“HCS Worldwide” insiders suggest that the price of base and precious metals may rise in the face of a new economic stimulus plan announced by the Chinese government.
“HCS Worldwide” are thought to believe that a large portion of the unprecedented $586 billion package will find its way into the country’s infrastructure projects and renew demand for copper, aluminum and other commodities.
An “HCS Worldwide” source suggested that recent speculation China’s slowdown would harm demand for commodities had been based on expectations of a slowdown in the world’s 4th largest economy but, as China still possesses the world’s largest trade surplus, it has the maneuverability to utilize some of its vast reserves to keep its economy growing without resorting to the issuance of government debt as is the case with the US and other Western economies.
“HCS Worldwide” acknowledges that China has now eclipsed South Africa as the largest producer of gold in the world and it is likely that infrastructure improvements will benefit mining operations and increase demand for the precious metal complex as a whole.
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