china's strong yuan strategy & gold bull, page-18

Good posts Socrates
What concerns me is that, perhaps the single largest upwards pressure on POG comes from China buying. Ignoring all other fundamentals for the moment, If that were to change then would it change the tide?

There is not a lot of gold on the planet, and it is expensive to extract. If it was more spread out among people all holding a little it would be vastly more expensive and less volatile. I see It is a positive trend that there are more people entering the market for physical and or jewellery. But that alone would take a long time to more evenly distribute holdings, so for now, Central Banks, Hedge funds and EFT's backings rule the price.

Then there are is the US - US Gov. tends to do whatever they want, then clean it up with their crappy media machine, so betting against them should not be taken lightly. That said, I do not see them as the only war-mongoring force of evil on the planet. That is not realistic or helpful, however, we should be very skeptical about the foreign policies of the US and the countries whom follow their lead. Just as we should not tolerate Taliban brain washing, Thaksin corruption in Thailand or China taking Tibet.