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Monday, June 20, 2011

gold

S&A Resource Reportn short: The Chinese government has created a secret new gold investment, which could soon pay you a small fortune.



China has gone crazy for gold.

Over the past five years, the country's gold consumption has grown by whopping 84%.

In fact, a recent story in the Financial Times reported that "China will overtake India as the largest consumer of gold this year."

In the same story, a senior banker from London estimated that China had imported 200 tons of gold in the previous three months. He said that "The demand is unbelievable. The size of the orders is enormous."

But here's the amazing thing few investors realize...

Behind the scenes, in a move that has gone almost completely unreported in the Western press, the Chinese government has helped create a gold investment that could dwarf the returns of gold bullion, ordinary gold stocks, or any other type of gold investment you've heard of before.

I can't say with any certainty how much money you could make from this unique type of investment, but I've already helped some people potential gains of 339%. I realize that most investors have never made this much on a single investment in their entire careers, but consider...

This is not the first time Beijing leaders have secretly created such an opportunity:

In the late 1990s, the Chinese government created two similar investments. One (to help the local insurance industry) went up more than 730% in just a few years... the other (to aid the energy sector) has gone up about 1,137% over a similar period.

But this is the first time Chinese officials have intervened in this way in the gold markets—and I expect the result will be a windfall for savvy investors over the next few years.

After all, gold is one of the only "buy and hold" investments in the world right now. It is also the only investment in the world that has gone up EVERY YEAR since 2001. And, remember, China remains the fastest-growing economy on the planet, with the wealthiest government on Earth.

The point is, if you are interested in an extremely lucrative way to play gold, right alongside the Chinese government, this is something you should consider.

I can just about guarantee you will not hear about this opportunity in any mainstream media publication. I heard about it only because of a contact in the industry, who met recently with officials in Beijing.
Right now, only a tiny fraction of China's reserves are in gold.
In fact, the numbers are incredible...

According to the World Gold Council, China has only 1.6% of their reserves in gold. Meanwhile, 70% of Germany's reserves are in gold. In the U.S. 74% of our reserves are in gold.

That's amazing isn't it?With all the gold buying China has been doing, they still have just 1.6% of their reserves in gold.

Also, take a quick look at this March 2011 chart from the World Gold Council. It shows how, over all, the U.S. government has more than 7-times the gold reserves as the Chinese government.

Rank
Country/Agency Gold (tonnes)
%of Reserves
1. United States
8,133.5
73.8%
2. Germany
3,401.0
69.8%
3. Int. Monetary Fund
2,814.0

4. Italy
2,451.8
68.0%
5. France
2,435.4
64.8%
6. China
1,054.1
1.6%

The point is, China is looking to move up in the ranks... and fast.


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