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.