Simon Black, former co-editor of Without Borders has some time and good connections in China and he has been checking out the gold buying in China.
You can buy gold in China at any bank– even tiny banks in tier-3 cities sell gold. More importantly, however, the government is setting up official Chinese Mint stores all over the country.
He reports that Chinese are buying gold like crazy. And they pay with cash.
Offered in mint bars (5 grams to 1 kilogram), the bars are all serialized and 9999 purity, the same as you would get from Switzerland. They are also certified by the gold exchange, which validates the quality. There is no tax, and the premium runs 10 Renminbi per gram, or roughly $30 (US) per ounce (that’s a very good deal, about 3%).
It’s no wonder the powers that be can’t keep gold under $1000 per ounce.
Buying gold is great, but storage is one issue and lack of leverage is another. There is a time and place for both.
For leverage, you need to be in gold mining stocks, including some Canadian junior resource stocks. My pick for getting information on was to profit in mining stocks is the ultra cheap Casey’s Gold and Resource Report.
If you really want to reach for the brass ring, also go with the International Speculator, but it is NOT cheap – just well WORTH it!
