china gold connection

Philip Bruce is MD of HEG, Hill End Gold Limited He appeared on Sky Business a few weeks ago. Here is the link.

http://www.hillendgold.com.au/index.php?option=com_content&view=article&id=128&Itemid=209

Toward the end of the interview, Philip gives a few insights into his views on the POG and $US strength. He sees continued strong demand from China for gold and longer term weakness in $US. Over the shorter term though, he sees the need for ongoing Chinese support for $US given massive Chinese holdings of US currency. I get the impression that Philip expects China to increase domestic gold reserves but at a rate which maintains $US strength over the shorter term. This implies China working to maintain a lid on POG.

This morning, I watched the interview for the first time. It was time well spent.