I posted a link on the Off Topic with full article that looks at gold and the Chinese connection. The following is their conclusions. This may be interesting to CUU shareholders since we do have a large gold (and silver) resource and TECK has a Chinese link.

The Conclusion…

We have been fortunate this week to uncover a few more pieces of the gold demand puzzle.

In previous Weeklies, we have established, along with many other astute market observers that physical gold is in strong demand. Further, a significant chunk of that demand is coming from Asia.

In our above discussion, we have provided additional compelling evidence that physical gold is not simply changing ownership but is being physically shipped to China.

In last week’s commentary, we wrote about tectonic shifts were taking place in the gold market and how they would render its landscape permanently altered.

This week’s discussion provides powerful insight into a core aspect of this new gold market landscape.

The new reality, which it would behoove gold market participants to wrap their collective heads around, is that China is the world’s biggest producer and consumer of gold. Therefore, they will be the primary movers and shakers in the gold market going forward.

Highlighting this point, the Shanghai Gold Exchange has recently commented that its goal is to be the largest gold exchange in the world. Given the physical activity discussed above, this is not an idle boast.

The mainstream press ignores or clouds the new realities unfolding in the gold market, but sober-minded investors can’t afford to.

In our view, these gold market dynamics, along with others, can only lead to a favorable outcome for the gold price in the medium to long-term. Also, if the last month and a half is any indicator of what’s to come, gold is likely in for a strong 2nd half performance! Hope springs eternal.