Wednesday, September 1, 2010
The Keiser Report
Ratio Analyses Suggest Gold & Silver will go higher
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiwQB0tFajZ-LHLtGDcXSFq3uDIQ82IWnAlRO6Io2T2CW9IkZrYzhXUjdDdMOzpOj9Bq6ua7NSLF9l6gKjm22vBGfEh46xZMqePlXbAB5dEu5C0HwZTO-_TsG6ylrPNdJel5N7VpbHIf2g/s400/ancient+gold+%26+silver.jpg)
Bullion-Buying In China And India (part 2)
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In fact, much of the gold/silver acquired under both of those categories simply represents "savings", rather than "investment" or the mere purchase of a luxury good (i.e. jewelry). Because of this inaccurate analysis, I suggested that (Western) analysts will likely consistently underestimate long-term demand, while overestimating the amount of "scrap" bullion which would/will return to the market.
While much of this analysis applies to both India and China, there are clearly important differences in these two, critical markets for precious metals. Previously, I pointed out that China had only recently removed/relaxed policies which severely restricted the ownership of precious metals. An astute reader immediately provided me with two, important observations.....read on