China buying gold on the dips

Message from yours truly:

I have a lot of respect for China these days; for our own leadership, not so much.

You buy low and sell high. People buying now are smarter than those who are selling.

The Chinese seem to know about contrarianism. To be contrarian is not to follow the crowd, as the crowd is often wrong.  The crowd in America and the West are trusting leaders who don't deserve it.

I note that there aren't too many votes on this article on Zero Hedge. Another contrarian indicator.

Published on Zero Hedge (http://www.zerohedge.com)

Home > Gold: Physical Demand Vs Paper Supply

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Gold: Physical Demand Vs Paper Supply

By Tyler Durden

Created 07/21/2013 - 22:38

From the huge demand for physical gold from Asia to repatriation demands, and from the draining of COMEX gold inventories [1] to the excess supply of paper gold, there is an increasing 'gap' between the perceived 'price' of gold and the cost to get one's hands on the precious metal. Santiago Capital's Brent Johnson [2] provides a brief but complete summary of the various conundra (which we have described in detail [3]) occurring currently in the manipulated metals market. Perhaps the most telling phrase comes towards the end when Johnson notes, "I don't know how to say 'Hunt Brothers' in Mandarin, but it might not be a bad idea to learn."

Greg NOTES:  The Hunt Brothers tried to corner the market on silver in the late seventies.  What he is trying to say is that the Chinese are attempting the same.  My opinion is that they are more likely to succeed than the Hunt Brothers.

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Source URL: http://www.zerohedge.com/news/2013-07-21/gold-physical-demand-vs-paper-supply

Links:
[1] http://www.zerohedge.com/news/2013-07-19/jpm-eligible-gold-plummets-66-one-day-total-gold-fresh-all-time-low
[2] http://www.zerohedge.com/news/2013-07-16/gold-tale-two-markets
[3] http://www.zerohedge.com/news/2013-07-16/things-make-you-go-hmmm-gold