Why buy gold........Part of an article by Richard Russell... Auction Prices Are Off The Charts Because Of Frantic Chinese Bidding
I’ve been reading reports from the Sotheby’s and Christie’s auction. Prices are off the charts and I mean off the top of the charts. Record prices are now commonplace. Obviously, investors all over the world are bidding for tangible items – anything from diamonds to classic cars to apartments in New York City.
Much of the sky-high prices are a result of frantic Chinese bidding. The Chinese know well the value of tangible wealth and for the first time, diamonds are welcomed in engagements and as visible statements of the owner’s wealth. India too has joined the craze to own tangible wealth. Over the centuries, India has been a huge buyer of gold as a statement of individual wealth. But more recently, China has led the world in accumulation of gold. China is now the world’s leading miner of gold and probably the planet’s leading accumulator of gold.
People Need To Own Physical Gold And Silver
In their frantic effort to hold back deflation, the central banks of the world are doing everything possible to stir inflation. Only two currencies resist devaluation. They resist it because they can’t be manufactured by printers. The two currencies I’m talking about are silver and gold.
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Late Notes – As if beginning to discount some ugly future event, the stock market stepped back from its recent record highs. As I write at the close, the Dow is down 107 and under 18,000 again. Transports are down 40 and the Nasdaq is down 21. To wind it up, Utilities are down a point, which makes it a negative day.
Interestingly, margin account on the NYSE are at a record 507 billion. There are four distribution days on the Nasdaq and the S&P. For want of a better method, I’m placing emphasis on large numbers such as 18,000 on the Dow and 8,000 on the Transports. Hopefully, my subscribers are sitting with only physical silver and gold and are watching what may be a period to remember.