wait and see, page-19

Hi random101 -- I really cannot understand why it is at these levels either, the public just don't seem overly interested.

This should soon change with the recent significant change in GOLD price fundamentals -- China have been reported as in the market to purchase 2,600 tonnes of gold.

Check this article here;

http://www.hotcopper.com.au/post_threadview.asp?fid=1&tid=927283#4205428

Synopsis: The BRIC economies are applying their weight behind calls for the IMF to go further with their SDRs and set up a proper World Reserve Currency [WRC] instead of the defacto USD. The Bretton Woods 1944 Agreement made the USD as the World's Reserve Currency. This changed in 1969 - 1970, but the USD continued as the defacto WRC. There had been proposals to issue a WRC called the BANCO, but it never happened.

So What? -- The Chinese and others are not at all happy with the implied threat to all the paper money USDs that they are holding. So they have been out on a spending spree to "buy stuff". Hence the RIO, LYC and ARU purchases, to name just a few. Now they want to get more GOLD too -- this will equate to buying a third of the current US Gold Reserves -- USD 80 Billion worth. So the Chinese are increasing their committment to transfer their paper into real "stuff" that has future value -- again they are thinking ahead by measures in decades.

What If? -- The US Treasury, market and commentators only see this as "background noise" and fail to see/detect that;

1. Other nations with large paper holdings, begin covert acts to follow the Chinese strategies.

2. Gold price market suppression tactics really do have a use-by-date.

3. Future USD value will not be controlled from the US policy makers,

.....then we will certainly be in for an interesting ride where the price of "real precious stuff" may shatter these artificial constraints that have been keeping the lid on pricing for years.

Then we will see some TAM price fireworks.....

Cheers