Just read an article on bloomberg titled: China Gold Hoarding...

Just read an article on bloomberg titled: China Gold Hoarding Turns More Traders into Bulls.(Below are some important points).

Eighteen of the 23 surveyed by bloomberg expect the metal to gain next week, the highest prportion since Nov 11.China is importing gold from Hong Kong which may be a sign the central bank is adding to reserves. China overtook india in the third quarter as the largest gold jewelry market according to world gold coucil.
Holding in bullion-backed ETPs reached 2357.3 tons yesterday valued at $124.1 billion.
Gold has demonstrated time and time again its ability to hold purchasing power. It looks expensive and people talk about bubbles, but its not.

There were 8002 call options traded on Jan 11 giving holders the right to buy the metal at $2200 by July and the six most widely held holdings are for call at 22 percent above prices today.Option traders are making FEWER BEARISH bets against the SPDR Gold Trust, the biggest gold-backed ETP, than at any time in the past 20 months.

Gold is also benefiting from concern the euro zone will tumble back into recession. The rebound in gold is being threatened by a strengthening dollar which rose to a 15 month high against six major currencies this week. The 30 week correlation coefficient between the greenback and bullion is not at -0.43 (a figure of -1 meaning the two always move in opposite directions).

Looks like its a good new for LT Buyers of FML if it can produce 200,000 ounce per annum.

Please DYOR