March 16, 2010

The signals coming from Beijing about the yuan have been mixed. Who should investors listen to? Whoever ranks highest in the party. That's not the central bank.

China retail speculation adds risks to gold price

October 9, 2009

goldAs gold prices surge to a new record, China’s retail investors are trading more of the yellow metal, often using borrowed money. This is further evidence that recent high prices may not be sustained.
Like investors around the world, Chinese individuals are buying gold because they are worried about inflation. After all, Beijing has already pumped an unprecedented amount of money into the system, sending asset prices higher. But Chinese retail investors are also known for their herd behaviour. Despite the recent sharp rise in gold prices, many have decided to jump in.