China and POG

China is now the biggest producer and consumer of gold.  Therefore, China now dictates the POG on a longer term basis.  Short term POG is still a mystery to me.  Last night, it jumped.  At a price of below USD$1200 per oz, many of the big gold producers are suffering.  The law of economics is dependent on the supply-demand balance.

I have not wavered on my belief that gold has been oversold but I do not have spare cash to top up gold miners in my super fund anymore...  with thanks to Uncle Wayne from Queensland.

With a big leap yesterday, I can expect to enjoy a ride on the ASX on Monday, especially since the US market was up on Friday end of trade.