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China’s Hunts Gold Overseas
Be prepared for the next great transfer of wealth. Buy physical silver and storable food.
livetradingnews.com / December 10, 2012 — Updated December 10, 2012 17:18 HKT
After years of scooping big overseas energy and industrial metal assets, China is gaining momentum in another commodity sector: gold is the latest in a series of recent moves by Chinese gold producers to plug a domestic supply shortfall, efforts that amount to a bet on sustained strength in the gold market even though the economic slowdown is dragging down prices.
For the world’s second-largest economy, fundamental factors starkly favor an overseas push. China produced around 360 metric tons of gold last year but consumed nearly 800 tons.
That deal gives it a foothold in the Australian market, the world’s second-largest source of gold output after China itself.
In 2011, Zijin bought 60% of Kazakhstan-based miner Altynken, which has access to a gold mine in Kyrgyzstan.
Since 2008, Chinese companies have completed 10 $20-million-plus acquisitions of Australian gold assets, worth a combined $1.6 billion, according to Dealogic. Half were initiated since last year.
Chinese gold players are definitely on the hunt for external resources, in part because the domestic quality of gold isn’t as good, and also because they want access to superior gold-mining technology
Thanks to BrotherJohnF
2012-12-10 04:06:28
Source: http://silveristhenew.com/2012/12/10/chinas-hunts-gold-overseas/
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