This is very significant for the Gold and to a lesser extent Silver markets. In the last bull market in Gold and Silver, where Gold hit a high of $850/oz and Silver $50/oz in January 1980, the price rise was driven mostly by 1 - 2% of wealthy US investors, private wealth fund managers and a few Middle East sheiks and princes trying to protect themselves from the loss in value of the US$. What a difference 30 years makes, now we have huge pool of millionaires in a region that has a cultural affinity with investing in Gold (and increasing so in Silver) what do you think what will happen when 1 - 2% of these investors investors turn in mass to Gold to protect them against a falling US dollar (and dollar linked Yuan/HKG$)? And with QE to infinity a declining US dollar is given.
Got Gold? Yes, I bought some before all those Chinese millionaires did.
No comments:
Post a Comment