Watch what UBS has to say ... found in my e-mail tray
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And (FWIW)UBS waxes bullish on Chinese metals demand...
Monday, December 10, 2007 6:19:52 AM
Author: John Reade, Robin Bhar
UBS Metals Daily
China's wealthiest investors set for gold spree
China's wealthiest investors are on the brink of ploughing as much as $68 billion into gold markets as they take profits from roaring share prices and steer clear of property, a top fund manager and bullion bull says. Wang Weilie, a pale, bespectacled 40-something who manages over 1 billion yuan ($135 million) on the Shanghai Gold Exchange on behalf of himself and clients, says the so-called "Zhejiang clique" are ready to pounce after Beijing opens up spot market bullion trading and a futures contract launches early next year. After amassing an estimated 3 trillion yuan ($400 billion) from investing in red-hot real estate and stock markets which have risen five-fold in the past two years, the wealthy group from eastern China is looking for the next sure bet. Wang says that's gold, and expects the amount of Chinese capital invested in the bullion market to soar 100-fold to some 500 billion yuan ($67.5 billion) in the next two years -- a sum that could catapult China ahead of India as the world's top buyer. "We all agreed that upside room on stocks was limited, as was upside on property prices. But the gold price has only increased minimally, even after 20 years of China's reform and market opening," Wang told Reuters during a lunch with three business partners in Lujiazui, Shanghai's financial hub.
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Recommendation: get in front of the line! hard buy, then again, then once more, then one more round for the road, but buy in all cases, before Chinese private citizens pile in to increase national gold holdings (if gold stays at current price, which it will most definitely not) by the equivalent of 4 GLD current holdings (GLD holds about equal amount as People's Bank of China, 600 metric tonnes, I believe) - USD 1,600, here we go, and USD 3,200, watch out, barabrians at the gate, over the walls, into the palace, down to the keep
the differece between china accumulation vs usa/japan speculation is that china accumulation will mostly be via physical, i suspect |
