“Paulson and Soros are certainly no dummies,” he said. “It’s safe to say that it’s a clear indication that owning some gold may not be a bad idea.”
From MarketWatch today quoting Kevin Kerr on gold…
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There is also “the potential for greater demand from unreported purchases by the People’s Bank of China, should they decide to again report an increase in their gold holdings,” he said.
Within the gold market, there is unconfirmed speculation that China plans to buy up to at least 5,000 to 6,000 metric tons of gold and that it will start to buy during this year, according to Kevin Kerr, president of Kerr Trading International.
If China buys this much gold, that would exceed annual, global production of gold, he said. “We do not have enough gold for China to buy that much, and it will take China time to purchase this amount of gold.”
Mine production has averaged about 2,602 metric tons per year over the past five years, according to the WGC.
“There’s a significant discrepancy between domestic gold demand in China and the level of Chinese gold imports and production, and apparently this gap is being made up by central bank gold purchases.”
But the “follow the crowd” or “jump the bandwagon” mentality doesn’t automatically apply to gold investments in the current trading environment.
“It seems there is a groundswell building … right now as buyers big and small seem to be dipping their toes back in the water here and adding more gold,” said Kerr. “This could be the catalyst that sends gold over $2,000” an ounce.
Reuters
Hedge-fund manager George Soros
“Paulson and Soros are certainly no dummies,” he said. “It’s safe to say that it’s a clear indication that owning some gold may not be a bad idea.”
