This is the number of tons China imported in 2013. It is equivalent to a year of world production. Why are they buying all of this gold while Westerners are calling this a barbaric relic of the past? As the price for a cup of coffee at IHOP moves steadily towards $3, and a chicken-fried steak at the local diner exceeds $10, I must conclude the Chinese have figured it out.
Americans are worse off in terms of real production:
Yet the stock market is reaching new highs. What gives? The Federal Reserve is enriching the 1% relative to the overall population. At the same time, the Affordable Healthcare Act will begin extracting more wealth from the middle class in the coming 24 months. How much longer can the illusion continue? The politicians hope to make it through the 2014 election cycle.
Japan’s aging population is worse than ours and their politicians have begun printing excessive amounts of fiat currency to offset the lack of overall domestic production. Germany is still waiting for most of its gold the NY Fed is holding. Thailand is trying to oust its current leaders. If you owned gold and/or silver this year, you felt like you were left behind in your return on investment. However, I view these metals as insurance against man’s attempt to create an illusion of well-being. When reality finally sets in, the populace will flee the instruments of mass destruction and head back to sound money. 2014 expects to be an interesting and increasingly volatile year. Hopefully you will not be added to the 47 million Americans now on food stamps to make ends meet. Another cup of coffee, anyone… while it is still affordable?