Greece

If this is Greece, what lies beneath? WYSINWYG. The one piece of ice that’s been drifting around very closely to this beast is Turkey. They should have included it in the Euro zone when things were good. Now, I doubt if the Turks will ever swim close to this thing. Cold Turkey, really. Incidentally, which is the country with the highest per capita holdings of gold? China? India? Greece? Its Turkey. China & India’s consumption may be high but Turkey’s growth in consumption is staggering – according to the World Gold Council, demand rose by 32.6% in 2011 compared to the previous year. Both their government as well as the people there are worried about the future. So while many emerging counties’ central banks are loading on gold as a hedge against inflation that the US Fed exports out to them, India seems to be a little bit too big to do that. Lots of money will be needed to buy more and more of the expensive gold and that would mean printing INR that’s getting cheaper in value (and therefore more costly to print) by the day. Considering that inflation will not be allowed to rise up any more than what it has in the past given we are soon going to be entering into the election year it looks like a catch 22 to me. Is my logic correct?

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About Kaushal
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