aam - chart, page-55

The Chinese have the scope to increase their gold purchases, but it is expected that they may take a long-term approach by the avoidance of trading on the open market. Some analyst’s from China believe that China should take that type of strategy with gold?

They would possibly rather purchase their gold by actually purchasing gold mines or mining companies that produce gold as it is cheaper than purchasing gold on the open market.

So many small gold companies in Australia for example could be under the eyeball of the Chinese? The government should deny such purchases in my opinion so that we have some control over the market.

China’s official gold holdings had risen to 1,054 tonnes from 600 tonnes in 2003, by buying on the domestic market and from domestic producers. China's gold holdings make up just a small 1.9%portion of its foreign exchange reserves worth $2.27 trillion.

Some people believe that gold's intrinsic role and the proper way to treat it is not as a tool with which to make money, but as an investment, or a vehicle for capital preservation or a savings device.

They also say that Gold is not something that will make you rich overnight, but it will help you sleep well. Especially if AAM keeps moving up like it has been. My desire to hold AAM gold stock reflects on my means to preserve some form of wealth, so I am holding on tight.