Two articles caught my eye this morning. First in Zero Hedge is this story: Gold “Fever†in Asia and Central Bank Demand Could Cause an “Earthquake†in the Gold Market.
The giant middle class populations in Asia, especially China and India are buying physical gold bullion in volume due to concerns about global growth, in order to protect themselves from stubbornly high inflation and concerns about the declining value of their respective paper currencies.
Gold demand in China alone is expected to rise about 20% to near 700 tonnes this year from 570 tonnes in 2010.
And, the story goes on to say that this is not a one off demand for 700 tonnes, but sustainable!
The second story comes from Ed Steer’s “Gold and Silver Daily.”
All the major currencies are down almost 80% since 2001 in terms of Gold. Do you see why the Chinese and Indians are buying Gold? They want “…to protect themselves from stubbornly high inflation and concerns about the declining value of their respective paper currencies.”
When will Americans in general wake up?
Finally, look at what’s happened to interest rates in Greece, The betting is for default. With Greece leading the way, how long before the U.S. suffers the same fate?
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