As an organisation we at Pentagold aim to make this country a Golden Sparrow, where people are wealthy with Gold. Pentgold, bullion traders in India have made gold purchase affordable and easy with online gold buying facility and different installment schemes. We are sharing these articles from best of the sources to help you take right decisions when it comes to creating Gold Wealth.
China is the second largest power all over the world. Their economy is completely different than others. The china government decided to take over the global economy in the next few years. In china’s economy government plays a vital role and the foreign investment policy is somewhat different than other Asian countries like – India. The reason of changed foreign trade and foreign investment policy is – china believes they have “socialist market economy”. That is why – china implements the policies to protect its capital controls, FDI (foreign direct investment), saving and investments and of course the exchange policy.
When the rest of the world busy with stocks, mutual funds and other ETFs, china slowly impresses the investors to invest in the yellow metal – gold. China aggressively promotes buying/investing in gold.
Why China Promotes Gold Investment?
Well, the answer is simple – to dominate the global market through their currency value (the exchange rate of Yuan).
Open Policy for Buying/Selling Gold
Before 2002, it was very difficult to trade gold and silver in china and buying gold and silver can cause long imprisonment, but in the year 2002, china government open Shanghai gold exchange and withdraw the policy so that the people can freely buy/sell gold and silver. Since 2002, Chinese government has pushed the gold investment.
Through those activities china plays a significant role is “supply and demand” mechanism. Not only that, china soon comes to dominate ETFs (Exchange Traded Funds). Now a day, ETFs managed by the US companies. But very soon, china comes with sponsored ETF products for global investors. By analyzing the recent activities on china economics, it is clear that – china dominates the global gold market very soon and create new opportunity to the investors.
According to National Bureau of Mines – in the year 2012, China produces 370 tons of gold and they planned to reach 400 or more in 2013. The most impressive thing is, within a short time frame – china takes its place in top gold producing countries along with – South Africa, Australia and United States. China produces their majority of the gold (nearly 60%) from only 5 provinces. Now a day, china’s state owned and semi state owned gold mines are the biggest gold mines in all over the world. If you’re an entrepreneur and investor, then the China’s gold market can give you really attractive profits.