# Gold and China/India



## 77TRADER77 (28 April 2008)

With China emerging as the new world economic power and the chinese love of everything GOLD and India setting up its own GOLD Dealing Index for its people..(they distrust Gold Price setting in London from what I have read)...Is it not logical that world demand for GOLD as the chinese become wealthier and Indians tag along, will rise to as yet unseen new high levels.

Watch what China does on the GOLD front on its Exchange. 

Already Chinese traders want the US buyers to pay contracts in British Pounds because the US dollar is not worth the paper its written on given they just keep printing the stuff like daily newspapers that we all know are thrown away 24hours after they have outlived their usefulness (value).

With low interest rates the people of the US will borrow more green stuff than ever before eventually leading to the logical conclusion that World Economic Power is waning and wobbling as new Economic Powerhouses such as The Euro and Chinese currencies make significant ground. 

This is just the writers opinion and not to be taken as investment advice as are all my postings.


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## numbercruncher (28 April 2008)

One of these days Im going to become bullish on the USD.

Id love to see a currency back by gold though, just like the good ole days


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## Spanning Tree (28 April 2008)

Can someone tell me why the gold standard is so good? Last time I was in America I met some weird Southern guy who said he wanted the US dollar to be on the gold standard because he was worried about inflation. If you don't like the US dollar, why not just carry around gold coins and do all your transactions in gold coins? I don't get it.


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## refined silver (29 April 2008)

> Spanning Tree;287721]Can someone tell me why the gold standard is so good? Last time I was in America I met some weird Southern guy who said he wanted the US dollar to be on the gold standard because he was worried about inflation.




Because 5,000 years of human history says every paper currency ends up worth zero. 

Human nature being what it is, the temptation to just print money and inflate the value away is just to great. The only thing gold does is force discipline on the money supply, so it can't be increased at will by politicians. 

There will be gold backing for currency again, to restore discipline and trust after this system breaks down, but it won't be in quite the same form as before.


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## Miner (29 April 2008)

refined silver said:


> Because 5,000 years of human history says every paper currency ends up worth zero.
> 
> Human nature being what it is, the temptation to just print money and inflate the value away is just to great. The only thing gold does is force discipline on the money supply, so it can't be increased at will by politicians.
> 
> There will be gold backing for currency again, to restore discipline and trust after this system breaks down, but it won't be in quite the same form as before.




Lovely Refined Silver.

You are right. More to it - over the years gold through ornaments become tangible assets for Indian women. Such gold ornaments are not only sign of prestige but also assets which can be mortgaged or sold at appreciated value than depreciated value when some one needs. The purity is an essnce to get the value of gold almost to true weight. I remember to have made a gold ring hand crafted with diamond in Kalgoorlie in 1995 and costed me that time $2350. I went to same jeweller to sale it off and he wanted to offer $300. One reason was gold was 14 carat and not 22 carat as worn in China and INdia. There were other factors too.
Size of gold is very small to hide in jewellery box for a significant value. 
Gold is offered in Indian temples to get short cut blessings  from god . 
This was also the reason why foreign robbers like Chenghis Khan etc came to India to plunder gold from the temples.
Irony is however India or China never had any known high value gold mines excepting a few. How gold came there in 5000 years back (No AMerica or Australia existed- only Egyptians, Greek and Latin Americans existed)


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