China property bust undercuts talk of new commodity ‘super cycle’
“[N]ow a crisis in China’s property sector, as manifest in the financial problems of developers Evergrande and Fantasia, has many worried that China’s near-insatiable demand for raw materials, which long proved a potent engine of growth for emerging economies, has run out of steam.”
USAGOLD note: We have raised the prospect of a slowdown impairing commodity demand in China – a situation that might also cause some to think gold demand might be hampered as well. There is another aspect to China’s property bust though that is likely to encourage gold demand – the global systemic risks and the potential for a contagion. As such, it is not just Chinese investors likely to seek refuge in the yellow metal.