In an earlier post I wrote about how Central Banks around the world have been busy buying gold bullion. I also mentioned that in China consumer demand for gold is down. And that’s true. Consumer demand for gold in China has fallen because their economy is facing some turmoil of its own. Working people have …
Plenty of people think gold will make them rich if and when we dive into total economic collapse. The theory goes that if paper money becomes worthless, the value of gold will skyrocket. Suddenly everyone with a few gold coins in hand will become immeasurably wealthy. Well, there is a problem with that scenario. …
People behave in curious ways. And human behavior when buying gold is no exception. But before we focus on gold, let’s take a look at when and why people buy just about anything. Look back to the tech bubble of the late 90s. Smart investors jumped in early. Amateur investors kept on buying as technology …
Once again, Wikileaks gives us an insight into areas most politicians would prefer stay hidden. Here is an excerpt from a cable published by Wikileaks, and sent from the US Embassy in Beijing in April, 2009: 3. CHINA’S GOLD RESERVES “China increases its gold reserves in order to kill two birds with one stone” “The …
National central banks buy gold bullion for the security it provides. While currencies can become devalued to such a degree that they become almost worthless, that won’t happen to gold. Gold prices may rise and fall, but they will never fall to zero. In fact, at the exact time that paper currencies go into free-fall, …