China And India Have Taken Notice Of The Gold And Silver Market
In the past, the dollar has always been the world currency and other nations have made it a priority to purchase and hold US dollars as a secure financial investment. China and India are two examples of rapidly developing countries that have in the past invested in large quantities of US dollars and other strong paper currencies.
China And India Are Shedding Paper Currency In Exchange For Gold And Silver
With the current worldwide economic decline, the nations of China and India are quickly trying to rid themselves of the mountain of paper currency they are sitting on before it further declines in value. They have instead turned to investing their resources into something with tangible value that is certain to take off in the near future. In recent years, China made it legal for its citizens to purchase and hold gold. Currently, China is the second leading nation in gold imports with India still maintaining its number one position.
China’s Emerging Middle Class Is Buying Up Silver
In July, 2011 China began allowing silver exchange on the Hong Kong Mercantile Exchange. Now, Asian investors have access to the silver market, which opens up a whole new venue of investments. As these rising countries give birth to a thriving middle class, silver is a tangible and affordable option for the individual investor who otherwise wouldn’t be able to afford the investment in gold per ounce. The Asian middle class is beginning to recognize that silver is an affordable option that protects them against inflation as the world currencies begin to fail.
With The Emerging Middle Class Of China And India Getting Interested In Silver We Could See A Major Supply And Demand Crisis
Currently, there is less than a billion ounces of silver in the world reserves. When you figure the vast population of India and China, and the fact that they have a 35% savings rate compared to the 1% savings rate in the US we are sure to see silver supplies begin to dwindle. Very quickly demand will outweigh supply and there will be a dramatic increase on the price of silver.
Americans need to wake up and realize that many countries have already recognized that paper currencies are failing. We would be wise to follow suit, and diversify investments out of paper and into tangible gold and silver before the supply and demand crisis pushes precious metal prices to all new highs. For more information on how to diversify in precious metals visit redhawkgoldandsilver.com