{"id":297613,"date":"2010-02-09T07:36:16","date_gmt":"2010-02-09T12:36:16","guid":{"rendered":"http:\/\/www.businessinsider.com\/china-reveals-that-its-a-major-investor-in-us-oil-trust-spdr-gold-etf-2010-2"},"modified":"2010-02-09T07:36:16","modified_gmt":"2010-02-09T12:36:16","slug":"china-reveals-that-its-a-major-investor-in-us-oil-trust-spdr-gold-etf","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/297613","title":{"rendered":"China Reveals That It’s A Major Investor In US Oil Trust, SPDR Gold ETF"},"content":{"rendered":"

\"china<\/p>\n

It’s well known that China has been making huge strategic purchases of commodities in order to support its rapidly growing economy over the coming years.<\/p>\n

What’s also interesting is that the country is placing financial bets on these commodities as well.<\/p>\n

The nation’s big sovereign wealth fund, the China Investment Corp, has revealed<\/a> that it’s the No. #4 investor in the US Oil Fund ETF (USO), as well as a major investor in the SPDR Gold Trust (GLD), both of which are the pre-eminent market traded vehicles for their respective commodities.<\/p>\n

One theory put forth by an analyst to Bloomberg<\/a>: these investments are basically a hedge. They know that when they buy into a commodity they push up the price, so these bets allow them to recoup some of that upside.<\/p>\n

Of course, if deflation causes commodities to slump, then they’ve got trouble on both ends.<\/p>\n

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