Why Chinese Citizens Invest In Gold :: The Market Oracle :: Financial ... | How to invest in gold

Why Chinese Citizens <b>Invest In Gold</b> :: The Market Oracle :: Financial <b>...</b> | How to invest in gold

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• Why Chinese Citizens <b>Invest In Gold</b> :: The Market Oracle :: Financial <b>...</b>
• A "great time" to <b>invest</b> in Sunridge <b>Gold</b>, says <b>gold</b> maven Brien <b>...</b>
• <b>How To Invest in Gold</b> - Wego-oman

Why Chinese Citizens <b>Invest In Gold</b> :: The Market Oracle :: Financial <b>...</b> Posted: 18 Aug 2014 01:57 PM PDT Commodities / Gold and Silver 2014 Aug 18, 2014 - 10:57 PM GMT By: I_M_Vronsky The US$ price of gold has soared +377% from 2001 to date. That's a compound annual growth rate (CAGR) equal to 13.4%. Contrast gold's monumental appreciation with the pathetic performance of the Shanghai Stock Exchange Index and the miserly return of US Treasuries.    Gold's CAGR in US$ and Yuan (Renminbi) Since 200 the US$ price of gold has enjoyed a 13.4% CAGR. Since 200 the Yuan (Renminbi) price of gold sports a 10.6% CAGR. China's money supply shows a 18.1% CAGR since 2001…one of world's highest China's Future Gold Demand To Go Viral "A major report published recently by the World Gold Council, "China's Gold Market: Progress And Prospects" suggests that private sector demand for gold in China is set to increase from the current level of 1,132 tonnes per year to at least 1,350 tonnes by 2017. Following the record level of Chinese demand in 2013, which saw the country become the world's largest gold market, the report suggests that while 2014 is likely to see consolidation, the succeeding years are likely to see sustained growth. The report examines the factors that have driven China's rise to become the number one producer and consumer of gold since the market began liberalising in the late 1990s. It also highlights why despite this steep growth in demand, the market will continue to expand, irrespective of short term blips in the economy. The next six years will see China's middle class grow by over 60%, or 200m people, to a total of 500 million. Comparing this to the total population of the US, which stands at 319m, puts the size of this new market of affluent consumers, with the propensity to buy gold, in perspective. In addition to these newly emerging middle classes, rising real incomes, a deepening pool of private savings and rapid urbanisation across China suggest that the outlook for gold jewellery and investment demand in the next four years will remain strong. Albert Cheng, Managing Director of the Far East at the World Gold Council said: "Since liberalisation of the gold market began in the late 1990s and the subsequent offering of gold bullion products by local commercial banks from 2004, we have witnessed astonishing increases in demand for gold from consumers across the country. The cultural affinity for gold runs deep in China and when this is combined with an increasingly affluent population and a supportive government, there is significant room for the market to grow even further. The country is now at the centre of the global gold eco-system." "Whilst China faces important challenges as it seeks to sustain economic growth and liberalise its financial system, growth in personal incomes and the public's pool of savings should support a medium term increase in the demand for gold, in both jewellery and investment." The key findings from the research include the following: China's continuing urbanisation means that it now has 170 cities with more than one million inhabitants3 - within these cities, the middle classes currently number 300million and are set to grow to 500 million by 2020. Demand for gold amongst those with a greater disposable income and limited investment opportunities will continue to grow. Chinese savings levels remain high - there is an estimated US $7.5 trillion in Chinese bank accounts and household allocations to gold remain small, around $300 billion. Gold is seen as a stable, accessible investment by consumers, particularly in the light of rising house prices and a lack of alternative savings options. Chinese investors have a preference for physical gold over paper, with investment focused on small bars, gift bars or Gold Accumulation Plans (GAPs). New gold investment products mean that medium term demand for bars and coins could reach close to 500tonnes by 2017 – a rise of nearly 25% above its record level last year. China has become the world's number one jewellery market, nearly trebling in size over the past decade - at 669tonnes in 2013, it accounts for 30% of global jewellery demand. Estimates suggest that demand will continue to grow and reach 780t by 2017. There are now over 100,000 retail outlets selling 24k gold and thousands of manufacturers nationwide. Consumer sentiment toward gold is unwavering - although 40% of jewellery consumption relates to weddings, the appetite for gold in China goes beyond occasions and gift giving. 80% of consumers surveyed for this report planned to maintain or increase their spending on 24-carat gold jewellery over the next 12 months believing that gold will hold its long-term value and because they expect to have a higher level of disposable income. Chinese electronics demand for gold will see small gains in the next four years - industrial demand has grown with electronics being the key driver (climbing from 16 tonnes in 2003 to 66 tonnes in 2013). China is also the leading market for gold related patents such as the use of nanogold in healthcare. Official gold holdings in China totalled 1,054t at the end of 2013 making the country the world's sixth largest holder of bullion - based on this declared stock, gold represents 1% of China's total official reserves (down from a peak of almost 2% in 2012) due to the rapid growth of the country's foreign exchange holdings which reached around US$3.8 trillion at the end of 2013. Speculation continues as to whether the Chinese government has increased its gold holdings. China has gone from being a minor producer to the world's largest source of mined gold - in the past ten years production has doubled from 217 tonnes to 437 tonnes. (Courtesy: World Gold Council) Gold buying frenzy in China Compelling Reasons Why the Sino Nations' Citizens Will Increasingly Stampede Into Gold China's economy is one of the fastest growing in the world. China's per capita income is increasing apace with the country's economy. Local alternative investments do NOT compare with enviable returns in gold since 2001. Growth in China's money supply is the fastest of all major countries. The government of China encourages its citizens to invest in gold. China is today the number one producer and consumer of gold…worldwide. China must diversity its FOREX Risk as it owns more than $1.3 trillion in US Treasuries. National researches observe China covertly desires to eventually have a gold backed renminbi. China's total foreign reserves have less than 5% gold backing vs 74% of major world counties. China's exploding population will top 1,400,000,000 in not too distant future…world's largest. China now has FOUR GOLD ETFs with a total value of more than 1.9 billion yuan. Pervasive communication via the Internet will effectively market gold consumption. It is the considered opinion of this analyst that China is hell bent for leather to drive the price of gold to new all-time record levels for many years to come. By I. M. Vronsky Editor & Partner - Gold-Eagle www.gold-eagle.com Founder of GOLD-EAGLE in January 1997. Vronsky has over 40 years' experience in the international investment world, having cut his financial teeth in Wall Street as a Financial Analyst with White Weld.  He believes gold and silver will soon be recognized as legal tender in all 50 US states (Utah and Arizona having already passed laws to that effect). Vronsky speaks three languages with indifference:   English, Spanish and Brazilian Portuguese.  His education includes university degrees in Engineering, Liberal Arts and an MBA in International Business Administration – qualifying as Phi Beta Kappa for high scholastic achievement in all three. © 2014 Copyright I. M. Vronsky - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors. © 2005-2014 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication. Only logged in users are allowed to post comments. Register/ Log in

A "great time" to <b>invest</b> in Sunridge <b>Gold</b>, says <b>gold</b> maven Brien <b>...</b> Posted: 19 Aug 2014 07:46 AM PDT Tue 10:43 am by Deborah Bacal "All in all, I see Sunridge as a very likely double from current levels as it is either bought out or goes into production over the next 18 months or so," Lundin wrote in the August edition of his Gold Newsletter. () is seen as a likely candidate for a doubling in share price from current levels, according to precious metals expert Brien Lundin's Gold Newsletter. "All in all, I see Sunridge as a very likely double from current levels as it is either bought out or goes into production over the next 18 months or so," he wrote in the August edition.  "With much greater potential upside, it's an outstanding mix of lowered risk and near-term rewards and a buy." The company, which is advancing its Asmara project in Eritrea to production, has combined four advanced deposits under one feasibility study with the goal of staging production, with mining revenue from one stage helping to fund successive stages. As a result, the economics show some "fairly low capital costs to go into production," Lundin said. Indeed, Sunridge's management took the original feasibility study released in May 2013 back to the drawing board to rejig Asmara as a staged project, where low volume but high grade mining in the first stage would help pay for the capex for the larger plant required for the bulk of the mine life.  The revisions lowered the peak capex funding requirement by $140 million, increased pre-tax net present value by $280 million and IRR by 7 percent, making Asmara a much more attractive project. The new model yielded a net present value of US$692 million at the project, and an IRR of 34 percent, using a 10 percent discount rate.  The company anticipates full production by 2018. The project, which has a three phase start-up plan outlined beginning with high grade copper and gold, is pegged to produce an average annual rate of 65 million pounds of copper, 184 million pounds of zinc, 42,000 ounces of gold and 1 million ounces of silver over the first eight years.  The first phase is slated to begin late next year provided the mining license is issued when expected, and will have an initial capex cost of $46 million. Lundin also highlighted key de-risking steps for the project that Sunridge has taken, including the shareholder's agreement with the Eritrean National Mining Corporation (ENAMCO), along with an initial $2 million payment to Sunridge as part of an $18.3 million consideration for ENAMCO's portion of the asset. The Eritrean company will also provide US$6 million to the new operating company governing the project, plus one third of all expenses going forward. The project will be owned by the Asmara Mining Share Company, which will be held 60 percent by Sunridge and 40 percent by ENAMCO, split between a 30 percent participating interest and a 10 percent stake that will be carried to production. "With these capital contributions and the feasibility study using phased development to fund ultimate capital costs, Sunridge should have a clear path to production next year without the need for any additional equity financings," wrote Lundin in his newsletter. Though Lundin notes that the junior company has "a lot of stock out", he says the current share structure is "about right" for a company funded to production for a major project. Any additional necessary financing, he adds, would be for project expansion, and would likely compromise debt and/or offtake agreements.  "On the classic path of a project from discovery to production, Sunridge is now at the lowest valuation level, pre-development and rising to production. "Thus, this is a great time to invest," Lundin said, adding that it is very likely Sunridge will be bought out now that most of the risk involved has been eliminated and as the company rapidly moves towards production. The gold analyst lists Chinese groups as potential takeover candidates, as well as (TSE:NSU), which has over $400 million in cash and owns the Bisha mine in Eritrea.

<b>How To Invest in Gold</b> - Wego-oman Posted: 03 Aug 2014 11:03 PM PDT posted on  August 4, 2014 by admin Filed under  Uncategorized The diversified portfolio has a small place within the gold market. For some investing in gold means holding gold coins. Some speculators purchase gold contact futures on the commodity exchange. Future contracts are dangerous since you are betting that the value of gold will go greater in the future. The contract requires a relatively small up entrance fee, however there will be each day fluctuations that require you will have funds to back the dips within the worth of every day gold. The reasons traders have been excited by gold is that the old reasoning was that if the stock market was down the gold market was typically up. This reasoning has develop into a risk, however not an axiom of the current marketplace. The weak spot within the dollar typically brings a surge in the worth of gold. The present worth for gold is within the range of $670. Costs have fluctuated inside a spread of $664 and the current excessive of $672. Traders suppose gold may easily go as excessive as $1,000 an ounce. Investing in gold stocks and precious steel index funds may be bought by way of a stock broker. A stock broker specializing in this space is very important as a result of the investment wants savvy investment advice. Most of the bigger brokerage homes have individuals which are specialized within the area of commodities and precious metal stocks. There are certain worldwide gold shares which are noteworthy. A Canadian based international participant in the gold market is Agnico-Eagle Mines. It trades on the New York Stock Alternate and the Toronto Inventory Alternate underneath the inventory ticker AEM. The inventory can also be offered on the Frankfurt Inventory Exchange. This company has more than a thirty yr historical past within the manufacturing of gold. For the reason that Nineteen Seventies AEM has produced over 4 million ounces of gold. The corporate is international and has operations in Canada, United States, Mexico, Sweden and Finland. Different noteworthy gold shares embody; Barrick Gold Corp, Goldcorp Inc., Kinross Gold Corp., and Newmont Mining. All of those gold stocks are presently buying and selling on the upside, however it is advisable for all buyers to verify these shares fit your investment danger potential. In recent years the price of gold has been as little as the $450 an ounce range. Because the late Seventies gold has made large income for holders of gold. The key to owning gold is to know the various resistance factors and to evaluate the worldwide marketplace for using gold. It's used primarily in jewellery manufacturing and different forms of manufacturing. At the moment in India there is a small slow down in using gold for jewellery making. The same applies to a level in China. Whether it's enough of a decelerate to impact the price of gold is uncertain. Traders who trade in gold ought to seek the advice of an analyst that can factor in all the assorted facets that effect the value of gold. Should you own gold as a hedge against a weak dollar you should search for any strengthening within the dollar. The necessary thing to recollect is to gage your investment in gold to a degree that you're comfortable. In case you purchased spot gold at $600 an ounce, you may contemplate a rise to $720 a very good profit. The trip to $1,000 an ounce may be bumpy and there is no telling when it can reach that degree if it does as speculators have gambled. There are quite a few gold mining shares on the market and if you're enthusiastic about a small investment you can find these stocks in the $5 to $12 vary The smaller gold mining stocks do carry a risk as a result of an excessive amount of overhead goes into making a mining firm profitable. The vary of threat and amount you resolve to put money into gold is a personal choice. It's always advisable to seek the professional advise of a stock professional or commodity professional before leaping into this market. One other sage piece of advise I learned is to trust my sense of cashing out before the price of gold drops considerably on account of outside pressures or manipulations. visit here for gold bullion wealth online

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