In many parts of the world the Chinese company’s recently acquired gold mines on a large scale. Thus, the country has further fuelled speculation about the creation of the yuan, backed by gold, writes the business newspaper Deutsche Wirtschafts Nachrichten.
According to experts, gold is a natural resource, but it is also a precious monetary metal, is useful far beyond its industrial applications. Private mines are an effective way of ensuring future access to gold. As rising prices increases the cost of gold in the earth. In 2019 on mergers and acquisitions of gold mining companies around the world spent a record of 30.5 billion U.S. dollars.
Over the last decade, despite the fact that the price of gold was lower Chinese gold mining companies sought to acquire gold mines and mining companies just as China has done this with many other metals and natural resources. At the same time China is not going to resell the assets in search of profits.
According to the portal outsiderclub.com Chinese gold companies are actively looking for international gold assets to ensure their future production and to reduce or replace China’s dependence on U.S. dollars, which partially support the yuan. In early October, 2019, the Chinese company China National Gold, Shandong Gold and Zijin Mining made an attempt to purchase canadian gold mining company Iamgold (IAG), but the deal never took place. China already is the world’s leading gold-mining country. In 2018, the country produced 12 percent of the 3 332 tons of gold in the world.
the Expert on precious metals DZ Bank Gabor Vogel discusses buying gold as a proof of “loss of confidence in such an important major currencies like the dollar.” According to him, is a way to reduce dependence and at the same time, to find protection in tangible assets.
Beijing trusts more gold than any other currency. While the Chinese government work in three areas: the Central Bank enters the world market, the government encourages citizens to private investments in gold and at the same time increasing production at its own mines, the newspaper Handelsblatt.
