Gold To Rise - Real Chinese Gold Demand Higher Than "Official" Demand
Frank Holmes joins Lawrie Williams, Koos Jansen and many others in questioning the "official" Chinese gold demand numbers. Real gold demand is likely much higher than the official numbers
by Frank Holmes
Submitted by Lance Roberts via RealInvestmentAdvice.com,
Last week Frank Chaparro penned an interesting note:
“It looks like this bull market just won’t quit. Friday marked the 2,003rd trading day since the stock market rally began back in 2009, making it even longer than the bull market that preceded the 1929 crash.
There is a cost to Fed Policy!
As John Rubino eloquently puts it, "when the history of these times is written, former Fed Chair Alan Greenspan will be one of the major villains, but also one of the greatest mysteries. This is so because he has, in effect, been three different people." Greenspan started his public life brilliantly, as a libertarian thinker who said some compelling and accurate things about gold and its role in the world. An example from 1966: "This is the shabby secret of the welfare statists' tirades against gold. Deficit spending is simply a scheme for the confiscation of wealth.
After a week of jawboning markets into believing that the March FOMC meeting is now "live", it appears China has decided to send a little message.
After weakening the fix by the most since Jan 9th, Chinese money market rates are soaring (1 week CNH HIBOR up 303bps) despite notable liquidity injections...
Of course an unexpected rate hike in March is an implicit tightening of the world's financial conditions and thus liquidity withdrawal... reversing recent improvements in global dollar liquidity.