http://www.maxkeiser.com/2015/04/gold-flows-east-india-and-china-import-massive-quantities-of-bullion-from-switzerland/
"In what future generations will likely see as a major, potentially catastrophic blunder of monetary policy, the West and particularly the City of London continues to hemorrhage huge volumes of gold which is flowing Eastwards to Singapore, India and China from London via Switzerland.
“Gold exports to China from the refining hub of Switzerland almost doubled to 46.4 metric tons in March”, up from 23.6 tonnes in February” according toBloomberg. India’s gold imports from Switzerland doubled to 72.5 tonnes in the same period.
The increasingly affluent masses in China and India continue to have a voracious appetite for gold as a store of value.
Policy makers in China and Russia have also made gold a cornerstone of their monetary policy.
While sentiment towards gold in the West is abysmal – even as gold languishes at record lows when adjusted for inflation – Asian demand remains insatiable.
It would be wise for investors to inform themselves as to why this should be so. Demand for gold in Asia is often written off by Westerners as an irrational impulse of uneducated Asian peasant farmers and workers.
This is unfair to gold buyers in Asia – many of whom have experience of currency devaluation and therefore opt to own gold as a savings mechanism and a superior store of value.
However irrational holding gold may appear, the alternative – holding paper currencies which are continually being devalued through QE and inflation in various sectors of the economy – is even more irrational.
The fact that it is a matter of Chinese state policy to continuously accumulate vast volumes of gold and that the Chinese government has encouraged its citizens to own gold shows that bullion is not the fringe asset of irrational ‘gold bugs’ as it is often suggested in some western media."
"In what future generations will likely see as a major, potentially catastrophic blunder of monetary policy, the West and particularly the City of London continues to hemorrhage huge volumes of gold which is flowing Eastwards to Singapore, India and China from London via Switzerland.
“Gold exports to China from the refining hub of Switzerland almost doubled to 46.4 metric tons in March”, up from 23.6 tonnes in February” according toBloomberg. India’s gold imports from Switzerland doubled to 72.5 tonnes in the same period.
The increasingly affluent masses in China and India continue to have a voracious appetite for gold as a store of value.
Policy makers in China and Russia have also made gold a cornerstone of their monetary policy.
While sentiment towards gold in the West is abysmal – even as gold languishes at record lows when adjusted for inflation – Asian demand remains insatiable.
It would be wise for investors to inform themselves as to why this should be so. Demand for gold in Asia is often written off by Westerners as an irrational impulse of uneducated Asian peasant farmers and workers.
This is unfair to gold buyers in Asia – many of whom have experience of currency devaluation and therefore opt to own gold as a savings mechanism and a superior store of value.
However irrational holding gold may appear, the alternative – holding paper currencies which are continually being devalued through QE and inflation in various sectors of the economy – is even more irrational.
The fact that it is a matter of Chinese state policy to continuously accumulate vast volumes of gold and that the Chinese government has encouraged its citizens to own gold shows that bullion is not the fringe asset of irrational ‘gold bugs’ as it is often suggested in some western media."
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