It should be noted that all metals are now falling in unison.
Why now?
The obvious answer is that China has decided to take down metal prices so that they can put pressure on miners and acquire the mines more cheaply.
They have come to realise that their recent purchases were ensuring the economic viability of the remaining mines and hence keeping them from buying them on the cheap. By making the overseas mines uneconomic they can scare the locals to sell their shares cheaply to them. A great scam has been in progress around the world with China acting in a co-ordinated manner.
These thoughts are not just mine. I have read snippets on this.
I believe the recent rapid rise in the price of gold from $USD680 was mainly due to Chinese buying, and that they have now worked out that they would much rather have our mines cheaper and not just the mentals.
This adds a new dimension to the backdrop to metals price setting. I am not sure how long this could last. As long as the G8 nations are weak, about 5-8 years?
The only hope for gold is that we have some high inflation sooner rather than later to boost gold prices.
Just some negative views on the new metals rip-off.
loki
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