China Needs More Gold Gold Will Shine Brightly By Charles Kubach, Mine-Engineer.Com August 7,2010 Although China is the world's largest gold producer, it's citizens have recognized the inherent value of the yellow metal, and since their capitalistic economy is booming, they have money to spend. They are buying gold, and gold is getting scarce in China. The Chinese government also announced that they were removing some restrictions on gold, allowing their banks a better platform to increase trade, and also allowing foreign financial institutions membership on the Shanghai Gold Exchange. In the first half of this year, the volume of gold traded increased over 59%. Now, that is demand! What does this mean for gold, now that China's citizens have found the value of gold in troubled financial times? While the "sophisticated" countries of Europe and the USA spend recklessly and endlessly to provide more "entitlements", and piling up ever increasing debt for future generations, the Chinese are doing what any smart investor would do, buying gold. Gold has not lost any value for years, while stocks are but a fraction of what they once were, and many stocks do not pay dividends, or have drastically reduced dividends, gold is quietly holding its value, and increasing a bit in value, from time to time. A number of Euro economies are still on the brink, and could topple any day. The Obama administration is still pursuing a Socialistic Economic Policy, of big government and even bigger government spending, which can only end in failure. Unemployment has not improved any, except the "official" number drops a tenth of a point here and there, due to people simply stopping looking for jobs that are not there, and no longer being "officially" counted as unemployed. The Obama Nitwits can not understand why companies are not hiring. After all they (business) all make over $250,000, they are all going to have to pay ever increasing costs of yet to be passed regulations (Carbon, energy, etc., etc.) and ever increasing taxes, so why expand in the midst of dire economic policies, aimed at destroying business? Lets face it, a owner or CEO of a company is probably just not as stupid, as the Obama Administration obviously believes they are. Businesses provide jobs, government spending and regulations make it more difficult for business to function. Economics 101. Economists say that when governments spend money on projects designed to create jobs, shovel ready or not, it is only about 40% efficient. That's right 40%, the other 60% is wasted. So, the bailouts and stimulus programs just tossed 60% of the trillions of our tax dollars down the drain, and they are proud of that. They plan on running for re-election on their records of record spending. There is no question that the first bailout was necessary, to prevent a depression, but the rest were just money down the drain, and the fact that the economy is in the crapper is proof of that. The idiots of the Obama Admin will say ignorant statements like" well it would be much worse if we did not spend the money", because like dark matter and space time fabric, it is not possible to prove. And the destruction of the US economy by the Carter, oops, the Obama administration continues, until the American people wake up and clean the US House of Representatives and the Senate of the liberals that have always embraced senseless spending and government control of everything. If the people do not make a correction in November, the destruction will be substantial, and some results may be permanent. So, what does this bode for the golden metal? Nothing but good news. Gold will end the year well above $1,200/ounce, and if corrections are not made in the US economic policy (i.e. Fiscally Sane Republicans elected to office), the US will end the year with nothing to look forward to other than 12 more months of high unemployment and more stupid, costly legislation from the Obama administration. Gold has never looked better, the US never dimmer. But you have to admit, that is change that the majority voted for. I did not, but will end up paying for it, unless I re-locate to another country. And this option is looking better with each piece of legislation from the Liberal Nitwit Obama Administration, the House and Senate. "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