Australian perspective on gold

http://www.moneymorning.com.au/20100329/china-buys-gold.html

It's instructive to roam outside the US to get a worldwide perspective on asset values. Australia's central bank just raised their interest rate for the fifth time in six months, in attempt to dampen inflation as their economy recovers. Nice problem to have, huh?

The Chinese are now the world's largest producer of gold, and the Chinese government is gobbling up available output--domestically and offshore, either via direct purchase or through investments in mining companies. Due to ramping up of their domestic production levels, their reserves will be kaput in 2016. Meanwhile, they are encouraging their citizens to consume gold, after repealing the ownership ban in 2001. Sure sounds like they are counting on their citizens to be the next source of gold when there's none left in the ground.