I read this recently in a gold newsletter:

“More importantly, if I own gold, a peasant buying gold in China can directly affect the value of my holdings through the increase in demand when he buys it in his local village since we are both holding the same thing!”

Well, these are sweet thought to gold bugs, but the vast majority of peasants and rural workers in China can’t afford anything beyond subsistence. Gold may benefit from middle and upper class savings. But I am not sure Indian demand can keep up with the prices.