The second quarter numbers for gold demand are the second highest quarterly total in history. It’s somewhat surprising when you look at how high the price was during that time span. What is no surprise is who is buying gold.
China and India are still leading the way in purchasing gold. China leads for investment and India for Jewelry.
Since the late 70′s when China brought about economic reform its citizens have been prospering in their own business enterprises. Thus, they now have more disposable income and many of them are investing it in gold. Couple that with the fact that their government themselves is also gobbling up large amounts and you can see why China is the leader in demand.
On the other side of the coin, America is doing the exact opposite. Gold is the last thing on the mind of the U.S. Government, they like paper better. In fact they’ve been printing worthless paper money so fast that is has wrecked our monetary status. It ruined out credit and our credibility.
There are a few American citizens buying gold but the majority are snubbing it. This pacifist type of thinking didn’t work when we demanded higher wages and forced many companies out of business and out of the country. In fact, it resulted in a near economic collapse of our country. But that still hasn’t sank in, we still force companies to pay wages they can’t afford.
Now we see the rest of the world running from the U.S. dollar like it’s the plague. But the American people, just like its government, refuse to acknowledge the probability of a financial disaster about to be unfolding. They continue to worship the greenback and write gold off.
In a few years, when America becomes a third world country financially, they will be wondering what happened. They’ll still be making foolish statements like, “You can’t eat gold”, or “you can’t keep warm with gold.” But when the dollar won’t buy oil and food from other countries, and gold is the only money unit that will, what will they be saying then?
China didn’t propel themselves into a top financial power by accident, they made the right moves. If American continues to make the wrong moves they’ll be in the same boat financially as they are in commerce.
When future statistics are released, and you look at who is buying gold, America better be on the top of the list or we may find ourselves very cold and hungry!
