The bursting of China's credit bubble; Implications for Gold - Alasdair MacLeod

``China's rich have an estimated equivalent of $3 trillion in personal assets to protect from a credit and currency maelstrom. Inevitably this will lead to huge shifts in asset allocation, and gold bullion is likely to be the outstanding beneficiary. In common with all other Asians the Chinese regard gold as true money, a safe-haven from government currency. And only five per cent of $3 trillion at current prices is 68,000 tonnes of gold, which gives an idea of how dramatic the effect of even a small flight to gold would have on the price.''