by Bill Holter, Miles Franklin:
When I first saw this survey of Chinese consumers I had to take a step back and wonder exactly “who” did it. Much to my surprise, the WGC (World Gold Council) who is more “anti-gold” than any group or agency that I know of was the culprit. If they say that 25% of Chinese consumers plan to buy 24kt gold or jewelry in the next 12 months…you can bet that the real number is much higher because as long as I’ve been following gold, the WGC has done nothing but steer people away from it. In my opinion they have consistently underestimated global demand and overestimated global supply since I have followed them.
That said, let’s have some fun and do a little bit of math on the back of a “WGC” napkin. OK, so, there are 1.3 billion Chinese citizens and yes I know not all of them can buy even 1/10th of an ounce of gold but let’s go from there. 1.3 billion times 25% equals 325 million (about the size of the U.S.). If each Chinese citizen according the survey (25%) were to buy just 1/4 of 1 ounce of gold then approximately 80 million ounces of gold would be taken off of the market (320 million x 1/4 ounce= 80 million). Umm, does the figure “80 million” ring a bell for you? It should, “80 million” is more or less the figure of ALL gold ounces mined in 1 year on the entire planet.
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