T Nation

WS Journal: China Buys Gold. Dollar Collapse?


"Gold's record rally has been attributed to everything from worries about inflation, the dollar and the emergence of exchange-traded funds. One big factor many may have missed: huge buying from China.

Data cited Thursday by China's state-run Xinhua news agency showed that China imported 209.7 metric tons of gold in the first 10 months of the year, a fivefold increase compared with the same period last year.

That surpassed purchases made by ETFs and surprised analysts, who until now had no clear insight into the size of China's buying.

Gold demand in general has soared globally this year, as a result of the sovereign-debt crisis in Europe and the Federal Reserve's new round of bond buying. Gold prices were pushed up to an all-time high of $1,409.80 a troy ounce on Nov. 9. Thursday, gold settled $1.20 higher, or 0.1%, to $1,388.50, up 27% for the year.

"Everybody in the gold market knew there was a surge in investment demand, but they didn't know it was China," said Jeff Christian, managing director at CPM Group."

As the Great Collapse of the 21st century accelerates, I hope that all of you will take a lesson from the smartest people on Earth (the Chinese) and protect yourselves with gold and silver.

Best of luck to all! We're gonna need it.


If you study history and the timeline of gold, you would realize how unstable and in some instances useless gold is. In fact, throw away history and just think, if the world economy as we know it collapsed(so all currency was quite useless), would gold even matter? Absolutely not. Food, fuels, clothing and so on would be. A bartering system would arise. Gold is having a bubble effect. Lately, fear is whats causing it to rise. I used to believe in gold as well but its just not a great investment if you think about it. Even top U.S financial experts agree. Now having said that, I believe in can be a great short term investment. But I doubt this gold hype will last long. I would put money on that in fact.


Will you knock it off with the logic? Sheesh, how does this help all of the people on this site who are waiting for economic collapse?


When was the last economic collapse? Who was it and how quickly did they rebound?


1931, when an Austrian bank collapsed. Of course, the USA had created a lot of funny money, to prop up the British pound, and that caused a bubble here. So...

If you count from 1929 and the Great Crash, it took 25 years until the market recovered to the level of 1929.


And only 3 years to recover from the 07 slide. See all of the similarities?


Ah, nonsense.

We are not talking a Mad Max scenario where the only currencies left are gas, ammo and pussy, but a possible hyperinflation.

In that case, gold would be awesome.

Also, if you have to travel fast to a place that actually has an economy left try to transfer money without the government noticing whereas I can garantuee you that you can put quite a bit of value up your ass in the form of gold and diamonds.

If the point did not get through, I can try to put in even more blunt terms.

My country has had 4 currencies in the last 100 years and the last 3 went to shit lightning fast when it happened.

Oh, I forgot, shit like that does not happen in America, expect that it already did.


edit: Sorry, we have the fifth currency now.


Like I said, as a short term go-to, its a great investment. From 1833 to 2001, the compound annual growth rate of gold was only 1.54%. That is pretty rotten. Since September 11, the value of has definitely increased. It is looking better right now but you cannot deny nearly two centuries of consistently poor track performance. And if you think about it, would you want to buy at its highest price in 176yrs?


It is not an investment, it is a hedge.


Thats how you view it but I believe headhunter(correct me if Im wrong hunter) was mentioning it as a investment. Guess it depends on how much money you put into it. It can be good to have your finances in a variety of areas.


The goal is to protect from a collapsing currency.

True that gold HAS had a good run. Silver is better IMHO. For investment, I really like oil now. Look for $150 oil (with $6/gallon gasoline btw) very soon.

As Europe collapses into chaos, the dollar may actually rise, though I'd look at Swiss Francs first.


Gold is useless, you can't sell it for 100% of it's value. Most dealers will only buy at a steep discount, plus fees. It might be a good investment/hedge on paper but in reality it's not that great of an idea to have a lot of money in it.


You know most be may think we are idiots for thinking that but its a possibility. Europe is looking pretty bad financially and if it continues, then I would most certainly agree. But at the same time, the Yuan (China's currency) may be in the forefront of all


Rest assured Europe will not collapse.


The EU might.


Agreed. I actually didnt mean European countries themselves to fail but the currency at use.


Buy an ETF. Metals bought for self-storage are for self-protection just in case. You pay for that, like buying extra food or a 12 gauge.


Buy an ETF. Metals bought for self-storage are for self-protection just in case. You pay for that, like buying extra food or a 12 gauge.