ADVFN Logo

We could not find any results for:
Make sure your spelling is correct or try broadening your search.

Trending Now

Toplists

It looks like you aren't logged in.
Click the button below to log in and view your recent history.

Hot Features

Registration Strip Icon for charts Register for streaming realtime charts, analysis tools, and prices.

China "economic downside" (A fresh view)

Share On Facebook
share on Linkedin
Print

China and its apparent economic downturn could in fact simply be a ploy. Find out why below.

© Image copyright numb3r

 

China has always been a secretive government and yet we hear from them that their economy is struggling and we believe this openly.

China has been buying gold at a record rate and has always kept the exact amount being bought relatively secret by only revealing the figures once a year. (they owned 1,054 tons as of April 2015)

Its not hard to work out that if China fell into economic turmoil at a time when Greece is also struggling then the market value of gold would rise accordingly.

Looking at companies like Huntsworth who have recently (last few years) broke into the Chinese economy through Blue Focus, you would expect a reduction in contracts in that area. This is not the case and in fact HNT is thriving contrary to the obvious downside it should be facing in its aim of growth.

The fact is we can not fully know what state the Chinese economy is in and for all we know it is in fact thriving.

It is with this in mind I put it to you that China is in fact using their economy and its alleged downside as a tool to increase gold prices in which they would profit should they sell.

So what does this mean for investors.

Regardless of whether I am right or wrong, Gold is likely to suffer. If China is struggling they will be less bullish on gold as they will have less funds to buy with.

If China is playing the price of Gold then you would expect selling to occur and as such gold would again take a tumble.

I have always avoided gold companies anyway as I got stung once with AVM and know all to well the costs involved in extraction V the potential price you can get for the end product.

To be completely blunt, Gold companies are a red flag until gold recovers considerably, I wouldn’t even look at them until such time as gold is economical viable to extract and trust me that time is not now.

I fully expect that soon both the Greece and China problems will faze out but until they do you must understand that most shares will see more red days than blue. My new incentive #DayTradeMagic will aim to help people make money when everyone else is losing theirs.

You are all welcome to follow this new incentive via twitter @AKW_AIM and if you have any questions feel free to DM me.

All the best and I hope you all enjoyed this.

As always:

All in my opinion and not to be taken as fact nor advice.

Always seek professional advice before investing in any company.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Comments are closed

 
Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com