Aug 11 2011, God, Gold and Indians

Thursday, Aug 11, 2011

It is fascinating to see the western analysts wondering why the price of gold is going up and why Indians and Chinese are buying all the gold.
You cannot eat Gold or use it for many industrial purposes..!!???


Tell that to the ones who are hard-wired to hoard gold jewellery. The Indians and the Chinese.

Their Hoarding mentality is something that the people in the west fail to understand.

In the west, people believe in spending, improving their living standards there by contributing to the development activities and there by having liquidity in wealth.

But the Indians believe in hoarding and not much investment in the development and improving their living standards. Thats why they appear poor and seem to have sub-standard living compared to their western counter-parts.

But don't be fooled, its not because they are poor (thou they appear to be), they are rich, their riches are stocked up in Gold and jewellery. They just don't have the inclination to invest in development and improving their living standards and been liquid financially.
Those among them who have broken away from the traditional thinking have become richer (appearance wise) or have learnt the art of diversified investment into development. Goes with out saying that about 50 percent of the worlds 10 richest people are from the 3rd world countries.

Every one that gets married is showered in Gold presents of Bangles and Chains. On a conservative count, even if 0.10 percent of Indians get married, thats about 500,000 brides in India alone who on a average need about 2 kgs of gold. (also some percent of jewels are passed down from parents).

So when people say that the demand is about 30% more than the supply of gold. It only makes gold go up higher.

And given the fact that Aug to Nov is the peak marriage and festival season, its just going to go up.

I would take a major catastrophic in the Asian region to bring down the demand of gold.

Then comes the collapse of the Europeans. The brits, french, spanish, portuguese have all been enjoying the wealth they looted and plundered from the hard working people of the colonies. And now after living like spoilt brats they are now waking up to face the reality, with greece already screwed up, next in line Spain and france.

I hope the day soon comes when I get to see the economies of France and UK collapse and all those sick snobbish bastards in Europe are made to work hard for a living and earn their bread. They have been partying for quite long on the stolen goods from India.

The future of France will be known by next week. keeping fingers crossed for it collapse. And soon the rest of Europe. :)