There’s been lots of gold news already this morning, not the least of which was the $70 plunge in price that the mainstream media says is due to profit taking, a rotation back into equities, and the looming margin rate hike by the Shanghai metals exchange that many think will be followed by a similar move at CME Group here in the U.S.

Of course, the Swiss pegging their currency to the euro (or, more properly, putting a limit on how high it will be allowed to rise versus the euro by printing up however much local currency is necessary to buy euros) has complicated matters for investors as one reliable safe have has now been removed from the market.

You’d think this might buoy the gold price, but apparently not.

The Chinese are probably eying the the developing correction as are Indian festival buyers, confident that buying opportunities have been short and shallow, that is, since the world’s paper money began what, increasingly, appears to be a death spiral a few years ago.

But, the most interesting gold news today comes from Kazakhstan, where, according to this Reuters report via Mineweb, the government just announced it will buy all domestic gold production for at least the next three or four years.

Kazakhstan’s central bank said on Wednesday it would be buying up the Central Asian nation’s entire gold bullion output until at least 2014-15 to ease its exposure to the sagging dollar.

The bank decided last month that it would start buying up the entire gold bullion output from domestic producers on Jan. 1, 2012 to augment its gold reserves.

“In the next two or three years we will certainly be buying up the entire (gold output) volume,” National Bank Governor Grigory Marchenko told a news conference.

…

The gold assets of Kazakhstan’s central bank have grown by 29.5 percent since the end of last year to stand at $4.0 billion as of August 31, amounting to 11.1 percent of the country’s net gold and foreign currency reserves.

Kazakhstan, Central Asia’s largest economy and oil producer, produced 21.4 tonnes of gold, including 9.7 tonnes of refined gold, in January-July of this year. It plans to boost gold output to 33 tonnes this year from 20 tonnes in 2010.

Given the dim prospects for policymakers to extricate the world from its current financial difficulties, many of which are rooted in the excess creation of money and credit for about the last 30 years, it’s hard to view the current correction in the gold price as anything other than a buying opportunity, even at these currently loft prices.