an end? Yes, we’re all going to suffer as a result of it, but is it not best to prepare for the event, mentally and physically? If not, is it better to ignore it and think it will somehow not happen or come down? Yes, one can ignore a problem this big and think that it will just go away, but that is to live in a world filled with fantasies and fables, a world that will at some point clash with reality in the most painful of ways. This is why it is smart of the Chinese to continue to buy or acquire hard currencies such as gold and silver. 

If you want to buy gold, but it is a bit out of your league due to budget constraints, then we want to encourage you to strongly consider buying or acquiring silver, physical silver that is. Be sure to visit our sister site, www.silverbullion.co.za, if you wish to learn more about silver and the wonderful opportunities it offers.