China Slowdown Pressuring Gold, Commodity Prices

With a strong possibility there may be a slowdown in economic growth in China, prices for gold and other commodities have been under pressure because of slowing demand.

In the FOMC meeting today, there was no signal one way or the other that there will be another round of quantitative easing, also pressuring gold prices, which were down to $1,686.30 an ounce, falling $13.50.

Even with unsubstantiated concerns over the Chinese economy, silver, copper and oil prices all rose on Tuesday.

Some market analysts are considering no news is good news from the FOMC, as they are taking it, or at least, spinning it that the U.S. economy is on its way to recovery.

It's not of course, but the media is so in bed with Obama it's hard to get reliable and honest economic data and analysis at this time.

Much of the recent concerns over China came from the release of data showing China now has the largest trade deficit in a minimum of 22 years.

Retail sales were also down for January and February 2012, and factory production gained the least since 2009. All below analysts' expectations.

The jury is still out on the Chinese economy, and the American economy continues to struggle, and the economic data, at best, is dubious, as enormous debt, uncontrolled government spending, and fudged unemployment numbers are being spun to make it look like we're on the way to recovery, when the economy continues to be in shambles.

Gold prices will continue their upwards run for some time, although we'll continue to see these price fluctuations as it rises.

Jim Rogers on Gold and Economy

In an interview with India's Economic Times, billionaire commodity and investing expert Jim Rogers talked the economy as it relates to the upcoming elections in 2012, as well as his general view on gold and other commodities.

As for the economy, Rogers sees the election cycle as a disaster, with Obama doing everything he can to create the appearance of improvement, as he has the Federal Reserve print out huge sums of money.

Rogers said, "You have the American government spending staggering amounts of money right now, printing a lot of money and getting ready for the election."

"You have to remember the election in America in November...they do their best to get the economy juiced up so they can win the election."

The problem is the hangover from printing all that money, which inevitable results in a things getting worse rather than better.

Rogers noted that the solution is to allow the economy to cleanse itself via bankruptcies, i.e., allow businesses and financial institutions to fail. From there, the healthier banks and businesses will emerge, making the economy stronger. But the out of control government won't allow that to happen, making the near and distant future of great concern.

Concerning gold, Rogers said, "I own gold and I am not selling gold by any set of imagination." Rogers also said he would prefer the yellow metal would consolidate more in 2012. That way it would position it better for its continual upward price movement.

Jim Rogers Talks Worsening U.S. Economy

If you want to get a solid understanding of some of the macro-economic realities affecting, or about to affect all of us, you can't do much better than billionaire and commodities expert Jim Rogers.

In this video he talks about the fact the financial crisis in the U.S. is worsening. Other topics are oil prices, the economy, increasing debt and China's growth.