GOLD ETERNAL

This is the second piece about gold I 've done recently. That's because I love gold. I love its beauty, I love the sheen of it, the way it glows magically in a softly lit room or against a dark background.  But I also love it because it's the only thing in the shifting, unstable world of fianance that is real. In the end, when trouble really hits and all that currency paper and coinage is valueless, gold will still be there, glowing amid the revolutions and the war and the flames. Gold is eternal money.

 Gold is what it is. It doesn't represent anything but itself.  It's not made by man. And it can't be destroyed by man. It doesn' t react with water. It doesn't corrode. It can be melted but that doesn't change its value. It's still gold, pure intrinsic wealth.

That's why the really rich don't bother trading it.  They keep it, and when they die they pass it on to their children.  It's the ultimate insurance, the ultimate security.

The stock market may collapse, your great houses fall about your ears,  the country you're in disintegrate, all you may be left with is your gold. And that is all you need. Because gold is eternal money.

The last post on gold discussed which nations hold the most gold.  At No 1 was America.  The US keeps its stock of gold at Fort Knox.  And below is one of the most awesome photos I've seen.  It was taken at Fort Knox and it shows a room lined from top to bottom with solid gold bars.   Imagine standing in the middle of that room. Breathtaking.  And I wonder how many rooms there are like that.

Photo courtesy of solarnavigator.net - I site I came upon accidentally, and I thank the site for a really great photo.

This post takes another look at gold economically, this time from the point of view of what the Telegraph calls 'gold gobblers' - those nation who have the most passion for acquiring gold.  Wise nations.

India

India had the highest consumer demand for gold in 2010. The country bought 963.1 tonnes of the precious metal, valued at $38.1bn (£23.4bn).
The main driver behind Indian demand is jewellery, with a 47pc increase in Q4 2010 demand compared with Q4 2009. This was boosted by Diwali celebrations, the biggest gold consumption period in India.

China and Greater China
Greater China lies in second place in terms of gold demand, although when combined with demand from the mainland, it easily sits in top spot.
Consumer demand was valued at $24bn for 2010, with demand on the mainland (ranked in third place) valued at $23bn last year

USA
US demand for gold jewellery has been slowing over the past 10 years, while investment demand has risen. Demand stood at 233.3 tonnes in 2010, with a value of $9.4bn.

Germany
European gold consumers were mostly driven by concerns over sovereign debt in 2010. and fled to gold for safety. Germany have even started offering gold in vending machines in Berlin's first 'Gold To Go' gold bar dispenser at Galeries Lafayette, where customers can buy gold bars weighing between one and 250 grams.
German demand stood at 126.9 tonnes in 2010, with a value of $5.04bn.

Turkey
Following several quarters of decline in the Turkish jewellery market, Q4 demand in 2010 was up 7pc compared with Q4 2009. Total demand in 2010 was 114.6 tonnes, valued at $4.5bn.
Consumers in Turkey are now focusing more on buying 22 carat gold, rather than 14 carat, in recognition of gold's investment properties.

Switzerland
Switzerland, which is one of Europe's largest gold investment markets, saw total gold demand of 91.7 tonnes in 2010, valued at $3.6bn.

Vietnam
While gold jewellery demand outside India and China lagged behind in 2010, Vietnamese consumer demand remained robust.
Total demand reached 81.4 tonnes in 2010, with a value of $3.2bn.

UAE
The UAE experienced a 6pc decline in gold jewellery demand in 2010. However, gold demand for investment rose 37pc.
Total demand stood at 72 tonnes in 2010, representing a value of $2.8bn

I never agreed diamonds were a girl's best friend.  Diamonds can be destroyed, throw one in the fire and it burns down into the carbon it basically is.  You can't do that with gold. Gold is forever.