I couldn't find the article to respond to it so am just posting this as a new message. This in today from the writer for the Miles Franklin gold site that addresses it...and addresses it well in my humble opinion. Here goes.......

"Today I received an email from a friend that can be found here at the following link:

Gold Demand: Not What You Think It was published on the Seeking Alpha site.

The author, Mr. Murdoch, took the position that gold production is rising and demand is slowing and that there is a surplus of gold now and has been for a few quarters and he is not a buyer until the imbalance corrects. I take exception to this article and here is my reply to his email:

Dear Doctor J.

Thanks for the article. I don't agree, but that's nothing new. Here are my comments --

Murdoch is looking in the rear view mirror, not forward. One year from now gold will exceed by a substantial amount his $1500 figure. He makes two big assumptive errors: He does not understand the nature or reality of the Cartel manipulation (via Comex contracts and naked shorting) scheme. Gold is not trading in a free market (what is these days) and everything that I read leads to the conclusion that production on a global scale is DOWN, not UP. Also, demand is much higher than he gives credit for with China, India and several other central banks, plus several large hedge funds, George Soros and other large investors now moving into PHYSICAL gold. There are reportedly large shortages in London and the longs are being offered huge premiums to not take delivery. Also, he is not factoring in the enormous effect of a dollar on the edge of a cliff. I expect the dollar to be around 72 a year from now, maybe lower. That fact alone will direct billions and billions into gold as an island of safety since the euro no longer is an option. Also, he relies on WGC numbers which are and always have been in error, and always to the negative. They, as an organization, are bought and paid for by the big bullion banks. For years, they promoted gold as jewelry when in fact its main area of growth is as an investment. They can't possibly be that dense. They have an agenda and it favors discouraging investors to buy gold. I think that they should be disbanded!

The real gold story is two-fold: A falling dollar is in our future - and robust investment demand from big money sources such as central banks and cash rich hedge funds will continue to jump on the band wagon. It is because of articles like this that so many people will not benefit from the safety of owning gold and will be swallowed up when the dollar plunges. Gold is NOT an investment and it is NOT about profit, it is now about survival. Too many people are playing a dangerous game of musical chairs when it comes to gold and their dollar-based wealth. I'm safely tucked away in the corner of the room, sitting on my gold plated chair, watching the foolishness and care not one wit about those who refuse to get it. It's their problem and they will find out soon enough. Time is now very short and by the time they get it and decide it's time to get it (physical gold) there will be none to get and they won't get it.

For me and those like thinking people, our world will NOT come tumbling down. For those who follow CNBC and believe articles like the one you sent to me, well in life you most often get what you deserve. I will take my chances and be short dollars and long gold. This is not the time to think short-term. You either understand the big picture and see the forest from the trees or you don't.

In spite of the article you sent to me, the physical market is about to overwhelm the "paper" crooks on Wall Street. "