Post by Admin on Aug 12, 2004 10:24:18 GMT -5
I thinks Savant used that term in one of his columns. I use it today in a slightly dfferent context.
1) A changing Chinese gold reserve policy could eat up world gold production over the next two years! China wants to increase its gold reserve from a paltry 14 million ounces to more like the U.S. standard (the U.S. has roughly 262 million ounces of gold in reserve -- nearly an ounce for each of us). While China could never acquire a 1.2 billion ounce-of-gold-per-citizen inventory (it would tie-up over 14 years of the world's gold mining production), the country is expected to dramatically increase its reserves to hedge the weakening dollar. Meanwhile, with relaxed rules of gold ownership, Chinese consumers could easily push gold to record highs.
2) India, likewise, deregulated their gold trade eleven years ago. Since then, consumer demand there has been averaging 31 percent annual growth! Bear in mind that India's population is 1 billion and the nation is already "consuming" about 38 percent of the world's annual gold production.
3) The rising Muslim gold dinar -- the Middle East's popular new gold bullion coin -- will also cut deeply into gold production, spurred by fear over war, terrorism, and the weakening dollar.
4) If Middle Eastern demand soars to the tune of $10-20 billion in new gold purchases, it could essentially take gold "out of circulation and push its price to $2,000 an ounce," one analyst has SPECULATED!
Notice that speculation is in all caps. Points 1-3 are valid. #4 is speculative.
Blessings
CT
1) A changing Chinese gold reserve policy could eat up world gold production over the next two years! China wants to increase its gold reserve from a paltry 14 million ounces to more like the U.S. standard (the U.S. has roughly 262 million ounces of gold in reserve -- nearly an ounce for each of us). While China could never acquire a 1.2 billion ounce-of-gold-per-citizen inventory (it would tie-up over 14 years of the world's gold mining production), the country is expected to dramatically increase its reserves to hedge the weakening dollar. Meanwhile, with relaxed rules of gold ownership, Chinese consumers could easily push gold to record highs.
2) India, likewise, deregulated their gold trade eleven years ago. Since then, consumer demand there has been averaging 31 percent annual growth! Bear in mind that India's population is 1 billion and the nation is already "consuming" about 38 percent of the world's annual gold production.
3) The rising Muslim gold dinar -- the Middle East's popular new gold bullion coin -- will also cut deeply into gold production, spurred by fear over war, terrorism, and the weakening dollar.
4) If Middle Eastern demand soars to the tune of $10-20 billion in new gold purchases, it could essentially take gold "out of circulation and push its price to $2,000 an ounce," one analyst has SPECULATED!
Notice that speculation is in all caps. Points 1-3 are valid. #4 is speculative.
Blessings
CT