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Friday, February 18, 2011

India and China love gold and Silver

Well, its good to see media finally giving credit where credit is due. Instead of doom and gloom of the dollar moving to worthless as the reason for gold and silver's rise, article links China and India consumption as voracious.

Most interesting is this quote:
"Chinese government is encouraging their citizens to buy physical gold and silver bullion having banned gold ownership from 1950 to 2003"

Woooh! if thats true, I can really see gold launching into the statusphere. As China's economic instability continues due to some pretty horrific monetary policies, I can see people pouring into gold as a safe harbor.

Remember, there are over 1.2 billion Chinese, if even 20% purchase gold aggressively, thats 240 million people. America has total of 300 million people. Then India on top of that is purchasing.

I can see gold going to ridiculous levels, just may not be in a straight line.

When this craziness ends, likely years from now, it isn't going to be pretty. At some point gold will utterly collapse the day those chinese want to sell gold. I don't see that in the next 7 years or so, since most people buy gold like a ponzi scheme and hold.

Good luck.


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