News flash on gold

We interrupt our series on how to invest as an individual for this news from The Wall Street Cheat Sheet. As usual, we advise you to get a second and third source for this news. We’ll look, too.

However, in the piece by Eric McWhinnie, “China Cracks Down on Gold Exchanges,” we read that the Chinese regulators are banning all gold exchanges in China except for two in Shanghai.

Reuters also had a note in the move, “China clamps down on gold trading frenzy,” so we only need one more independent (not quoting the other guys) report to believe it. Actually, the market seems to believe it already, but still…

And the Chinese are probably right. Frenzy doesn’t begin to explain what was going on there. We think the next big bubble bomb will be China, starting with their real estate boom. Observers on the ground have been watching this and warning their clients about it for at least a year. Funny how long it takes for most “investors” to wake up.

When they do, Katie bar the door!

Investment lesson: use your head, be objective, triangulate.


About InvestingforOne

I've been investing in various assets by myself using a discount broker for many years. Over that time, I've developed some theories that others might find useful. Plus, there is more to investing than money. Time, talent, work, friends, family all go into developing a good and satisfactory strategy.
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