Wednesday, November 4, 2009
India buys 200 tonnes of gold from the IMF. Or India sells dollars worth 200 tonnes of gold. But why does India get this and not China? India has potential inflation problems specifically hitting food prices, not assets, and a culture of physical gold holding. Food inflation is a killer for currency confidence, which is why I think Merv is pumping assets instead. Browns gold sale would be worth today 8 billion sterling. He got 2 billion. I still think gold collapses next year along with everything else, but if everybody gets gold fever then, I suppose not.