“Monday’s plunge has excited the Chinese market,” said the perky anchor on China’s English-language CCTV News.
As we write, gold sits about where it did 24 hours ago, at $1,386. And CCTV devoted the first 10 minutes of its Biz Asia program this morning to gold.
There was a report from one of the country’s major gold bazaars. “On Saturday,” said the manager, “there were so many customers it was difficult to get into the store.”
“Chinese buyers’ faith in the yellow metal remains strong,” said a sound bite with the chief economist at one of the country’s “Big Four” banks. That’s the “love trade” in action — the term coined by Vancouver stalwart Frank Holmes to describe Asians’ cultural affinity for gold.
An expert interviewed in the studio said if Cyprus is forced to sell gold to meet the terms of its bailouts, other sickly eurozone countries might have to do the same. “If Italy is asked to sell gold,” he said, “that would be a large amount.”
Read More at The Daily Reckoning . By Dave Gonigam.