– Asia Buying Gold On Dips – “Empires May Fall, Currencies May Change… Gold Will Always Survive” (ZeroHedge, Feb. 13, 2012):
“The Chinese guys are still buying. Whenever there is a dip in prices, they will buy. There’s no change in their attitude,” said a physical dealer in Hong Kong, who trades gold bars. “They are still buying today, because I think the downside is limited for the time being. Sentiment has improved a little bit.’’
Market focus tends to be almost solely on Chinese and Indian demand but demand is broad based throughout increasingly important Asian gold markets. Demand for gold remains robust in most Asian countries where consumers are buying gold as a store of wealth due to concerns about their local paper currency.
This phenomenon is happening throughout Asia including in Malaysia, Indonesia, Thailand and Vietnam and other large Asian countries (see news below regarding demand for gold by investors in Thailand).
AFP have a very interesting article on Vietnamese ‘gold fever’ which recounts how “stashing gold at home rather than having cash in the bank is a generations-old habit in communist Vietnam”.
And old habits are dying hard even if an ounce of gold bullion can now cost up to US $100 more in Hanoi than anywhere else in the world due to government meddling in the gold market.
AFP quote 60-year-old retiree Truong Van Hue “I still like to keep my savings in gold. It’s safe for retired people like me. I can sell the gold any time, anywhere, when I need cash,” he told AFP.
Vietnam’s love of the yellow metal is centuries-old, rooted in a history of strife, warfare and want. “Empires may fall, currencies may change… gold will always survive,” said sociologist Vu Duc Vuong.
– Warren Buffett: gold has no value (Telegraph, Feb. 10, 2012):
Billionaire investor Warren Buffett has dismissed gold as a valueless asset saying that it has no inherent value. In an article for Fortune magazine, Buffett said that gold investors were pinning their hopes on future demand.
He warned that gold was a self-inflating bubble, created by investors desperate for a viable alternative to property and shares.
The infamous investor warned that investors in gold would be left with egg on their face when the price eventually crashed.
– Max Keiser And Gerald Celente On MF Global Bankruptcy Implications – The JP Morgan Connection – Goldman Sachs – CME (‘Chicago Mafia Exchange’) – Gold, Silver – Syria, Iran – Entire Financial System Collapsing, One Big Global Ponzi Scheme – False Flag, WW III – Bank Holiday, Economic Martial Law – ‘YOUR MONEY ISN’T SAFE’