This makes a lot of sense. Point #1 and #2 is a summary of the book Hot Commodities by Jim Rogers, and that entire book makes sense. Point #3 makes sense too, and I wonder if you can give us some examples.

What makes you think that China is backing their currency with gold? If they are, could they be responsible for the rise in gold, as they are buying lots of it? Do we know who is buying gold? Is that listed anywhere?

Do you have any explanation for gold’s sudden rise? Do you expect profit taking to give us some good buying dips?

If you wish, you can post the answers on the What’s Up with gold post.