Gold Stocks in China Falling despite the Bull Market : This would explain why gold and silver prices were suddenly hammered lower early this morning following the news that The Shanghai Gold Exchange has announced additional gold and silver margin hikes on forward contracts effective Sept. 9th. The Chinese are WAY less likely to be satisfied with paper ticket. We are dis-educated.... but it is normal cultural practice for them to accumulate shiny valuable things and pay cash for them. I do think there is a market for gold-paper there and yes it does add to manipulation via futures market but it will ultimately be undone by the physical markets. (unless we get global totalitarian state with money metals confiscated.
I can see this only having a positive outcome on the long term gold prices, it won't be long until we see prices reaching in excess of $2,000 p/oz.
ReplyDeleteAlso interesting to note I have been reading about silver hitting highs near $100 p/oz next year.
Maybe worth having a read of an article on the home page of http://5ilver.com/
I can't believe gold has nearly double in the last 3 years and that of silver nearly tripled, where will this gold run end?