I’m focused on gold and it definitely has a bid right now. I think it’s becoming harder for the bears to drive gold down at these particular levels. Also, China increased their gold production last year. At first glance, what does that mean?
It means that despite dramatically lower gold prices, in the neighborhood of 25% to 28%, China still produced more gold. The interesting thing is China is not particularly rich in gold reserves. So for China to increase production in the face of a declining gold market means they are losing ever-more money, near-term, on the total gold production.
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