This morning we reported that inflation has dramatically lowered in China. American gold bugs have turned this low inflation data from China on its head.
The brand new interpretation is that low inflation in China is good for gold because low inflation will provide Chinese with more buying power and they will use that buying power to buy gold.
We recently published gold trading data from Shanghai showing that Chinese are selling gold and silver into the swoon.
Moreover, subscribers should be aware that the general Chinese public does not have a long cultural tradition of accumulating gold and silver like India. For the most part, buying gold by moms and pops in China is a relatively recent phenomena, whereas accumulating gold and silver is a 1000s year old tradition deeply ingrained in Indian culture.
