from ainsley bullion company today - re china, page-37

I used to trade specs that related to the flavour of the month commodity - do a lot of reading, follow some bright boys on HC and place my bets before the DT arrived. I made about 120% in a year doing this. Holding up to 60 stocks at time with no more than 3k in any one.

About 2.5years ago that system started to bleed my dry as specs kept finding new lows and PM's became the only sexy commodity. I stopped reading anything that was not economy or Gold related.

Gold is a fascinating canary - it is a reference point, like it or not, but the relationship is sentiment driven, it is not an immutable law.

All we know ATM is that 1440 - 1480 is the range until something pushes sentiment over one of these lines.

China and the Fed are the major controllers of demand and sentiment - not necessarily through manipulation.

Gold will move as a result of what they do, and POG is just a side game to them, it is just a canary.

China,( and Russia?) had low Au reserves, when they hit their target, they will ease buying - currency wars are real, at least for the time being, so gold backed bonds do make sense, then again Euro country bond yields have come down alot so perhaps no need.

All I know is that at 1,500/oz many miners are over-sold and that is why I accumulate them on really bad days. I really should start selling on good days, but I guess at my heart I have bought into the whole Austrian thing - I mean even Keynes said that Govs. should reduce money supply in good times - yeah right..they are greedy, stupid self important muppets - they have no business sense.