The major operators of the paper market in precious metals are using all the ammunition they have available to suppress the price of gold and silver. But they have an extremely powerful opponent in China which continues to increase the gold imports at a remarkable rate.
In 2012 China has so far imported 500 tons of gold against 375 tons for 2011.
Total Chinese production and imports for 2012 is 900 tons against 750 last year. (chart courtesy Nick Laird of chartsrus.com)
Why is India so significant to gold? As you can see below, from 2000 through 2011, the rising incomes in both China and India have been strongly correlated to the price of gold.
Caledonia Mining Corp. - Blanket Gold Mines Field &