Average Chinese investors buy gold as a hedge against inflation, according to a report in Tuesday's China Daily. Not that inflation has soared, but only about 4.5%. People who buy gold, even though prices fell to levels of support last week. However, a volatile stock market, and the limits to what the media and investors in the higher income can buy in the housing market have reduced high-flying investment opportunities in China.
The Chinese government has encouraged people to buy gold, the removal of an old law that prohibits public investment funds to buy it.The popularexchange marketed as SPDR Gold (GLD) ETF, and interest rates are very low, which makes it much easier and less costly for private investors to property.
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