Chinese Investment For Gold Growing, take a look!

From LINK

BEIJING, Sept 22 (Reuters) - China is more likely to keep purchasing gold from its domestic producers rather on the global markets if it decides to increase its stockpile, a commercial banker said on Tuesday.

And...

Analysts expect China to add to its gold holdings as a hedge against dollar depreciation, and speculation is swirling that Beijing will buy some of the bullion being offered for sale by the International Monetary Fund.

And...

Chinese officials have said they are keen to diversify the country's $2.13 trillion of official currency reserves, some 70 percent of which are invested in dollar-denominated securities

Oh and...

Lu said she saw growing Chinese investment demand for gold, especially gold-linked products that can be more easily traded than bullion. These include "paper gold" sold through banks and margin trading on the Shanghai Gold Exchange.

And lastely...

She said global economic uncertainty and the prospect of further dollar weakness could push gold up to $1,200 an ounce by the end of this year. The metal rose about $9 on Tuesday at $1,011.55. (Additional reporting by Zhang Shengnan; Editing by Ken Wills)

This just goes to further the facts of the falling US dollar, stock up on the gold everyone, because that's what it's going to come down too (yes I know this isn't breaking news but it sure as hell helps depict what sort of future we have to come!).


[edit on 26-9-2009 by highlyoriginal] fixed page setup

[edit on 26-9-2009 by highlyoriginal]

My bet is gold will drop in value by $100 or so within 2 months... Just because.

In reading your title,... I wish I knew how to grow gold.

[atsimg]http://files.abovetopsecret.com/images/member/10f271904667.jpg[/atsimg]

Momentum has turned negative (Slow STO not pictured) , but the moving averages favor a shallow pullback here. I'll place my bet at 960-970 , and cross my fingers for a corresponding 3-pip $ rally to resolve an extremely oversold $USD.

A brief pullback & consolidation , plus a tsunami of bullish fundamentals....

German Bundesbank to refrain from big gold sales this yr

should be sufficient to coil-the-spring for a solid 4Q advance.

reply to post by OBE1


So in your opinion do you think investing in gold would be the best bet right now, or would one wait it out a bit longer (as some are saying the value will drop a bit soon)? Although after doing some research (not a lot though) it seems like it's going to top out a bit higher, but that's just my opinion...

reply to post by highlyoriginal

Hi highlyoriginal. I doubt there is a more polarizing asset than Gold...neutrality a foreign concept...opinions as volatile and extreme as price movement. Within this frame , we have the esoteric technicians warning of a potential retracement to 650..vs..the more conventional analysts predicting a brief correction followed by a break above 1033.90 by EOY.

Wave count may favor the former , but fundamentals , trend , and seasonality favor the latter (my camp).

Would I open a new position tomorrow ? No , the negative COT structure says wait for the dust to settle. That massive commercial short position represents the most powerful moneyed interests on the planet; JPM , HSBC , Goldman et al , and the regulators have their back. Move with 'em , not against 'em.

but....

for the investor that's done his homework , studied the fundamentals...the investor that understands the primary trend...to a degree , trying to time a low-risk entry becomes academic imo.

Imo Gold goes higher...much higher...all the rest is intermittent noise. I've heard the same tired arguments against Gold from 265..to..1000. Wrong then...wrong now.

Get right and sit tight applies. Gold needs strong hands.


At 63 , I'm old enough to remember 1980...waitresses touting Gold...buyers & sellers lined-up for blocks outside local coin shops...everything from broken silver candelabras..to..grandpa's gold bridgework....silver refineries with 3mo backlogs.

How many of your close friends and relatives own bullion , let alone a serious allocation ?

We're nowhere near the mania phase.


**This post should not be construed as a recommendation to buy Gold , that's not my job , and besides , I'm as fallible as the next guy**

I could be wrong..but I've always viewed gold as a way to hold your wealth..that is it usually maintains its value over time, not as a way to make a lot of money..

When gold goes up in value, its usually because the currency its being compared to drops in value (not so much because the gold is increasing in value). And sure that means the gold is worth more..but as an example; you have $100 in gold 1wks worth of groceries is $100. A week later your gold is worth $500 (yay!!) So you cash it in, but now it cost $500 to buy that week of groceries..so did your wealth go up? Or did you just maintain it.

I'm rather amateurish at all this tho, and I could be wrong?

And of course there is all the problems associated with keeping the gold itself, and preventing governments from taking it when they feel the need to.

We haven't even begun to see the wave of inflation that is going to swamp the entire globe in just about every paper instrument known to man as each and every nation tries to print its way frantically out of certain doom. Monetization takes a while to hit the broader economy but when it does, knock-on effects can be astounding.

Right now the banks are sitting on hundreds of billions (borrowed from the fed/treasury) and not doing anything with it, but the clanging at the gates of the pitchfork-and-torches crowds will eventually grow loud enough that SOMEBODY (probably the govt) will have to start "injecting" cash into the broader economy. IF they go down this road everyone will feel great for 3 or 4 months; it will seem like its back to the good old days, the value of real estate and stocks will return to previous highs, debt will be wiped out in real terms and a sigh of relief will be breathed everywhere.

The problem is that the fix will be all too temporary. With all this cash sloshing around and people returning to their warped debt-based ideas of what they consider "normal," there is the potential for overshoot leading to stern inflation or even hyperinflation. There are two ways out of this, neither of them pleasant: A) Jack up interest rates the old fashioned way or B) print more cash. Decision "A" will bankrupt millions of citizens and businesses who are barely able to pay the currently ridiculously low rates as it is. Decision "B" justr makes the general problem worse.

This is not just a US or UK phenomenon, by the way. Its global.