Daily News

4 February 2010 – China not only led the world in gold production for 2009, it has become one of the hotspots for trading as well, with a growing number of young Chinese paper traders highlighting increased gold investment. A survey of 60,000 people by the Shanghai Gold Exchange revealed that paper gold trading has joined bullion as the two preferred forms of trading this precious metal.

This enormous survey reflects not only a strong interest by the Chinese in gold trading, but reflects a worldwide trend towards gold investment as well. Strong bullion sales have attracted new people to gold, as the global economy struggles and the US dollar has been unable to regain previous strength. These facts have not gone unnoticed in China, as rising incomes have provided additional wealth for investment. For many Chinese, this money is best used in gold investment.

Like 2009, people investing in 2010 are being faced with economic uncertainty as many governments try to reduce spending while renewing growth. Many people see this conflict and realize that investing in an asset-based commodity like gold is more stable in the long-run than investing in stocks or other performance-based vehicles. For around $1,100 per ounce, an investor is actually purchasing something of value, unlike a share of stock in a company that disappears if it goes out of business.

As a growing number of Chinese investors look to both paper gold and physical gold as their investment of choice, the market continues to position itself for another rally amid concerns of economic hardship in the US and other countries. Gold bullion, certified coins and ETFs continue to be favorable for people who wish to increase their wealth through gold investment. 

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Stewart Lawson

Senior Staff Writer - Gold-Investment.info