John Galt
Over the past five years, China's demand for gold has increased at an average rate of 13pc per annum, the council said.
But it said Chinese "consumption intensity" lagged substantially behind other major markets and that, while China was the world's sixth largest official holder of gold, its gold reserves currently accounted for less than 2pc of total reserves, which was "low" by international standards. But the vice-governor of the China's central bank said in December that Beijing would not buy gold indiscriminately.
So let's split hairs. Assume on the pessimist point of view that they only increase demand to the point where 4% of their reserves are in gold. If you are a resident of the United States or United Kingdom, soon to be trapped with capital controls, "security" concerns, and the risks of a fiat currency collapse, it does not take a tremendous amount of consideration to think that the consequences of an acceleration into the police state scenario is not that far-fetched now, thus destroying your personal wealth and freedoms. The Chinese actions will thus create a shortage in the metals and that is dangerous for the unprepared. Few serious Bubblevision types dare to utter the phrase "buy gold" yet this is no longer a call for an investment grade metal, as so illustrated by the doubts now swirling on the ETFs, true delivery capacity of the various "paper gold" instruments, and the United States government's willingness to turn a blind eye as naked shorts attack the industry from the exploration companies to the actual metal(s) themselves (You have to include silver when it comes to naked if not illegal shorting activity).
Thus you must always remain the contrarian and if possible, view the metals as a survival tool. The precious metals are called "precious" for a reason and it is not because they look good around one of the hookers that New York's state officers seem to enjoy. It is because the rarity of the metals themselves and the monetary valuations that they have always maintained throughout history still holds true. China will continue to accumulate the various rare earth and precious metals. America and the United Kingdom will continue to depreciate and degrade their paper fiat currencies. Silver and gold will continue to hold a stable reserve of value as the monetary metals that they are, as validated by the collapses of the Babylonians, Greeks, Romans, Arabians, and other empires throughout history. No matter the civilization, their precarious hold of the moment or domination for centuries, gold and silver are still as valuable now as they were thousands of years ago.
So who do you trust? The idiot box full of the liars who never saw the crisis coming or the metals themselves and the security of their historic valuations no matter what kind or whose government dominated the world scene?
My money is on REAL money
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