New York, NY (PressExposure) April 12, 2010 -- "Mann International" analysts have welcome a report from the World Gold Council (WGC) which predicts that China's gold mines would not be able to keep pace with demand from jewelry sector and the nation's central bank and could well be exhausted inside 6 years.
China's gold reserves currently account for less than 2% of its estimated $2.4 trillion of foreign currency reserves and "Mann International" believes that a mere doubling of this percentage would be sufficient to propel the price of gold to new record highs.
Despite comments from a high-ranking Chinese official which suggest that China does not consider gold to be a primary investment as far as its reserves are concerned, the state-run television networks have been encouraging Chinese to buy gold and silver as "stable investments".
"Mann International" cited the fact that China remains the world's largest producer of gold as evidence of the importance of the precious metal to the nation as a whole. It is perceived as real money and as a store of value in Asian countries, a perception not shared so readily in Western economies.
Nevertheless, "Mann International" suggested that the perception of gold in developed economies is far less relevant than it was in the past given the fact that much of the West's wealth is now in the emerging economies.