Today there has been a TV news item regarding one of the reason for
the increasing price of gold. It showed just one government run gold
dealership in China which has up to 10,000 customers a day and all it
sells is gold for cash, mostly in various sizes of bullion bars with
some other items (not jewellery). The customers were mostly ordinary
semi professional people like teachers, policemen, office workers
etc. It also stated that China has now replaced South Africa as the
worlds largest producer with a new state of the art mine opening
Another news item showed an ATM machine which dispenses small
bullion bars instead of money with more to follow. The bars shown had
Swiss verification markings on them… The price is revised every 10
minutes - this is in either Abu Dhabi or Dubai.
It seems that many have lost faith in ordinary currency for their
savings. However a US investment expert said that that he expects the
price bubble to burst shortly.