Hello jumpstart,I am following this and do agree you deserve a...

Hello jumpstart,

I am following this and do agree you deserve a listen and respect. The article does state some of what you have been saying only without the conclusions you draw. I thought this was telling in the article:

"Stealth is how China is building its gold exposure. Rather than disturb the global bullion trade, it is buying gold in the ground, using the companies that are all ultimately controlled by its government to scour the world for gold investment opportunities. That’s because, what’s good for a Chinese company is for good for China."

CW - now you consider this sinister and I consider it commercial. They want in and do not want to drive the price too high. The last sentence backs up what I have been thinking - that if the Chinese company does well then that is good for China. That means earnings going home, the company has to be profitable for China to benefit. This is a positive for FML not something sinister to stress about.

Eureka
"Australian investors not exposed to gold should not ignore the latest piece of evidence about who’s buying gold, what that means to the price, and what currency changes really mean to investment portfolios."

CW - Glad these guys have caught on and are promoting gold stocks and gold. Aussie investors do have to wake up this is great for me, us, FML as well.

Eureka
"More than three years ago (The Bullish Bullionaire) Australia’s “Mr Gold”, Mark Creasy, explained why central bank activity in the gold market is critical to the price of gold.
When central banks are buying, the gold price rises. When they sell, it falls.
His most instructive answer was in this exchange – in May 2009:
Eureka Report: “And recently we’ve seen the Chinese central bank buying gold?”
Mark Creasy: “Correct. The best way to look at gold is not on the peripheral, say the scrap market or even mine supply; it’s to ask what are the big shareholders doing. In the past we’ve seen big holders such as the Bank of England and the Swiss National Bank selling, and people think we’re out of this. When they see a big new buyer, people want in.”

CW - see this last sentence - BIG NEW BUYER - PEOPLE WANT IN. Thank you DT for bringing in such an esteemed Chinese company (SOE) for this will attract buying by savvy investors who will do their DD first to see what the fuss is about. Then such buyers will circle and try to work out how to load up on the cheap as well. Since no further capital is required IF we accept this SGG deal then the rest of the buyers will have to buy on market and hold - this will push up the share price and will reduce liquidity to some extent.

Of course the Chinese company SGG will want to increase production and profits via dividends - get FML up to a much higher revenue level ASAP and perhaps take dividends in gold.

I see nothing sinister in the article I guess it is how you look at it jumpstart.

Cheers,
CW