The Chinese government acknowledged gold as a strategic asset in 2000, when it included the establishment of an open gold market in its five year economic plan. Since then China has come to play a significant role in the international gold market as it strives to develop and advance all aspects of the industry and gold’s role in the domestic market.
The WGC commented on the possibility that China may beat India as top gold buyer. In the second quarter India bought 310 tons compared to China’s 294.6 tons, interesting to note given the additional import charges facing Indian buyers.
The reason gold bullion investment specifically within the alternative asset class will benefit investors is due to gold’s historically proven role as a diversifier in portfolios. Research just out from the WGC once shows what gold can add to a portfolio during good and bad times.
Most investors and savers should hold up to 10% of their investible assets and personal savings in physical gold and for some high-net-worth investors a greater percentage allocation to gold may be appropriate.