How The Chinese Buy Gold?

Tyler Durden's picture

880 grams at a time...

 

 

As China News reports, in a gold shop in Taiyuan, Shanxi Province, a "tyrant female" (Google Translate must have loved that one) bought more than 880 grams of gold jewelry. Lunch boxes were used to weigh the gold and it left other shoppers speechless with admiration.

Reporters on the scene saw the woman buy gold jewelry and diverse, there are a dozen light gold ring, the rest of the gold necklaces, gold pendants and other a lot. The staff at the time of weighing a total of more than 880 grams of gold jewelery boxes accounted for nearly one-third the size of the load box, stacked full of gold so that shoppers around again and again speechless.

Faced with the question, "why buy gold", Ms. "buy gold" did not want to say, but suggsted for her "own use."

 

Perhaps she read Grant Williams anti-"Anti-Gold-Idiots" discussion this week:

"So these anti-gold idiots are just that, idiots, or else they have the memory of a goldfish, because currencies come and currencies go, as sure as night follows day. It is the natural order of things. And as you can see, it's not about trading gold to get rich or getting long gold or buying one by two call spreads or getting fancy, it literally is about protecting yourself in the end. It's not like Williams got rich. He just stayed rich. Everyone else got poor."

When Western central bankers rubbish gold as a "barbarous relic" or, as in the case of Ben Bernanke shortly before he started his job at The Brookings Institution left office in January, admit to a complete lack of understanding of it, does it not strike you as strange that, having accumulated significant stockpiles of gold over the years, they aren't in a hurry to swap any of it for paper money (well, with the notable exception perhaps of the United Kingdom, thanks to the antics of Gordon Brown, King of the Idiot Chancellors)?

It shouldn't.

Gold is held by Western central banks for exactly the same reason individuals ought to hold it: protection.

Central banks are accumulating gold because it cannot go BANG! like fiat currencies do.

Individuals should be doing the same — not being sidetracked by the distractions.

It's not about price. The story Jared shared with us demonstrates that beyond any doubt.

If you own gold, it will do all the heavy lifting for you when the time comes