I renewed my subscription today. I still feel that is fiat well spent.

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MUMBAI, Aug 30 (Reuters) - India’s demand for gold in 2007 is likely to jump by 50 percent, from 2006, to record levels as lower prices lift buying interest, a senior official of the World Gold Council said on Thursday.

If realised, Indian gold demand would exceed 1,000 tonnes for the first time…

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This buying alone will account for 40% of new mine supply, from just ONE country, albeit the most important one. That is VERY bad news for The Gold Cartel.

On that score we keep hearing the price of gold is not moving up like it should because investors are dumping because of liquidity concerns. Not so at all when it comes to the physical market:

Aug 31 (Reuters) - As fears of a credit squeeze recently roiled the commodity and financial markets, investors in precious metals ETFs showed no sign of abandoning their positions.

Changes in gold and silver ETF holdings are closely watched by market participants because sharp inflows in gold ETFs could be a bullish signal as it shows longer-term retail and institutional investors are entering the market.

ETFs are listed on the stock exchanges and offer investors exposure in the underlying commodity — gold — without taking physical delivery. Sponsors of such funds buy a matching amount of the commodity from the market to keep in bank vaults…

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Yes, The Gold Cartel has specs dumping their derivatives positions, but in the end these guys must come up with enough physical gold supply to meet growing demand. SO, we are gearing up to a time, SOON, when spec buying along with this physical demand, will overpower the price managers. ”

The theme of tonight’s Midas is that a $50 up day for gold is comming.