LONDON, 17 February 2014 – Today's Daily Telegraph, the UK's best-selling quality newspaper, carries a full-page article on the rising gold price centred around analysis from BullionVault.
"Gold lost 30% and silver nearly 40% last year," The Telegraph quotes Adrian Ash, head of research at the online gold and silver bullion exchange. "The world economy will struggle to deliver all the good news priced in by that crash.
"But China's unfolding credit-crunch looks central right now."
Adrian argues, The Telegraph goes on, "that capital flight is happening at a rapid rate in China because of the $1.8 trillion of funds that have flooded into unregulated, non-bank 'wealth management products' which offered very high yields, up to 17 times as much as cash deposits."
With many of these funds now representing a loss to investors, the "crunch" for China's economy may have begun, sparking a move into gold by wealthier and institutional investors, as well as Chinese households.
You can read The Daily Telegraph's report here:
Gold price signals China credit bubble bursting as investors seek safety
