China And Commodities: A Discussion

China And Commodities: A Discussion
China is buying up raw materials at a feverish pace, motivated by fear of a falling dollar. What does this mean for the U.S.?

(Source Forbes) Forbes gathered a panel of industry observers to discuss recent actions by China as it goes on a commodities buying spree. Our industry observers include David Joy, chief market strategist for Riversource Investments, Liz Ann Sonders, chief investment strategist for Charles Schwab & Co., and Bill Singer, shareholder in the Securities Practice Group of the law firm Stark & Stark.

Some background on China's recent commodities boom. Recent figures show it holds 1,054 tons of gold, up from 600 tons in 2003; it upped its imports of iron ore to 57 metric tons in April and also increased its imports of other commodities including copper and oil. Specifically, China purchased 399,833 tons of copper in April, a record, vs. 374,957 in March.
http://www.forbes.com/2009/06/04/china-commodities-dollar-intelligent-investing-debt.html