Gold – Chinese?

We know gold is one of better investment options, but not all golds that will yield the same. Don’t buy another ounce of gold until you finish reading this!

In short, Chinese government has created a secret new gold investment and the last time the government did something like this, investors could have made more than 1,000% gains. China has gone crazy for gold.

In April, the government’s Foreign Exchange Agency announced the purchase of an additional 16 million ounces for state coffers. And recently, the National Geographic Magazine reported that for the first time China had surpassed the US as the buyer of gold jewelry. What has really gone unreported is that the Chinese government has created a gold investment that could dwarf the returns of gold bullion, ordinary gold stocks, and any other type of gold investment that you have heard of before.

In the late 1990s, the Chinese government created two similar investments – one to help the local insurance industry went up more than 600% in just a few years – China Life Insurance – the only company with a national license and the other one to aid the energy industry has gone up more than 100% over a similar period – China National Offshore Oil Corporation – with an exclusive right to explore, develop and produce oil with overseas partners as well PetroChina and Sinopec – another spin-off from the state-run monopoly.

And now they are doing for gold. Most investors don’t realize that China is now the world’s largest gold producer. They passed South Africa last year. China is one of the few countries in the world where known gold reserves are increasing, not shrinking. For essentially the past 50 years, no one was allowed to tough gold in China, except government and now is changing and in a hurry….

They realize gold is one of the only buy-and-hold investments in the world right now and they have nearly $2 trillion to spend, according to a recent report in The New York Times. The Ministry of Land and Resources is set to re-write the country’s mining laws, known as the Minerals and Resources Law to encourage local and foreign companies toe explore for and produce more gold.

The government has recently created the Shanghai Gold Exchange to allow anyone to trade gold on the open market. Also, that the government helped created and took nearly 50% ownership stake in a very small gold mining company as well as a new company that formed by key members of China’s National Non-Ferrous Metals Industry Corporation – a state-owned company.