China Gets the Picture!

Data courtesy of the World Gold Council.

The number of gold savings accounts launched by the Industrial and Commercial Bank of China Ltd. only a year ago, has grown beyond 1 million without much public relations or marketing, “which is an extraordinary pace of demand growth,” said Martin Hennecke, associate director at Tyche Group in Hong Kong

Wake up and smell the coffee, the Chinese government doesn’t change an almost century long policy of not allowing citizens to own gold and silver with out good reason. Maybe they sense the growing global distrust if US policy makers and the FEDs willingness to print trillions of USD to serve as the “lender of last resort” as the Chinese themselves grow weary of US debt and Treasuries.

It escapes me when over a billion Chinese citizens, who have a 30% average savings ratio, rapidly move to exploit the option of using gold and silver as a more stable method of wealth preservation over a traditional savings accounts and yet less than 3% of Americans who have had this option at their disposal for over 40 years fail to see it’s benefit? The world is changing before your eyes and those who resist that change will be rudely awakened when the true dire nature of the US economy comes into light in 2011.