David Collum: China planning to sucker its gold bugs?

Chris Martenson plays host to David Collum, who presents his annual personal investment report, which is worth reading in full. The prose is very sparky and the scorn and indignation laid on good and thick.

For the impatient, I can report that he begins by describing his own asset allocation:

With rebalancing achieved only by directing my savings, I changed nothing in my portfolio year over year. The total portfolio as of 12/31/11 is as follows:

Precious Metals et al.: 53%
Energy: 14%
Cash Equiv (short duration): 30%
Other: 3%

… which tells you where he stands in the bull/bear debate.

Here’s a sweet little piece of possible future villainy:

[The Chinese] are rumored to have 1,000 tons of gold with a target of 8,000 tons. How do they buy 7,000 tons? They bid for it like everybody else. Chinese citizens have been encouraged to save using gold (a defacto gold standard and covert accumulation). Although the gold bugs in the US occasionally discuss confiscation, I think the Chinese proletariat are the ones being set up. 

That is so nasty and cynical that it seems almost inevitable.

INVESTMENT DISCLOSURE: None. Still in cash (and index-linked National Savings Certificates), and missing all those day-trading opportunities.DISCLAIMER: Nothing here should be taken as personal advice, financial or otherwise. No liability is accepted for third-party content.

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