The Chinese government has already made some big moves to keep domestic inflation from spiraling out of control:
So far, none of these measures have managed to curb inflation. Fears of uncontrollable inflation — even hyperinflation — are quickly circulating throughout the Chinese economy.
- raising interest rates multiple times;
- toughening price-fixing rules;
- tightening lending requirements and raising the minimum down payment people need to buy a home.
This has prompted a rapidly growing number of China’s 1.3 billion citizens to start devouring gold as wealth protection.
The question of how long it can last still remains, but the trend's a solid one. Although inflation is a cause, some of the demand comes from tradition.