You are here
China goes prospecting for world's gold mines
By Biman Mukerji
The Wall Street Journal
Sunday, April 10, 2016
Chinese gold miners are aggressively scouting for overseas acquisitions, encouraged by historically low gold prices that could help them scoop up assets cheaply.
Though gold prices have risen by more than 16 percent since hitting a six-year low last December, prices are still trading close to levels last seen in 2010, in a range of roughly $1,220-$1,240 per troy ounce.
China is the world's largest gold consumer and producer, but only a few Chinese companies such as Zijin Mining have ventured abroad to buy mines, unlike their counterparts in industrial metals.
If cash-rich Chinese gold miners embark on an asset-buying spree, China could reduce its dependency on other international producers for supplies and increase its heft in global gold markets. ...
A period of low gold prices also means Chinese companies may have more options to buy because several mining companies are facing a credit crunch and have massive debt.
"China has five to six gold companies. I have been in touch with all of them, and they all have plans for increasing assets overseas,” said Peter Grosskopf, chief executive officer of Sprott Asset Management, a Toronto-based company that manages assets including physical bullion trusts.
He says the Chinese companies are well-capitalized and better positioned than their North American counterparts.
Sprott has set up a partnership fund with China’s leading gold company, the Zijin Mining Group, which is called the Zijin Sprott Fund, with the aim of buying overseas gold assets, Mr. Grosskopf said. "The expansion [opportunities] are better globally than in China." ...
... For the remainder of the report:
Direct Ownership and Storage of Precious Metals
Outside the Banking System in Zurich and Singapore
Goldbroker.com is a precious metals investment company that enables investors to own and store gold directly in their own name (no mutualized ownership) in Zurich and Singapore.
Goldbroker's clients are not exposed to any counterparty risks. They own gold and silver in their own names (the ownership certificate cites the name of the investor and serial number of his bars) and they have storage accounts opened in their own name as well. So Goldbroker.com's storage partner knows the exact identity of each investor. Goldbroker.com doesn't store in the name of its clients; rather, Goldbroker's clients store personally. All investors have direct access to their gold and silver bars.
Goldbroker.com was launched in 2011 so that investors would avoid any counterparty risk when investing in physical gold and silver.
Goldbroker.com is listed among GATA's recommended monetary metals dealers:
To invest or learn more, please visit:
Join GATA here:
Mining Investment Asia
Wednesday-Friday, April 13-15, 2016
Marina Bay Sands, Singapore
Support GATA by purchasing DVDs of GATA's London conference in August 2011 or GATA's Dawson City conference in August 2006:
Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:
Help keep GATA going
GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
To contribute to GATA, please visit: