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Monday, March 11, 2013

A setback for gold and gold miners

My contention since I liked gold is that it will rise in price due to indian and chinese demand.
I am not one who believes gold is money, and it should NEVER be money again!

The logic being, as the two largest consumers of gold increase in wealth, they would buy more gold!
Well, Indian government is putting a damper on my master plan, but actively fighting Indian purchases of gold.
The government is blaming currency imbalances on Indian high gold purchases.

So they are actively tyring to slow gold purchases, now with tarriffs.
I am not saying gold will collapse, but if the west hates gold as a threat from guns and gold bugs who think the world would be better if the economy was dictated by mining production, and the Indian government is also fighting gold.  That leaves China to pick up the slack, and I am no fan of China's economy.  China needs to prove they can change their model from exporter to consumer.

I am unsure what to do, time to leave gold?  At very least I am not a buyer of more.

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