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A new pilot program in China that allows insurers to invest in gold for the first time is set to inject billions of dollars into the precious metal market, potentially strengthening its ongoing record-breaking rally.
Launched last Friday, the initiative permits ten major insurance companies, including PICC Property & Casualty Co. and China Life Insurance Co., to allocate up to 1% of their assets into gold bullion.
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According to Minsheng Securities Co., this new policy could unlock as much as $27.4 billion in potential investment.
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With gold prices already at new highs, analysts predict that the influx of demand from Chinese insurers will provide additional momentum to the market, further driving its upward trend.
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