Precious Metals: China is the Heavyweight Gold Champion 千錘百煉

China is  the world’s top producer of gold (437 MT in 2013)
They are the largest gold importer and consumer in the World.
They imported a record 1,108 MT in 2013 and consume half of the world’s mines output. (World Gold Council).

Not every climate is good for gold.

Expectations of higher policy interest rates and disinflation going forward are gold-bearish and if the dollar remains firm, the financial-driven demand for gold should stay on the defensive.
Nevertheless, Gold remains the only asset that you can turn to money very quickly and easily in time of troubles.

Gold is the only commodity that is highly liquid and extremely fungible during a crisis.
Because of its inverse correlation with most assets, gold is used in by portfolio managers in asset allocation.

According to the latest GFMS Gold Survey Update, there are 179,300t of above ground stocks.

If you believe these numbers, with gold having a density of 19.3 grams per cubic centimeter, this imaginary Gold Cube would measure 21.02m on each side.

gold cube

Authors Patrick Doucet and Khadidiatou Diop
are undergrads students in Finance at Université de Moncton in Canada.

 

 

Blue and Gold Merchants' Club

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