AAU 25.0% 0.3¢ antilles gold limited

The next couple of months should finally show some truly great...

  1. mdc
    276 Posts.
    The next couple of months should finally show some truly great gains in PGI.

    Easily available reading , via a Google search , will show that China has increased its imports of Gold massively year on year / quarter on quarter .

    Everyone talks about the trillions of dollars China has in foreign reserves , but most of this is in U.S Treasuries which is in simple terms U.S debt.
    As the yields on these are getting at historical lows China has had enough & consequently buying more Gold.
    It is also encouraging it's citizens to do likewise.
    With their population that in itself can move the price considerably.
    As dodgy as China's banking system is with its own debt at least by having Gold on its books it is something that can be tangibly quantified.

    Furthermore , & not just my opinion , Gold is something by which China is accumulating so as to back its currency in to be used as a means of paying for goods.
    Therefore moving away from a toxic U,S. Reserve as the the " World Currency " .
    A few countries already have agreed to use the Yuan already , with Australia strongly rumoured to be not far away also .
    QE3 or QE4 is , for my mind , only a matter of time . Even more so in a U.S. Election Year.

    Central Banks the world over have been increasing their Bullion buying year on year.

    So the above all points to a great increase in the price of Gold.
    At worst , even without a rise ( highly unlikely ) , with our low cost of production we should be in the money.

    In saying that a huge decoupling of the financial market would result in those same Central Bankers having to sell Gold to raise money thus causing prices to fall quickly.
    The chance of that happening is the great unknown & obviously under normal market conditions should have well & truly already happened.

    What I write might be waffle , gleaned from my own reading , but I will stick to being a Gold Bull....but that's me so please form your own investment decisions .
 
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