China's Young People Are Buying Gold

China’s young people are buying gold for the same reasons that their parents are buying gold, as are many other people in China and other places. And there are many reasons for this.Show more

They see that the real estate market in China is continuing to slide and has not found a bottom. The stock and bond markets are weak. The labor market in China is weak and young people are having trouble finding work, or, if they do, they are not the jobs they had planned for. The Chinese currency, the yuan, has been weak against other currencies. Chinese banks offer very low interest on deposits. Interest rate on bank deposits ranges from 1.5% to 1.8%.

Furthermore, military conflicts such as the war in the Ukraine, and the Israeli-Palestinian conflict, have made gold more attractive. Gold is a safe haven. It is seen as a safe investment in times of geopolitical uncertainties.

They are aware that the U.S. Federal Reserve has announced that it does not intend to raise interest rates further. That has caused the dollar to weaken. Many observers are expecting that in a few months the Federal Reserve will begin to lower interest rates. The Chinese are also aware, as are many Americans, that the Federal Reserve is the problem. Fed interest rate and monetary policies are the cause of inflation.

The evolution of world governments and the efforts to drift towards a unified global system is a topic of much debate and concern. The implications of such a shift, especially on the economic front, are profound. This site aims to present the Global Macro Digest's ® perspective on the matter.

The world of investing is constantly changing. World governments are attempting to move toward a new world order of big globalist government and higher taxes. This is leading to profound changes in the organization of social systems and global political power. Big government and high taxes lead to economic stagnation and greater poverty. It also leads to great volatility in the financial markets.

Investors need to adapt to these developments The Global Macro Digest ® is dedicated to delivering valuable insights into the markets to allow investors to achieve a better understanding of the global investing environment and to make better informed investment decisions.