3 Reasons Why China Wants Its Citizens To Own Precious Metals

"Due to China's huge size, its developing economy is having a growing influence on the globaleconomic system. One commodity that has been particularly strongly affected by Chinese popular demand is silver, as well as other precious metals like gold.

Not only has the Chinese government been moving toward holding precious metals in reserve as an alternative to paper currencies like the U.S. Dollar, it has also recently encouraged its citizens to own precious metals as a way to store their wealth in a valuable physical asset.

The following sections will discuss at least three reasons which come to mind that may be behind this official Chinese policy switch.

Reason #1: Controlling Inflation as the Chinese Economy Lands

Monetary policy is often aimed at keeping the population at ease, 'as they ease'. To help ensure a soft landing for the Chinese economy means assuming an inflationary monetary policy..."

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