In my article, “Wealth Building Thru Gold Investing – It is All About Supply and Demand” I stated that Asians have a strong affinity for gold and as Asian investors become wealthier their ownership of gold will increase. The sheer number of potential Asian investors buying small amounts of gold will create an unprecedented demand driving the price of gold higher. The following provides additional support for my position.
Source: Swiss America Trading Corporation
By Craig R. Smith
From Monday (Christmas Day), The Shanghai Gold Exchange lowered the size limit for trading in gold bars from one kilogram to 100 grams in a move to make trading in the precious metal more accessible to small private investors. The Year of the Pig (which starts on February 18th on the Gregorian calendar), suggests a year of good fortune to the Chinese and in 2007 this coincides with a metals year on the five year elemental cycle tieing in with the five major planets, and the metal associated with this is traditionally gold. So the combination of pig (good fortune) and metal (gold) might well lead to additional private investment in the precious metal once the New Year starts – and this should be made easier by the much lower threshold of entry,” reports Mineweb.com.
ChinaDaily reports last week… “Greeting the upcoming ‘Year of the Golden Pig’ in 2007, domestic banks are enthusiastically unfolding gold marketing strategies, while customers are busy buying up gold for their financial portfolios with the New Year just ahead.”
Goo Hyun-su of Shinhan Bank’s Product Development Division stated, “With the price of gold rising due to the recent weakening dollar, interest in gold has increased. Moreover, the preference for gold jumped with the next year being the year of the golden pig.”
I absolutely love the authors concluding statements.
“Ironically China’s 2006 gold consumption also grew by an amazing 17%. Imagine that. The higher the income the less they intend to spend and the more they intend to save largely in gold. Sadly, this is exactly opposite of what Americans have been doing, as gold consumption in the U.S. declined 10% in 2006.”
“I would like to suggest that every American take a lesson from the Chinese “Year of the Golden Pig” by starting their own personal golden piggy bank. Instead of viewing our homes as a piggy bank, we must diversify our resources into assets that will stand the test of time – like gold and silver.”