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Undertaker

Chinese Gold Speculation on Sky News

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Here is a link with a bit more info:

 

http://www.3news.co.nz/China-gold-rush-as-...84/Default.aspx

 

That's a good article. The first line tells us that

 

'Gold prices are reaching record highs and people all over the world are clamouring to swap cash for gold.'

 

So the story is not really about growing confidence in gold. It is about falling confidence in cash. This is not surprising given the huge budget deficits of western countries. The US federal govenment, for example, has a 1.5 trillion projected deficit this year. Ask yourself who has 1.5 trillion to lend? Some of this is bound to get monetised.

 

Here's Krasimir Petrov's take on the situation

 

'As grim as it may sound, there is a glimmer of hope – the beginning of the hyperinflation is also the beginning of the end for the Crisis. Financial assets accumulated by individuals and businesses during the boom years have to be destroyed – the price for our financial folly today will be paid tomorrow. There is no way around it, as the scarce economic resources backing these financial assets have been consumed through the sophisticated redistribution mechanisms of innovative financial instruments and deficit spending. Unfortunately, there is no such thing as a free lunch – the Baby Boomer generation has had an extra lunch today, but will have to skip the lunch tomorrow. The economic crisis is here and hyperinflation is on the way.

 

In conclusion, let us reiterate: “Don’t say you haven’t been forewarned.” But of course, this warning is just as good as giving a moralizing speech about drinking in a packed bar – no one would listen anyway. However, you have been warned – protect yourself, buy gold! '

 

http://www.financialsense.com/editorials/p.../2010/0316.html

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They did mention that Soros thought it was a bubble.

 

As in Soros stated that "he thought it could become a bubble"?

 

Given the toilet paper nature of the Dollar, Euro and Pound currently, I don't think the balloons have even been taken out of the packet yet.

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They ran a similar story when gold hit $1000 for first time

 

Indeed. "Asians saving in the form of precious metals shock!"

 

These stories only have meaning when gold reaches a significant milestone in the West.

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