By Charles Kubach, Mine-Engineer.Com
15 Jan., 2012
For many years India has been the largest consumer of gold, as Indian culture makes gold a symbol of and wealth, prosperity. All Indians that can afford gold have some. As the largest sector of gold consumption in good economic times, is the consumption of gold as jewelry, India plays a large part in the demand and therefore price of gold. So, what if there were two Indias? Gold would go wild?
Well, the Auriferous world is about to have two "Indias", and China is about to become as large a consumer of gold as India, then China is projected to overtake India. The economy is good in China, as they battle inflation, their economy is growing at about 8.5% a year, and the demand for gold is growing daily, from ordinary citizens, as well as the wealthy, wanting to protect their assets.
So the tantalizing thought of another large consumer of gold joining the rest of the gold holders is like sugar plum fairies dancing in the heads of gold miners. More like dollar signs spinning about at dizzying speed, working them into a frenzy, as they attempt to keep up with demand for their soft, yellow metal.
So for those that say 2012 is the end of the Gold Rush, they are wrong. It is the beginning of the next Gold Rush, which will end with gold soaring into the heavens of prosperity for both those that produce and sell it as well as those that hold it. Those in the current Obama administration hate gold, because they can not print more of it, and they have no idea how to produce it. They would like to see gold back in the cellar, so the only instruments of wealth are the worthless paper Washington doles out with great pomp and circumstance.
Alas, they will be disappointed, because gold is the one thing that retains it's value as the stupid spending and pilfering of public funds continue under Entitlement Economic Fallacy of all too many world governments, especially those Clowns in Washington. Gold will fare well this year, and soar to new heights next year. Many pundits of the yellow metal world peg $2,000/ounce as the high this year, and I think it will top that as a Euro entitlement country goes belly up, instead of adopting sound economic policies and admitting that no government can give its citizens everything they want. But rather, it is the responsibility of the citizens to devise a method of achieving their dreams and wants, and this is how greatness is created and prospers. Those Entitlement politicians would not know Greatness if it bit them in the nether regions, because they are mearly luke warm, bland, clueless bureaucrats of a failed entitlement system. The only thing great about these bums is their propensity to Fail Greatly.
"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
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