Gold Rises On China Demand
For months we have heard gold has fallen out of favor with investors. But, someone wasn't listening -- China! The numbers are in! According to the China Gold Association, Chinese demand for gold rose 41% last year to a record 1,176 tons. That number excluded central bank and institutional buying. The Chinese are more secretive in that regard.
Chinese gold production also led the world for the seventh consecutive year. 428 more tons were mined and kept within its borders. It seems China understands the buy low sell high theory.
Meanwhile, back in the ole USA, the media would have us believe gold is finished as an investment. "Get out before the price drops," was the cry. Surely gold is headed to $1000 an ounce or below.
As gold rose past the $1,270 mark today, it crossed one line of resistance. It is said, if gold can breach the psychological $1,300 threshold, one could claim a resumption in the gold bull market. The way China is buying, you would think $1300 is a done deal.
Now let me ask you this. If China has been buying gold as the gold price hovered low, near its all-in cost of production, while U.S. investors have been told to sell, who is better equipped to survive a global economic slow-down? Could the rumors be true? Is China preparing to un-seat the dollar as the world's reserve currency?
Remember the golden rule. He who holds the gold makes the rule.
Chinese gold production also led the world for the seventh consecutive year. 428 more tons were mined and kept within its borders. It seems China understands the buy low sell high theory.
Meanwhile, back in the ole USA, the media would have us believe gold is finished as an investment. "Get out before the price drops," was the cry. Surely gold is headed to $1000 an ounce or below.
As gold rose past the $1,270 mark today, it crossed one line of resistance. It is said, if gold can breach the psychological $1,300 threshold, one could claim a resumption in the gold bull market. The way China is buying, you would think $1300 is a done deal.
Now let me ask you this. If China has been buying gold as the gold price hovered low, near its all-in cost of production, while U.S. investors have been told to sell, who is better equipped to survive a global economic slow-down? Could the rumors be true? Is China preparing to un-seat the dollar as the world's reserve currency?
Remember the golden rule. He who holds the gold makes the rule.