China Gold

Pinnacle Digest writes:

China recently announced that its gold output soared 10%, year over year, to 80.8 tons in Q1 2012. This is a sign of the times as China fights to remain the largest producer of gold in the world. It's no wonder China has emphasized its production of gold amidst record monetary stimulus and an increasing global money supply.

What's perhaps most significant about the country’s economy is that its domestic retail sales expanded recently, tallying an impressive 14.1% year over year increase. Our team at Pinnacle has discussed the importance of China's middle class and its need to rise up and become the consumer China is losing in the US and EU. This is a valuable trend to monitor as it will eventually be a critical factor to China’s currency independence.

Paul Ebeling examines the facts associated with China's continued importance on gold production. China's monetary policy continues to be accommodative as its government attempts to stimulate growth.

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