forget deflation .. inflation set to soar .., page-216

Once you abandon the euro/yankee/ozziecentric view of the world you can actaully understand gold

one billion indians see silver and gold as a store of wealth not some useles relic. Indian inflation runs at 12% pa. last time I was in Dubai I asked the Indian taxi drivers what they did with the extra cash they made working for the Arabs. They bought gold of course. Who wants rupee notes declining at 12% pa

Vietnam has banned gold importation because no one trusts the local fiat currency. You dont slave your guts out in Vietnam in exchange for pieces of paper declining at 15% plus pa.

And as for China, the elephant in the room. currently they buy in the cash market. The European Central together with mines supply that cash market, guess who is buying. Arabs and Chinese. they dont need to buy on Comex the cash market suits them for now. But if the European Central Banks stop selling....

I listened to an interview with a guy who runs the Dubai Gold Exchange. His view was that at some stage the European Central banks would curtail selling and gold would then rise very rapidly as the physical market becomes tight at the "wholesale" end. as we all know it is already tight at the retail end




Looking at gold in US dollars distorts the facts

which are if you invested in gold in AUS or British pounds 3 years ago you have doubled your money. the hedge worked!A mate of mine sold his UK house and bought gold 3 years ago. His hedge paid off big time.

Economic power is shifting to Asia. England is toast, Europe is rioting. Yanks ate to many Big Macs and sat around watching TV telling them to consume.

Gold is money and well see it at AUS$2000 plus within 2 years and those long quality gold stocks will make fortunes