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Griffiths continues:
“For as long as interest rates are super low, there’s no negative cost of holding gold. There is a seasonality to gold and very often it doesn’t start running until the end of February...Once we get into March, I think we can expect it to start motoring higher again.”
When asked about the strong demand coming out of Asia Griffiths stated, “I think we’re moving into a world where Chinese and Indian authorities are going to be more dominant than they were in the past, and in their culture of course gold is real money. On top of that, particularly China already has more than enough dollars, it’s finding that a problem. It doesn’t want to crack the dollar, but it doesn’t want to go long of any more because of its trading activities.
Their national reserves are probably only just over 2% in gold at the moment and they could easily move up to 10%. I think this buying power will continue and I think gold’s secular trend will go a long way higher. So far it’s been a linear trend from $250 to $1,400, and technicians always know these things end up going exponential. I mean if we haven’t gone exponential by $1,400, the final high is going to be way higher than current levels.”
Robin Griffiths is indicating that we should be looking for a staggering five-fold increase in Chinese reserves in gold. This is a monster undertaking and this confirms that Asian gold demand will be relentless well into the future. This means that China is looking to add roughly 5,000 tons of gold to their reserves, this is not good news for the gold bears.
Be sure to return for Robin Griffiths in-depth King World News interview.
Eric King
Robin Griffiths - China’s Gold Reserves to Rise From 2% to 10%
With gold and silver on the move today, King World News interviewed one of the top strategists in the world, Robin Griffiths of Cazenove Capital. Griffiths had this to say about clueless western journalist commentary on gold, “The kind of western journalists that continually write down gold, two things, they almost certainly don’t understand the Asian culture, and they were educated as strict Keynesians and he (Keynes) made the remark it was a barbarous relic.
And when they are really desperate they say well, Mr. Buffett said you have to store it and of course you don’t get a dividend out of it. The thing they are choosing to forget is you’re only going to buy it with a piece of paper, and the piece of paper is being printed and thrown from a helicopter window, and they just choose to ignore that fact.”
February 8, 2011
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