You are talking about GOLD, are you not?
Are you aware that Russia just announced it is doubling its gold holdings? Or that China is encouraging its citizens to buy gold, and not only as jewelry?
Do you really think that Gold closed at $503 today, because more Indians are buying gold jewelry today?
$503 eh? Strong close.
That's intersting news about Russia and China. Thanks for the ping.
When a few hundred million Indians and Chinese buy a piece of gold jewelry, that creats a demand that didn't exist a few years ago. So yes, a component of the price is driven buy demand for jewelry in Asia. A fraction of an ounce multiplied by millions of new rings and bracelets can add up quickly.
Fellow Gold Bug,
I am worried that the Russkis are hyping gold right now, then will dump their mysterious gold reserves. They mine it like mad, and no one really knows how much.