subject: Gold101 - China helps fuel surge in commodities markets [print this page] Author: Superior Gold Group Author: Superior Gold Group
Signs of an improving economy in China may be one more reason for gold and silver investors to continue adding to their holdings.
A report in the Christian Science Monitor notes that countries that export raw materials have reason for optimism in light of December's statistics showing that Chinese exports rose 18 percent on a year-over-year basis after 13 previous months of decline. The newspaper added that Chinese imports rose in December by a 56 percent margin.
"It seems very clear that what we are seeing are basically imports of raw materials and capital goods. These are all investment-related," the newspaper quoted Arthur Kroeber of Dragonomics as saying.
Also this week, various media outlets reported that 2009 statistics had left China as the world's top exporter of manufactured goods, replacing Germany in that category. A report in the Washington Post noted that later this year, China is also expected to overtake Japan as the world's second-largest economy.
The Post also noted that part of China's surge in commodities buying has been fueled by its various infrastructure projects brought on by its economic stimulus programs. Another reason to be optimistic about the state of commodity markets this year is lingering instability in U.S. stock markets and the uncertain pace of the recovery, which remains in its early phases. The U.S. dollar has also been experiencing uncertain momentum, which is often a factor that bodes well for commodities like gold and silver.
Investors may also be inclined to consider gold and silver, as well as other commodities in light of questions about when and if the Federal Reserve will raise interest rates in response to what is seen as an improving overall economy.About the Author:
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