Pursuant to China’s continuous drive to monetize gold the nationhas begun to permit Gold’s use in their insurance industry as an investment vehicle for companies to offer.
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Weixin Media reported the following out of China:
On February 5, 2025, in order to broaden the channels for the use of insurance funds, optimize the insurance asset allocation structure, and promote insurance companies to improve their asset-liability management level, the Financial Regulatory Administration issued the "Notice on the Pilot Program of Insurance Funds Investing in Gold Business" (hereinafter referred to as the "Notice"). The pilot program of insurance funds investing in gold business will be carried out from the date of issuance of the "Notice".
This is no small thing and has historic parallels in the US.
ANALYSIS: USA PLAYBOOK, BUT SAFER:
In the 1980s, with the US in almost desperate need to replace its whithering manufactiuring industry as an economic engine, espcially after the stagflationary 1970s— The US liberalized ownership of equities fo all financial industries, effectively deregulating their ownership. The result was a booming economy and a broadening ownership of stocks as investment vehicles. This era was called the GOGO 80s.
China is replicating the US market structure but liberalizing and encouraging ownership in Gold, the safest investment asset on earth. They also culturally see the result of too much financialization, especially with equities that can result in welath disparity and bubble creation.
China is doing the same thing, but with Gold. China is financializing itself jsut like the US did, but with more reliable and less volatile assets.
THE FULL STORY
Here is GoldFix breakdown of that story starting with Eric Yeung who first alerted us to it with this post on X.com
HUGE NEWS FROM CHINA FOR PHYSICAL GOLD
CHINA The [planned] pilot program of insurance funds investing in gold business has been launched, and 10 insurance companies have participated in the pilot program as reported by Hu Zhiting for “ThePaper” - Source Eric Yeung
