The Indian populace owns approximately 15000 tons of gold which accounts for 1/2 of all the gold in the world not held by central banks. I guess these poor sobs will see the value of their gold holdings get annihilated whishing they had bought the good ol USD instead.
Jim Cramer "You Have to Buy Gold" http://www.thestreet.com/story/1062...-gold-rally-is-good-final.html?cm_ven=GOOGLEN Prechter throws in the towel on his gold top calls http://finance.yahoo.com/tech-ticke...llar-Set-for-Major-Rally-Robert-Prechter-Says And finally, Don "It's very simple, Larry" Luskin. Wasn't he a member of the cheerleading Goldilocks crew on Kudlow's show? Now he's a converted gold bug http://goldbasics.blogspot.com/2009/10/don-luskin-gold-will-go-to-2000-newsmax.html
Yeah, like the way the UK sold gold at the low? I think we in the industrialized west, especially the US, are running out of ammo. Just look at our unfunded entitlement obligations, the military costs of wars, and the ever growing interest rate servicing of the national debt. The printing presses are on fire and need L U B R I C A T I O N = low rates! And yes, I have a malthusian view of gold. It is not created, it is found, and finding it is costly as ever, especially as oil gets more expensive. Over a hundred years ago, one of the largest gold nuggets (2,332 oz!) was found just inches underground: Today, we have to turn mountains upside down and inside out to find the stuff, which is extremely energy intensive. I don't see solar cells or windmills having a dense enough energy source to do this, we need cheap and abundant oil for these types of operations: Those tiny trucks you see in that open pit mine look like this up close: And the gold they find is tiny - you have to process all that earth to find it. And that process requires energy as well.
Martin Armstrong: Gold Headed To $5,000 And Beyond! http://www.businessinsider.com/martin-armstrong-gold-headed-to-5000-and-beyond-2009-11
Harry Dent: "Dow 40,000, Nasdaq 20,000 by 2009" http://www.freerepublic.com/focus/f-news/1269555/posts