Chinese Silver Demand Increasing
[url]http://silverinvestingnews.com/7683/silver-demand-in-china-booming.html[/url]
Analysts see growing demand for silver in China, as well as India, rising by
as much as 30 percent on the year. The increase in demand is also strong for Chinese
silver ‘Panda’ coins, prompting the Peoples Bank of China to double the maximum
issuance of coins for the year.
“howing the big pick up in demand for silver in China, the PBOC says that
it is doubling the maximum issuance of one ounce silver Panda coins from 3
million to 6 million. To emphasize this growth in demand the issuance in 2010
was 1.5 million,” reported
Lawrence Williams, for MineWeb.The growing demand for silver and
gold coins
underscores the concerns of the Chinese middle-class towards their economy. The
weak economic data worldwide may dampen the outlook for the industrial use of
silver; however, inflation concerns in China will most likely draw more
investors into the silver market.
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[url]http://silverinvestingnews.com/7752/china%E2%80%99s-inflation-problem-the-commodities-bubble-and-silver-prices.html[/url]
Many silver bugs are understandably gushing about what rising inflation in
China could mean for global
gold and silver prices, as precious metals are historically viewed as a
safe-haven during periods of high inflation. Even a recent article on
Silver Investing News discusses the potential upside for silver prices if
Chinese inflation problems should continue.
(..)
trillion, a figure China’s National Audit Office says can be paid back only by taking on more
debt. And of course, there’s that real estate bubble threatening to pop.Shilling, a seasoned economist, who was among the few who foresaw the U.S.
housing market meltdown and eventual global financial crisis, isn’t buying the
idea of ‘China as World Economic Panacea.’
“When someone expresses awe and admiration for China’s economic miracle, I’m
reminded of Japan in the late 1980s. Back then, many Americans believed they’d
soon be run out of business by Japanese firms or end up working for them,”
writesShilling. “Instead, Japan’s stock and real estate bubbles collapsed. Japan
entered a deflationary depression that continues today.”
(..)
the sometimes precious, sometimes industrial metal is behaving more like a
classic physical commodity market in its reactions to outside market pressures.
Commodities markets in general have been quite volatile after surging early on
in the second quarter of this year as the outlook for a global economic recovery
turns cloudy. There are fears economic growth is slowing in the US, Europe and
even Asia.
