Chinese Way of Life Success

China has a strategy to achieve greatness.

If there are countries that seem most anticipation of a possible collapse of the world financial system today is the country the People's Republic of China. Most populous country in the world, secretly, continued to take the most effective step: switch kekayannya on real assets, namely gold (and silver). Recently the Chinese government strongly recommends that every Chinese person aside at least 5% of savings in the form of gold.

If we remember the official policy of the Chinese Government against gold until about a decade before the step above is very radical. Officially, until just before the "Krismon" Asian Landmarks and 1997, the Chinese government is blocking the people to own gold. Only those who obtain certain permits from the government, such as gold craftsmen, can buy and own gold.

In addition, the Chinese government itself, constantly adding gold stocks, to transfer wealth reserves. Besides gold, of course, silver as a bimetallic pair, also more favored by the government and the Chinese people. As written by Jeff Clark, an analyst with gold and silver from Casey Research, the Chinese people, many queuing at banks, post offices, and official gold printing company that was founded, to buy gold and silver.

Jeff Clark also pointed to the fact that the sting interesting, as presented in the two graphs below.

First, in the year 2008, China produces 9:07 million ounces of gold, beyond the countries largest gold producing other. Production levels increased, while other countries is decreasing.

Second, more than half a century before China is a country with per capita gold consumption is lowest. This year China is expected demand will exceed the demand for gold will be India. This means they will be retail gold buyers in the world no 1.

Third, the Chinese government's use of reserves to buy gold devisanya in bigger portions. Last April, they unexpectedly announced that they had bought gold, since 2003, and increase gold reserves up to 76%, to 33,886 million ounces. Currently the Chinese government's control of the gold more than 30 times the amount they had in 1990. Cinalah which will be the biggest buyer of the sale of 12.9 million ounces of gold reserves of the IMF.



And not just a matter of production and consumption of noble metal present only where the power of China. Jeff further analyze the Chinese forces to maneuver labih far. The following graph shows that, although China is on the order of 7 penimbun gold, the gold portion of the existing reserves in the world today, still very small (less than 2%). What would happen if China raises its reserves, up to 5%, or 10%? Indeed, to become champion of the gold penimbun, China should buy as much gold joint owned by France, Italy, and Germany.

Can China do this? The following analysis of Jeff Clark.
In the gold price of 1.000 USD to boost China's reserves to 5% needed funds for 55.3 billion USD; to 10% needed $ 144.4 billion USD; to become number 1 takes $ 227.6 billion USD.

China's foreign reserves now close to 2.3 trillion USD, 70% of it, about 1.6 trillion USD, the shape of the U.S. dollar. Thus, the amount of funds required China to become world champion gold, is relatively small. China did not have a problem with the U.S. dollar banknotes. In fact China's gold reserves continued to increase. Purchase constantly occur, both by government and by ordinary citizens. It is estimated that approximately 9.6 million ounces of gold in China will be printed into coins and medals this year, 2009. With the price of 1000 USD / ounce this effort requires only 9.5 billion USD, only about 30% of capital in China.

Interesting we know the situation for silver. Total production this year expected to reach 35 million ounces, equivalent to 625 million USD, or just 1.7% of capital available. In other words, outside of the consumption needs of the population will goods other household, consumption for gold and silver will still be enlarged. This tendency is also supported by the fact that demographic in China where the middle class also increased, up to 70% in 2020. So, in the next ten years, gold and silver consumption in China will continue to increase as well.



Thus, in the middle of last crawled world gold prices lately, should we learn from this Chinese strategy. From the graph above we can see the level of Indonesia's gold production continued to fall. While the views of Indonesian gold reserves ranked only 37th, with gold reserves just 73.1 tonnes (See also: One Family, One Dinar).

However, do not worry, because there was no word late in dealing with gold and silver. With the wide circulation of the gold dinar and silver dirham through Wakala network in this country, our society has ample opportunity to strengthen themselves. Duty each of us to realize, convincing, and invite other people, to begin to save this nation's assets.

With evidence Dinar and Dirham strength we've got, we can set a number far higher than that used by the Chinese government (5%) above. For example, make at least 50% of the savings and reserves of our property as gold dinars and silver dirhams. Possess and use the dinar and dirham.

By: Zaim Saidi - Director Wakala Induk Nusantara

Source: http://www.wakalanusantara.com