- ITM Trading Streamed live on Jun 21, 2019
Links to slides and sources: https://www.itmtrading.com/blog/gold-…
China is the 2nd largest economy and now has the second largest stock market and the world is invited to participate. But China has a different investment culture than most other markets. Some liken the Chinese stock markets to the “wild west” when gambling and outlaws reigned. While the Chinese people are gambling in the markets, they are also accumulating gold and the premiums are rising. Because, while there is an unlimited amount of derivative gold (fictional gold), there is a finite amount of physical. When demand exceeds supply, prices go up. When spot gold is manipulated down, the premium on the physical only markets go up to compensate. While they’ll trade stocks, they hold physical gold, which is the true portfolio diversifier.