WGC: Gold demand for the year 2010 reached a ten year high with annual demand of 3,812.2 tonnes. Bharat & China, together constituted to 51% of this demand.
Who & Why ?
China:
Central bank(ie Govt.) is buying to diversify foreign reserve by structural policy change.
This is very much needed coz the Chinese Govt. is in real trouble. After the financial crisis of 2008-09, it is well known that China's exposure in US treasury is very huge & when US economy will collapse it will take China along with it. Thus in order to partially protect itself China is running for Gold.
Recently its attitude towards Bharat has been a bit of concern, so in order to be prepared buying Gold is the best thing for Chinese Govt.
Bharat:
Mainly by people in form of jewellery for personal n marriage purpose. This is the result of its rich history n culture.
Sanatana Dharma has structured itself so that it protects its followers from the ruler. May the ruler be just or corrupt, the people will always succeed. In it the judicial, economic & social issues(old age, marriage, family planning) & many more are integrated at family level.
Europe:
European central banks have stopped Gold sales in the wake of the financial & European Sovereign Debt crisis.
Long Term views?
China:
Throught history its seen that when a Govt. holds Gold, it makes it unstable n more prone to going at war. China with its communist leaders is definitely a concern for Bharat.
Bharat: People are safe & will prosper and keep buying Gold. Only reason is its foundation 'Sanatana Dharma'.
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