I totally agree with the above. The Point i was trying to make was That Gold is actually worth Nothing unless you encounter extreme circumstances. So Gold will only be worth something when everything Else like Paper Money has lost its value. However, at That Point You probably will have other problems.

http://www.economist.com/blogs/easte...ectuals-appeal

I do not see what this has to do with gold buying?
If this is about Ukraine? Then this link was posted in the Ukraine thread a long time ago

Back to gold buying; India is buying gold like crazy at the moment - so why is gold price not reacting?

See earlier posts for context.

No thanks, life is too short

So here we are; gold back over $1240 and oil down to $85 - who knew?

Did you hear how the Chinese bought over 2000 tons of gold last year? Looks like they know something!

I read somewhere else - only a day or so ago - that the Indian government is thinking about reintroducing curbs on gold purchasing. This leads one to think there are a lot of people out there who would like to have some more gold.
With so much apparent demand it is difficult to see why the prices are not higher.
For some reason the law of supply and demand appear to have been set aside.

Why does that mean they know something? What is 2000 tons as a proportion of their foreign reserves? How does that compare to other countries?

Also, I appreciate that this is just the internet, but if you want the more sceptical members of the audience to believe you it might be worthwhile putting some references to your sources for the following two comments:

Gold price - economy is going stronger?

Oil price - the US is trying to limit Russia's cash flow?

oil price is probably due to slowing down world economy and the saudi's trying to break the other oil producing countries.

Marton did ask "Who knew?" so I thought to provide an anecdote as an answer, i.e. the 2000 metric tons.
Now I'm not supposing that every single Chinese (there's approx. 1,400,000,000 of them) bought gold in 2013 but let's say the average purchase was 1 kg. Using this guesstimate that means roughly 2 million individual Chinamen or women bought gold. If this wasn't merely an impulse on their part then I assume they had a compelling reason. I think that if such a large number of people in one single country do something it is significant. Then there's the Indians....

chinese people buy and give gold as part of wedding ceremonies, so there is a constant demand for it in china.

also gold as a proportion of foreign reserves is tiny in china compared to other countries and so if china were to diversify their holdings by buying gold, they'd have to buy a heck of a lot to catch up.

The Indian govt. has found that limiting gold purchasing causes a big growth in smuggling so they tread a careful path.

If Fort Knox is really half empty of gold then the law of supply and demand might start up again

An article from Forbes about gold in China here.
Mix of facts and speculation.

Or Saudi trying to frack up the US fracking
So far not reflected in Pump prices here

Quote from the Forbes article "makes China the world’s sixth largest holder of official gold reserves, after the U.S., Germany, IMF , Italy and France"

There is more gold in India but in private hands, not official.

Regarding China's central bank reserves. Since 2009 China has not declared how much gold reserves they have accumulated. Then it was 1054 tons. By now it must be at least double that but outside of China nobody really knows.

PS All my comments about 2000 tons in 2013 are gold sales to the Chinese public. For that reason it has little to do with the country's central bank reserves. I certainly don't include my 10 Vrenelis in Switzerland's reserves.

In any case there is little logic in comparing a rate of supply (tons per year) to an amount that has been amassed over time.

Someone asked for references.
This is a new one posted yesterday.
https://www.bullionstar.com/blog/koo...-demand-2199t/

Similarly...

Reuters: Top bullion consumer China works on first gold forwards, options

GoldCore Blog: India Gold Demand Surges 450% and Bank of Russia Demand At 15 Year High

(...Speaking of 'gold buying'.)

Quote from the blog "According to the Russian Central Bank: "In the past ten days we have sold about $6 billion" to support the rouble rate, Reuters reported yesterday. And yet $1.5 billion was made available to acquire gold reserves. "

Amazing that Russia is buying so much gold at this time; they must have very strong reasons?
Clearly they must be expecting the gold price to, at worst case, remain stable?