Gold price, page-8929

Why would the Chinese offer be worth double the value?

It's quite simple.

For thousands of years the Chinese have valued physical gold above all things, and currently Australia does not have a prohibition on restricting them from shipping as much gold as they can carry back to China - unlike many other countries.

In 100 years or so, when the new world economies all collapse, and the planet erupts into economic turmoil, China wants to hold a majority of the world's physical gold bullion.

The Chinese are patient, over generations, and they have a plan. And it's a good one.

And for that, I cannot criticise them. One day into the future it will be called foresight. When the collapse comes, every other country will be angry and disappointed and envious, that they never had the discipline to provide for their children's... children's... futures. And China will dominate the entire world stage, maybe for a hundred years.

While idiots like the former prime minister of England, Gordon Brown, sold off most of Great Britain's gold when the price was $300/oz - which just goes to show, that some countries elect loud mouthed ambitious arrogant fools - and so they will pay for it.

And the Australian government has been selling off Australia's sovereignty for years. Occasionally they will squash a bid, like the Kidman cattle station bid, but that's not often, and only for show.

The Chinese are buying up Western Australian farmland, and cattle stations, and mines, and houses and apartments, and private businesses, and university lands - and you know what - we let them. And we do it for only reason - Money! It's just all about our greed. We deserve what we get in the future.

So what could an Aussie buy in China if he went there - nothing! We aren't even allowed to buy a pig or a goat, let alone an apartment.

And why are all the Chinese based companies listed on the ASX trading at ridiculously low prices, with no-one wanting to invest in them?
It's simple.
There was a great example provided in the last month. An ASX listed Chinese company who is making $10 million NPAT profit a year but has a share price of only 10 cents and a ridiculously low market cap that is 600% below their fair value - why? Because they have their company banking and finance based inside China in Chinese banks, and the Chinese banks are beholden to the Chinese Communist party, which is prohibiting them from transferring any funds into an Australian bank so they can pay dividends to Australians, or grow the company. It's a joke.

I could go on, with example after example, but you get the idea.

PS: I recently sold my shares in BDR just before it dropped below my average price, after holding for 4 years. I am now watching closely for a re-entry, because BDR has such great potential upside from here, once the gold price stabilizes.

Gw