2011, the demand for gold in China Overtakes developed West (together!)

Here are some charts of gold, which need to make their own jaw-drop in the people's Republic of China.  Frank Holmes, writing a courtesy of: Kitco.com

The World Gold Council (WGC) released its "Gold demand, the development of the" quarterly report last week, and as always, it was full of fascinating information on the strength of gold on the world market. Gold demand increased by 11% 981.3 tonnes in 2011, 43.7 billion dollar worth at the end of the quarter in the first quarter.

This is not a completely new phenomenon in China. In the years 2007-2010 investment demand rose by 68% compounded annual growth rate of CPM units. The company predicted to increase the demand for investment in China to 34,7% in 2011, but this new data on it may need to change its forecast.

Song Qing, the Shanghai-based Lion fund management, the Director told Bloomberg News that "gold has taken a new role in China's concern about inflation … keskelläVain imagine the total wealth of the people's Republic of China, and even a small percentage of the purchase of gold by selecting. This demand will be huge. "

The full article: Asian Tiger teeth into Gold tubes

And this chart says it all:
Scratching my head, was accompanied by a friend of mine here in the United States, Wondering who was buying all the heck that gold the past during startup.  Then went to the Asia and saw eye-to-West is no longer driving these markets.  And this chart really says it all.

The interesting thing I've learned that the same phenomenon occurred even more dramatic extent-rare, with the China collectibles.  A friend of my wife's father is a very wealthy business man in Taiwan.  He has collected rare items in the system of the people's Republic of China in the last 20-30 years.  Now, when he is gone, he begins to sell off some of his collection and is so astounding time women he pays for the items (100 x-1000x, in some cases).

Now that the Chinese are beating the new millionaires and billionaires, including rare historical items in the balance of the system is due to the dramatic increase in prices.  And the same will happens to gold, which is the middle class can play itself to the trend.

When all of the type to buy what they help to save their wealth as the Renminbi?  Vis-à-vis the US dollar?  Eur?

This trend should be kept, I guess, as long as real interest rates are near zero, or negative, there (in theory, the real prices are approximately 1% today, if you think inflation is really running 5%).

Hat Tip to the TIP of the drugs on a daily basis in this link.

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