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Asians Buying More Gold As Inflation Rises.
“Continental-Trade” on why Asians are emulating their western counterparts and buying more gold.
Although economic growth in most emerging market countries has continued at a blistering pace whilst it has faltered in the so-called developed economies, investors in those countries face similar challenges when it comes to preserving their wealth.
Economic growth in China is slated to reach 10% whilst countries like Thailand, Malaysia, Indonesia and others, are set to post rates that the US, UK, Germany or Japan would die for. Unfortunately, growth at this level carries a price tag that many investors baulk at paying. That price is inflation. An analyst at “Continental-
Normally, when an economy shows signs of overheating, the country’s central bank will raise interest rates in order to cool economic activity but there is little that can be considered normal in the current global economy. One “Continental-
Truth be told, gold has always been considered a store of wealth and value by most Asians whereas, in advanced economies, the yellow metal has been disparaged as nothing more than a throwback to far less sophisticated monetary systems; often by those with a vested interest in maintaining the fractional reserve banking status quo. The Chinese, Indians, Thais and others, however, still regard gold with considerable reverence and, as the “Continental-