Jewellery Shines in China By Charles Kubach, Mine-Engineer.Com 13 Sep., 2009 The high price of gold and the world wide economic slowdown has depressed the jewellery market worldwide. Especially in the largest consumer nation India, where it is off by 60% over a year ago. In India, this is due primarily to the rise in the value and price of gold, as investors fleeing the worthless paper currencies, flock to gold to preserve their assets. It does not take a rocket scientist to see that many world governments spend much more than they take in and now that the USA is joining in this self destructive practice, inflation and high interest rates are just around the corner. During inflationary times, currencies become worth less each day, and gold becomes worth more. Never has this trend varied in the recorded history of the planet. Further as the USA is preparing to join the Has Been Countries of Europe (let's face it, the only accomplishments of European countries in the past 100 years is to be a doormat for invading armies) by embracing the European Political System of Socialism, so too shall we slide into the "Has Been" nation status, as well. For in socialistic countries, there is no incentive to do well, or to fight for anything, since the government will promise to give you "what you need" and everyone will have the same level of nothing. As they say, misery loves company. Socialistic countries also like to control the media, which is currently ongoing in the Land of Freedom, as all major news outlets cheer the Obama Policies and deride any and all critics. There are a few objective voices out there, but very few. So, with the propaganda media in full swing, everyone is convinced that what the government gives is good, and they really do not need anything more. Which brings us back to China. China has the most robust, capitalistic economy in the world, so it should be no surprise that the jewellery industry is flourishing there, as well. Last year, as the jewellery industry shrank by 30% or more in most countries, it grew by 40% in China. It is projected to grow into the foreseeable future, as well. It will grow, even with +$1,000 per ounce gold. That is capitalism at work, as the citizens of China start companies to produce the products the world and it's own citizens requires, making reasonable profits for their risks and efforts, they will increase their disposable income, as the remainder of the Left Winged Socialist world sees their disposable income disposed of. But have no fear, US President Obama will "give " the citizens "free health care", green legislation to regulate every facet of their lives, and the least talked about "gift" from the White House, is the enormous bill in the form of higher prices for virtually everything, higher taxes, higher fees, and American citizens will forget what disposable income is, because it will be only a fond memory for most. For the price of gold this will mean that the yellow metal will close out the year at a all time high (probably around $1,200/ounce), inflation will begin its upward spiral next year and gold will be the best source of preserving wealth in the next couple of years. Bright future for gold, dim future for those embracing socialism, and accepting government "gifts". Remember, governments do not have any money, they only have your money. The more they spend, the less you have. (Economics 101, which is not taught at Harvard). "The Sign of an intelligent person is not the realization of all they know, but rather the realization of all they do not know." Charles Kubach 1979 Return To Mining Information Page