This guy, Koos Jansen is really doing a great job in tracking China's gold market. His dragon chart or infographic gave us an overview of how gold market in China has evolved in its 83 years of history from 1930 to 2013. Among numerous developments, I consider these two as the most notable:
1. After 51 years, the Chinese government changed from its monopoly of the gold market and prohibition of private ownership of gold in 1950 to the abolition of such monopoly. In fact, since 2001, the central government has been encouraging its citizens to consider gold as a long-term investment.
2. After 38 years, from 14 tons of gold mined, less than 1% of global production in 1975, China was expected to have an output of 440 tons, over 14% of global production in 2013. In the same year, China was in need of 4 tons per day just to satisfy its domestic demand. This made China not only the # 1 gold producer superseding South Africa, but also the # 1 consumer overtaking India.
In times of uncertainty and doubt caused by gold market manipulation, fundamentals like these encouraged me to remain patient and focused that investing in gold - bullion, coins, and mining shares - in the long run will gain the upper hand.
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