The US economy is undergoing a financial meltdown. Likewise, the American currency is declining. Smart citizens are looking up better options to defend their money that came by hard work and patience.

Throughout the world, purchasing gold is one of the best ways to protect your assets. Actually gold purchasing is one of the most favorable and Scheideanstalt Berlin  proven ways of protecting your assets.

Experienced Investors Of Gold Ingots

To experienced investors of gold ingots, Mexican coins are among the top favorites. As so are the gold Krugerrands from South Africa. The main reason for many people buying Mexican gold coins is to battle inflation and make up for risks.

Mexico’s Gold 50 Pesos had been minted in 1920s for the first time. These are one of the breathtaking designs of gold coins on earth. These coin feature majestic art with an angel with wings and famous mountains at the backdrop.

Coin Shows an Eagle

The reverse of this coin shows an eagle that has a snake on its beak. The size of these coins is at least 20% bigger than the US version of the Gold Eagles. These coins contain 1.2057oz of solid gold. So they are much better carrier of gold when compared to the legendary 20$ American gold coins.

To buy Mexican coins, you may visit neighboring gold dealers. It can also help if you visit local coin shops that sell gold coins under good deals. Nevertheless, most gold dealers would try to mark up much higher profit on the sales of Gold 50 Pesos. The higher premium is justified since they have to cover their operational overhead along with other expenses.

If you want, you may also view and purchase Mexican coins online. Try and find online auction sites since they have been the hub for gold coin deals during the past couple of years.

China Is Buying Its Own Gold

Although well known for its secrecy, in 2009 China announced publicly that it had increased its reserves by 76%, through an impressive gold purchase. As to why it bought such an amount, it remains for analysts to determine. On the other hand, Chinese people own 3,000 tonnes of gold, two thirds of it being acquired only in the last five years. These figures are clearly indicative of the fact that both at state level and at a private level, China shows all the signs of an unprecedented gold hunger. What’s the reason for it, besides the demographic range and the fact it can afford it, given that all this gold was bought from its own mines, and China is at present the largest gold producer in the world?

As far as the public gold demand is concerned, the explanation is rather simple and so to speak universal: in times of crisis, people no longer trust money, and they go for gold as a stable and permanent value, either in the form of jewelry or gold bullion. This explanation would seemingly hold true for the Chinese state as well, in the current climate of total distrust in the ability of fiscal or monetary policies to counterbalance the crisis and revive global economy. Where to turn to if not to gold, which has never failed like these human devices?

People’s Bank of China

But in the case of the People’s Bank of China, the situation is more complicated than that. First, whatever the amount of gold bought for its reserves (the largest foreign currency reserves globally), this represents only a tiny 1.6% of them, the largest part consisting in US treasuries. This new figure changes completely the perspective on China buying such large quantities of gold and on its secrecy on doing it. China is not interested in triggering in any way a raise in the price of gold. Besides the fact that this would increase the price at home and affect the domestic demand, this might lead to a weaker dollar and as such reduce drastically the value of the immense amount of US governmental bonds China possesses.

So the economic interests at work in the ‘business’ relation between China and the U.S.A. put in a different light the Chinese state’s latest gold purchases. China is very cautious as regards the devaluation of the dollar. First, because of its US government Scheideanstalt Berlin t bonds and secondly but as important because the US market is the main market for its products, and selling them means being able to ensure economic growth.

So, as strange as it seems, let’s say that China is buying its own gold because it has it, it is probably cheaper, and can counterbalance the massive US dollar reserves or hedge them just in case…It is the best illustration of the strange intricacies of an economy really gone global.

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