Some economists wary of Chinese economic trends

- By John March
Some investors have been optimistically looking to emerging nations like China and India to help the global recovery gain momentum in the coming months.

This is because both countries have seen their gross domestic product continue to expand in recent quarters, even as the recession held back growth in much of the rest of the world. An emerging middle class in both nations is seen as having the potential to provide new consumer spending markets for corporations.

Also, manufacturing activity, particularly in China, could help sustain the price of some commodities and strategic metals as economic conditions improve.

However, some economists are warning against becoming overly optimistic about this scenario. In fact, recent months have seen increased concern that China's economy could turn out to be a bubble, citing real estate prices in Beijing and heavy lending activity by banks that could turn out to be ill-advised. In fact, China's government appeared to respond to such concerns earlier this year when it took steps to scale back lending activity.

More recently, a report in the UK's Telegraph newspaper warned that "China's banks are veering out of control," while predicting that the country's "half-reformed" economy will not be able to absorb some $600 billion in loans issued since December.

The Telegraph cited another potential disturbing trend for investors where Shanghai's composite index has risen 70 percent in the past six months while the country's imports have fallen 25 percent over the past year.

The newspaper also noted that 40 percent of China's economy consists of exports, which happened to fall 26 percent in May. Another point cited the increasing tendency of U.S. consumers to save their money, which does not bode well for a sudden and dramatic improvement to China's export figures.

Another red flag for China is the ongoing debt crisis in the euro zone, since this could turn out to be one more blow to its export sector. The euro has fallen considerably in recent weeks, which means consumers could find themselves paying more for Chinese goods at a time when their respective governments are implementing significant new austerity measures.

If Chinese economic growth turns out to be more of an illusion than a reality, it would have a substantial impact on the global economy. Fortunately however, investors have long known that times like these often call for the stability that dealer gold and other precious metals can offer.


John March is the Chief Technical Officer for the Superior Gold Group, his financial insights on precious metals are sought after by Gold & Silver Dealers globally.

If you have any questions about how to buy gold coins, and want to learn how to grow your portfolio call 888.374.4032 or write to askjohn@gold101.com.
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Stability of Social Security may be questionable

Friday, February 5, 2010
The future of the Social Security system could be shaky.
- By Bruce Sands
Investors have been consulting with gold and silver dealers for years because of concern about economic instability and the long-term prospects for its recovery.

However, a recent report is giving investors a whole new reason to worry about the state of their finances heading into the future.

An article from Fortune Magazine highlights data from the Congressional Budget Office showing that for the first time in more than two decades, the Social Security system is receiving less in taxes than it distributes in benefits, which invites speculation about the long-term future of federal entitlement programs.

The magazine notes that this raises the danger that as a result, Social Security could require a massive government bailout not unlike the massive infusions of cash that were provided to a number of major corporations as the recession was getting underway.

If the U.S. was to default on its debt obligations or to pay for its largest entitlement programs, the ensuing financial ramifications would likely cause great difficulty and potential chaos in the world markets. With that in mind, investing in precious metals like gold and silver is a sound safeguard against possible setbacks in the future.


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Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.
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Shaky global economy an opportunity to invest in dealer gold

Wednesday, January 27, 2010
The economic recovery may not be working out as well as some had hoped.
- By John March
Despite the widespread perception that the worldwide recession is over, there are still a number of factors that could result in unpredictable economic conditions in the coming months, from concerns about inflation and the strength of the dollar to the threat of a double-dip recession.

In fact, economists attending the World Economic Forum annual meeting this month expressed concern that policymakers around the world are so focused on certain issues in the financial world that they are overlooking other crucial matters.

An announcement from the forum cited various economists warning that high-profile issues like executive compensation are getting extra attention while other matters, such as risk management and transparency, may not get sufficient action.

Economist Nouriel Roubini was quoted as citing the risk of a double-dip recession because of weak labor markets and poor credit conditions. He also suggested that emerging economies could do better in the short term than advanced ones, while warning that emerging economies could reduce their growth potential by adopting the same regulatory measures as developed nations.

With little certainty about what is next for the global economy, investors can consider traditional options like gold and silver in light of such concerns.


News brought to you by Superior Gold Group – expert gold dealers offering precious metals products. Become part of the gold affiliate program today!
Contact The Superior Gold Group and learn how to get on the gold standard at www.gold101.com or Call (888) 374-4032.

Many Uses of Gold

Since the beginning of recorded time, investment in gold has been a common practice. In addition to being a metal that has long been appreciated for its value in terms of being an ornament, people have long considered it one of the most valuable assets to hold their personal wealth.

Gold has historically been used in jewelry, though in recent decades in the United States this trend has been on the decline. The biggest consumers of this metal are currently industry and dentistry, totaling 11% of total demand. It is suitable for industry because of its malleability, its resistance to corrosion, and excellence in conducting electricity. These features make it an important component of televisions and computers.

Gold is a very popular item around the world, and has a variety of different normal uses by different cultures. There are so many uses for it that it might take a book to explain each one in detail. Gold is most commonly thought to be used for jewelry and collecting, but in actuality, a large amount of the gold in the world is used for investing.

When we talk about gold, we often start at a point where we don't know that there is a difference between commercial gold and pure gold. Usually, pure gold is very soft and is combined with some metals to make jewelry. The best thing about gold jewelry is that they are easy to maintain and are durable. Gold comes in different shapes and color based on the other metals it is combined with during melting. When we talk of measuring its purity, gold is measured in grams and its prices are fixed depending on its purity, weight and make. If we go for designer gold jewelry, it is somewhat costlier for their unique features that hold intrinsic value. Even though there are fluctuations in prices, popularity has still placed it in demand as a precious item. There is a wide variety of gold jewelry including but not limited to, chains, necklaces, bangles, bracelets, earrings, anklets, rings etc.

When we think about giving something precious to our loved ones then gold jewels can be a wonderful and memorable gift. Among gold jewels, gold chains rank the highest position in sales. Every woman in the world wants to wear a gold chain not only for beauty, but as a symbol of status. In recent years machine made gold jewelry has taken off, it is often considered to be much better than the handmade jewelry. The designs made by a machine made gold jewelry are very beautiful, and the standard are precise. This technology has also given plenty of gemstones embedded gold jewelry flexibility to match any color.

Gone are the days when you used to go out in the market and buy gold jewelery. Now a days there are many sites which are offering gold online, you can just log on to the web site, where you will find a catalog consisting of all the gold items with their prices.


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