Videocast: China's Boom and Lust for Gold

Highlights:

0:20 – The dollar has rallied on the false premise that the United States is the only major central bank in the world that will be ending its quantitative easing.

1:53 – The US economy is weaker than the economies of Europe and Japan. When investors realize this, they will return to gold.

2:30 –  China is the world’s largest holder of US dollars. In preparation for a devaluation of the dollar, the Chinese have been moving their reserves into gold. 

3:09 – The launch of the iPhone 6 highlights the difference between the US and Chinese economies.

5:02 – China’s official gold holdings are unknown, because the Chinese don’t want the world to know how much more gold they intend to buy.

6:00 – There will be support for gold at the $1200 level, because there are big buyers for the metal in emerging markets across the world, not just China.

6:32 – When confidence in the US dollar disappears, people will turn to gold. When that happens, $1200 per ounce gold will seem cheap.

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