Heterodox
I would add to government accumulation the likelihood that as incomes rise in the East there will also be increased demand from households. There already is. In the West, physical gold is mostly bling, with much of the saving in gold held largely in derivates as financial saving. And, as Jesse observes, the "paper gold" — "digital gold" really — is an issue owing to hypothecation and re-hypothecation. In the East physical gold doubles as ornament and real saving. In addition, in...
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