Gold Bull in a China Shop!
After reading Jakila's latest blog I decided to do a bit of research and came across this bit of news:
China Investors May Put Cash Into Gold ETFs Through Lion Fund
The reason given for this new ETF is the increased demand for gold in China during the first half of 2010. This leads me to believe that gold demand in China will continue to increase in the short term, which should continue to drive up gold miners' stock.
But how long will it last? Like a sugar high, this is likely to cause gold prices to come crashing down at some point. The question is not if, but when will that happen? Maybe a year from now? In the meantime I would be hesitant to short the stock of gold miners.