Dave in Denver writes:
"There's been a lot of media misdirection and appallingly invalid commentary about the relative strength of the economy and the outlook for the precious metals. I've addressed the first issue in some previous posts, most notably my recent post on housing.
"As for the latter, a blogger who goes by "Mad Max Trader" posted a widely distributed piece that suggested the bull market in gold has been fueled by China's huge buying over the past decade, that this demand will decline with the growth in China's economy, and the "air" will let out of the price of gold: LINK.
"Unfortunately, this analysis has absolutely no basis in actual fact. The truth is that China imported a record amount of gold in 2012: LINK It should be pointed out that this is gold that is "consumed" by the public and does not reflect the buying from China's Central Bank. Furthermore, on more than one occasion a Chinese Central Bank official has made the comment that China needs to diversify its massive currency reserves by increasing the percentage held in gold. The author further made no mention of ..."