The BBC interviewed Marcus Grubb, the Managing Director for Investment at the World Gold Council (WGC), about the growing demand for gold in China. Earlier this month, the WGC released a new in-depth research report that showed gold demand in China would increase another 25% by 2017. Grubb explains why gold is such an essential asset not only to the Chinese, but to any investor who wants to avoid the risks of speculative investments and currency debasement.
“Basically, gold plays a role as a diversifier… a way of keeping their money safe from inflation, from currency debasement, from the vagaries of other asset markets… Remember, gold is priced in many different currencies all over the world at the same time. The yuan has been gradually appreciating against most currencies… So if you look at gold in Chinese terms, to the Chinese consumer, it will certainly look less volatile than it does, in say, dollar terms.”
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