The world’s largest consumer of gold is not the USA or even China – it is India.

December 06, 2010 – For reasons to buy gold coins it is worthwhile to take a look at the huge emerging Asian economies where the perception of gold as true wealth has continued undiminished since ancient times.

The world’s largest consumer of gold is not the USA or even China – it is India. While India has experienced tremendous growth in the wealthy upper class, it is still a nation with millions upon millions of peasant farmers. And those farmers account for a solid portion of the nation’s gold purchases. Regardless of what happens in the domestic or global economy, India’s citizenry has taken a strong stand to preserve whatever wealth they have acquired.

The preference for gold among India’s farmers is in jewelry (they account for some 60% of the nations purchases), which of course would be a poor choice here. They have the benefit of relatively low premiums over the actual value of the gold content while in the USA that premium can reach several hundred percent. Here gold coins are the obvious choice but the lesson in inescapable.

China offers a similar example. There the people have also treasured gold throughout the ages, but only recently have they once again been allowed to possess it. These extraordinarily frugal people typically save 40% of what they earn in bank accounts and as the nation’s peasantry transformed into a vast middle class, the government had to deal with the negative yields on savings created by their interest cap.

The government decided to allow the private possession of gold and the Chinese needed no encouragement to return to their traditional measure of wealth. In addition, China has discovered there is great advantage in adopting gold as an alternate currency.

Gold is set to play a major role in the era of global economics, and every American has the opportunity to take advantage of that with gold coin investment.

Kevin Johnson

Senior Staff Writer –

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