The Golden Dragon Awakes

Gold price continue loses after gloomy chines data

The largest country in the world in terms of area and population for the last few decades now holds the second largest economy in the world in terms of GDP and PPP. It’s not a surprise for China to be the current world’s fastest growing economic super power that rivals the U.S. in terms of gold production, trading and manufacturing. China may take the throne of the world economy in merely a decade depending on the U.S. economic policies and how the Chinese government will proceed in their economic plans the next few years. This race would definitely affect the gold market.

The Serpent on the Move

This Chinese Year, the year of the water snake, is commonly anticipated for China that it will rise even more this year in terms of economic power despite the great recession now affecting Europe and the U.S. and crippling their growth. That may be due to the Chinese businessmen psychology affected by their homeland culture, as many businessmen from Greater China confessed to seek fortune tellers and spend thousands of dollars consulting Feng Shui experts.
The water snake of the Chinese myths is believed to symbolize intelligent and flexibility, for the water may be weak and fluid, or it may flood with unstoppable power. By applying this general principal for the superstitious Chinese mentality, it can be safely assumed that China will climb the economic ladder either with raw explosive power or flexibility in managing the world global markets, hypothetically speaking.

The Golden Dragon Rises

Gold production in China rose sharply in the past few years to overtake South Africa, the leader of gold production for the last century, with more than 200 tons per year in 2012. The scheduled gold mining operations in china for 2012 with India starting along, with rumors of the Chinese gold ETFs being offered for sale may indicate the potential leading role of China in the gold market this year. The Chinese government recently banning luxury items advertisement in the national television, which might lead us to presume that the Chinese government is planning in entering a new era of expanding its influence by trading with the rest of the world on higher scale.
This assumption may be backed with the increasing influence of China in Africa for controlling the minerals production, the increase of the Chinese imports and exports generally and gold specially, and the decline in the developed world market share in trading. Will the Chinese dragon be able to wake from its long sleep and bulls the world gold market this year? It is supposed to have a good year despite the general atmosphere of recession that already touched the gold, but the future is yet to be known.