In the US, gold is often looked down upon as an investment asset class, with many analysts referring to it as a relic of a different time. Why would anyone need gold in a credit and debt based economy, the thinking goes.
While our government tells us to invest in stocks and bonds, the Chinese have been actively promoting gold to their population of over $1 Billion.
Hat Tip Willie Wonka
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Mac: Its seems to me that a few months back, that kid giggling down in his mother’s basement was recommending Chinese mining stocks!
🙂
“There’s a gold rush in China as both the government and savers abandon investing in international currencies.” In other words, the Chinese are buying gold and dumping our Monopoly money. So much for those Wal-mart rollbacks.
Is there a bubble and if so, what about it?
Bill,
The real bubble is in all things paper; paper currencies, bonds, stocks.
The MSM and the government hate gold and want you to think it is a a bubble, a lousy investment, and will do anything to keep gold values down so they can continue with their inflated paper money Ponzi scheme as long as possible.    Â
George Soros is a punk ass Nazi. Why anybody would listen to this CFR punk is beyond me. He sure knows a thing or two about creating bubbles and exploiting bubbles. If he’s against gold, it means we’re on the right track. As for China, I think they were tipped off a long time ago. Lindsey Williams indicated that China will be one of the strongest nations when this economic collapse goes all out. I personally, believe, after researching this stuff for awhile, that China “might” have been tipped off back in 2008, they were advised to buy gold so that they can retain something and stay above the crowd as the economy in Europe and USA crumble.
who knows, unfortunately I don’t sit in secret meetings.
Phil
Chinese commercial real estate is a BIG bubble. If it collapses it could start a chain reaction, which is why China has been tightening bank credit the past couple of months, and will continue to do so.
The Chinese do not have to be “tipped off'” about gold. Orientals in general and Chinese in particular have always had a preference for gold. Before WW II, gold was a BIG deal in the Far East, and had been for centuries. The Japanese looted the entire Far East of ALL of its gold, and we confiscated it from the Japanese. Read Yamamoto’s Gold. It was all stashed in the Phillippines.
Currently, China is the number 1 gold producer in the world and its gold mining industry has only taken off in the past couple of years. In the West it costs about $450 – $500 per ounce to produce. In China: divide by eight, or six or whatever the recent exchange rate. Thing is, the world market price is the same regardless of your cost to produce. The lower your costs, the greater your profits. So gold mining is extremely profitable in China. Thats the “tip off”.
I concur with you Zukadu. However, do not make the mistake that Chinese is Japanese. They are nothing alike. Also, Chinese could not buy gold for a very very long time during the commnist era. They only started to buy gold until very recently (and i mean the population). The government on the other started stocking up on gold around 2004 if i recall, so it’s new thing. Heck, their state TV only just told the population to go buy gold. that was just late 2009. Hence, the mad dash. You have to understand the Chinese population act like sheeple just like us. Believe me, my ex-gf is from Beijing. Many trust their government without reservation (kinda like our sheeple here too).
But great points and i’ll accept your analysis more than mine.
the governments power is demonstrated thru the banks by shorting gold + silver
Paul
I agree totally. We took all our money out of our 401K’s years ago and started to buy gold and silver. All our friends and my employer thought I was nuts.  My “401K” went up in value and is in my safe where I can touch it, all my friends and coworkers lost their butts.   Paper sucks.  Real gold, real silver not shares or stocks.
“”The US could easily revert back to the gold standard. But they would have to make gold like $1 million an ounce to do so.” – Marc Faber. Given that, you tell me where the bubble is.
T.I.P.S. = PAPER GOLD
I think the move to gold for the Chinese population is really a way to obtain more wealth for the country without causing any great concern to the rest of the world. Nobody is concerned if India buys 220 tons because the population is a gold consuming people . They even have a gold buying holiday.
So the Chinese government says how can we buy more gold without sending the world into a tailspin. Answer, let the people buy the gold. What a great way to store the wealth of a nation.
We can always confiscate it later.
Maybe the US government is thinking the same way. naw they wouldn’t do that to the American people.
The Chinese government is buying ALL the gold that chinese miners are producing with their excess dollars