China is Cornering the Market on Gold!

mali goldGold is not only the wealth preserver but it is the ACE in the sleeve, the trump card against the forces of Fiat currencies and the Central Banking Concept. The nation that possesses the most will be the one left standing when the dust of the once mighty Anglo-American Banking System finally crashes into the dustbin of history.
Over the last decade China has set up various Sovereign Wealth Funds through which they are purchasing vast stores of PM from the Bullion Banks themselves. The Main monster in this den of Dragons is the Sovereign Wealth Fund CIC ( China Investment Corp) an almost half a trillion dollar monster whose sole purpose was to consume worthless US dollars, and use them to buy valuable assets.

This past week we have heard that Swiss gold refiners’ delays have reached 5 weeks. It seems that the Chinese are heading the train off at the pass and purchasing Gold Ingots at point of manufacture paying more than what a refiner would pay.
Once again adding a quiver to the long list of strategic metals and rare earth mineral mines, China is cornering the market on Gold.


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From Steve Quayle:

For over a decade we have been hearing about the term consolidation in the PM market- that once this occurs you can see the price of Gold and Silver skyrocket. Year after year those fixated on the paper supply side of ETF’s and futures contracts have seen the PMs go up and down in a wild range of spot price. While the vast majority dedicated their energies to the fight of PM vs the Fiat of the world, there has been an operation at work so insidious- so diabolically genius- that until recently the magnitude of the operation was virtually unknown.

My first inclination of this happened when I was a lowly commodity broker facilitating the very specialized market of strategic metals for a large European firm doing business in NYC. My job was to be involved in every aspect of the deal for my direct clients. This involved dealing with the workers of the mines in Zimbabwe, to the shipping of the ORE and Ingot from South Africa to the Netherlands where the wares are refined and readied to be sold to customers the world over. During this time we started coming in contact at every level with Chinese nationals. I have seen first hand the way they come in. Not like us Westerners, they do not come to African or Developing nations with the intent to control and pilfer their resources. No they come to create mutually beneficial partnerships that work in the favor of both countries. What a revolutionary concept! This became the reason why wherever China goes in the developing world, they are more than willing to do business with her. Her business men and investors help build roads and much needed infrastructure, they bring resources to bear that help the indigenous population much need food, medicine and education. In return the host countries throw out the red carpet for China. So you really can attract more flies with honey.

The most empirical evidence for this is the staggering level of business that China does with the Middle East and North Africa. So what is America’s response to this? Well Gunboat Diplomacy of course. What China brings in aid and infrastructure, we come with hubris and machinations of regional dominance. China helps with oil discovery, we bomb, China creates opportunities for the indigenous populations, we give them sanctions. China seeks business partnerships with every nation but alliances with none. We bully and threaten and sow discord. China invests in Africa, what do we do? We militarize and destabilize with AFRICOM. In other words we are the total failures of a archaic foreign policy written by men who have no concept of how the world works today. A limited, short sighted policy of contention and containment geared for fighting soviets but obsolete in dealing with the current high speed economic-multidimensionalism. We are the old fuel swigging raucous 1960′s muscle car, in an era of high speed modern exotics. It is a game that we are losing.

This brings us to the main issue, we know that Gold is not only the wealth preserver but it is the ACE in the sleeve, the trump card against the forces of Fiat currencies and the Central Banking Concept. The nation that possesses the most will be the one left standing when the dust of the once mighty Anglo-American Banking System finally crashes into the dustbin of history. Since the devaluation of Gold and Silver in April, the effect had a few things going for it:

1. It drove enough fear into the hearts of the weak handed, causing them to dump what they have into the steel jaws of the jackals of finance.

2. It drove the short sighted, short term profiting Speculator out of the market. Leaving more for the Jackals of Finance.

3. It drove up acquisition premiums

4. Finally it created a buying spree the likes of which the world has never seen with Asia, particularly China and India being at the forefront.

Today we are at a juncture that in light of “low” spot price of PM’s there is no one selling and everyone is buying. Further putting a choke hold on the Ponzi schemes run by Goldman Sachs, JPM, the Fed and COMEX. All of the just mentioned characters either have no PM in the vaults (COMEX and NY FED) or there is not sufficient metals to meet contractual futures obligations (COMEX, JPM, GS) Which will lead these cronies to default. This mad buying has caused many sovereigns to do things that are considered irrational . China for instance in the last decade has set up various Sovereign Wealth Funds through which they are purchasing vast stores of PM from the Bullion Banks themselves. The Main monster in this den of Dragons is the Sovereign Wealth Fund CIC ( China Investment Corp) an almost half a trillion dollar monster whose sole purpose was to consume worthless US dollars, and use them to buy valuable assets.

This past week we have heard that Swiss refiners delays have reached 5 weeks. How and why? After much careful digging it seems that the Chinese are heading the train off at the pass and purchasing Gold Ingots at point of manufacture paying more than what a refiner would pay. Once again adding a quiver to the long list of strategic metals and rare earth mineral mines, China is cornering the market on Gold. People tend to forget also the vast wealth the China always had in Gold from it’s historic dynasties. This was confirmed by Steve Quayle’s top level Chinese source. It was said to Mr. Quayle that the vast wealth of Ghengis, Kubla, Hahn and Ming Dynasties have all been preserved and stored from the prying hands of Western Imperialists for hundreds of years.

Consider that China has a mysterious “Shadow Banking” cartel that is as secretive as anything in the west and one begins to see a clear picture of how this machine works in light of current economic malaise. A slowing economy, labor issues, and currency wars has not stopped the ravenous buying of Gold by the Chinese. This can only be done by the massive wealth within the Shadow Banking sector as well as the vast stores of US dollars. So kill two birds with one stone, with the Dollar buy up some Gold at the same time help bring down the US, A perfect plot if I do say so myself.

CIC moves the gold, in other words it “Launders” it. This way it shows nothing on it’s books and only very little holdings at any given time. Giving the impression of innocuous innocence. Pretty amazing for a firm that is the largest handler in the world of foreign exchange reserves. There is no better way to spend all of the worthless Federal Reserve Notes than in precious metals.

So what does that mean for us? Well once again proof emerges that American is being raped, robbed and pillaged. We have five mints in the Country and 6 or 7 major dealers. It is only a matter of time before a Chinese national with a well rehearsed West Texas accent begins to call these places and make an offer that they can’t refuse, $100 – $200 over spot? Folks we have in this country about 600,000 and 800,000 oz of gold left. In the grand scheme of things that is peanuts. In a massive emergency run in gold the supplies would last three weeks at the most!!!

Please the time to be sitting on the fence is over get off the fence or you will be impaled by your lack of taking action. Be prepared.

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Comments

  1. READ THIS HEADLINE!!!!!!!!! CHINA IS NOT CORNERING THE GOLD MARKET!!!!!! I am starting my own news letter just like these other pros. Donations for this my timely predictions are gladly accepted.  

    • Dude, you can’t even read the headline properly.
      Any way, do you have any doubts about the transfer of gold and silver to the East – China and India especially?
      Do you have any doubts that western vaults are nearly empty?
      I red your contribution to this blog for the period of last two month and I have no doubts where you came from.

    • For what its worth, maybe it is a stupid musing on my part…….I wonder if the FED (puppet masters being in charge) have a secret pact with China….to fu%k over the spot price here …so that they can buy and load up on gold, for delivery to China (and to the East).
       
      The holdings are being hare depleted at an alarming rate….the depletion is going on at an alarming rate, and if spot gets slammed again….well you know more physical gold gets drawn out.
       
      The dark forces are obligated, and are delivering . They dont care, they are convinced something better will rise from the ashe, when America is done.

  2. Hey Doc,
    Just listening to the interview with Steve Quayle and “V” the Guerrilla Economist that this extract above is from. At around the 1hour 36 minute mark V actually states that JPM Morgan has no gold left in their vaults and have sold the gold to the New York Fed. He also says that there actually is a tunnel connecting the New York Fed and JPM vaults. He says he knows this because he has a friend who actually works at the New York Fed.
     
    V also says JPM are holding less than 80000 ounces of silver but have over 34 million ounces worth of silver contracts outstanding. You really need to listen to this interview.
    http://www.blogtalkradio.com/cfp-radio/2013/06/13/the-hagmann-hagmann-report

    • 80,000 ounces is what comfortably fits on a single pallet. 160 monster boxes, if you decide to pack it so voluminously, still fits on a pallet. Why would JPM leverage that high (425 times?), this seems beyond greedy? Probably much more to it than that.

  3. I can’t say that anyone is “cornering” the gold market, although China, Russia, and India have a LOT of gold and are eagerly adding to the stacks that they already have.  In the cases of Russia and China, it is the government that holds this gold.  In India, it is the people who hold the gold.  It is interesting that China produces a lot of gold, yet never sells any on the open market outside of China.  In Russia, about 20% of their gold production is sold on the open market but 80% is not and they have a very large gold hoard.  Recent estimates of these gold hoards is in the area of 20,000 tons each for India and Russia and about half of that for China.  While China lags these other two nations, it is coming up fast in the outside lane and will likely catch up or surpass them in another 4-5 years.
     
    While most of this can be either proved or surmised, what is more difficult to pin down is why are these countries hoarding gold.  My estimate is that they see the end of the road for the US dollar / treasury bond and are diversifying into something of lasting value while the dollars and bonds that they now hold still retain some value.  This is not any kind of an asset dump, as that was crash the bond and currency markets which would be counter-productive.  What it is, though, is a steady sale of US dollar based assets and the purchase of as many real assets as possible.  Gold makes up a good chunk of these real assets but then so do profitable businesses and companies, mines, farms, ranches, fishing fleets, timberland, and anything else that is not glued down.
     
    Beyond all this lies the potential for gold-backed yuan and ruble currencies.  Just as nations are now locked in currency struggles to become cheaper and thereby stronger exporters of goods, so too will there be a race to embrace a gold backed or partially backed currency.  All it takes is for a single large economy, such as China, to declare for a gold backed currency and all other nations who can follow this lead will be forced to do so.  Refusing to have a gold-backed currency will become a terrible disadvantage in international trade.  The BRICS countries are all moving in this direction and it is certainly possible that they will only trade with other gold-backed currency countries at some point in the not too distant future.  As of this moment, they are in the mid-stage of setting all this up.  Several agreements have been reached to trade in various national currencies rather than going through the US dollar as a middle-man.  This is one of the steps in this entire process.  It will be lengthy, for sure, but also inevitable.  Creditor nations are simply tired of trading their labor for declining value payment in US dollars and / or US Treasury bonds.  While this will have severe consequences for the US and its citizens, who can blame the BRICS and other creditor nations from desiring real payment for real goods?
     
    Meanwhile, back at the ranch… the US gold hoard is totally unknown as to tonnage and purity because there has been no independent audit of it in the past 50+ years.  Considering all the shenanigans that have gone on in the Western banking system, it would not surprise any of us in the stacking community that the 8100+ tons of gold in US vaults have been frittered away over the past 20-25 years.  How much of this gold that is still left, that is not hypothecated and rehypothecated to extinction is not known and cannot be known without an independent audit of the Gov and Fed gold vaults at Ft. Knox and the NY Fed.  Considering the difficulty that the US has repatriating a mere 300 tons of gold to Germany upon their request is a terrible sign that the US gold vaults are either empty or rapidly approaching that condition.  Now that Ron Paul has retired from politics, there is no voice in the US House demanding audits of the Fed and the US gold holdings.  I do not know what Senator Rand Paul’s outlook is on this issue but would guess it to be similar to his father’s.  I hope so because this issue should be kept in the public eye and ear.  If there is no problem, then this issue should be addressed to calm the fears of those who believe that there is a problem.  If there is a problem, then US citizens, as the rightful owners of this gold, deserve to hear the truth about what happened to it, when it happened, where it went, why it went, and who was involved in its loss.
     

  4. Henasau. My headline is a parody opposite of the headline of the main article here. My point is that these type articles are a waste of time because no one knows and my headline”CHINA IS NOT HORDING GOLD” has as much credibility as the one posted based on the fact that NO ONE KNOWS. I am trying to save some poor guy from spending his family’s food money on pm’s because some bum(sorry expert) told him that our fiat system is going to collapse this summer. Cheers. Btw, I am invested in physical, but I also can afford to hang on for another 5 years if necessary. Most guys reading these blogs can’t.

    • As I said before your credibility is exposed in your past posts. So please stop pretending you want to save some would be stackers. 
      It should be clear for any Homo Sapiens the game is ower. There is just a matter of time before is to late to protect yourself. You have to leave the system, at least partiarly. How far is a matter for each individual. I can sleep well now knowing my hard earned money are outside the system. Time when this is going to happen is anybody guess but looking at the acceleration of recent events I don’t believe the criminals have much time left.
      Lastly to all stackers don’t get split up with your PMs listening to crap like this intended to put doubts in your mind.

    • Not me, I don’t hardly read any of this crap that’s posted now but one thing is for sure; I’m Still Stacking with any Fiat that I can afford to save with..

  5. Very nicely put Ed.  A synopsis that should be a SD essay in itself
    Why any country would work itself up into a lather to acquire gold is going to be specific to that country’s political leaders and central bank. 
    Each for their own reasons, the undeniable fact is the gold, and to a lesser degree silver, are the best looking ladies at the party.  Given the desire for PMs, they are popular and everyone wants to get next to them
    Unbacked FIAT spewed on a global basis is an untested system that’s trying to fly in the face and fact of every failed experiment and test of a national unback currency. Smart people in these countries and maybe not so smart folks in the smaller countries know there is something afoot and want to convert fom dollars to something in the alternate asset universe that has some durable hard asset value.
      Repatriation of gold is on everyone’s lips.  A few, like Chvez, got their gold early in the race but now pretty much everyone is in the game and they have to BUY their gold since the US is not shipping anything to satisfy repatriation claims.
    Buying using the US dollar are smart. If the dollar’s days are numbered, but NOT worthless, like the above statement of Quayle, then these other nations are using their excess stacks of FIAT to shift to the real goods before some sort of mathematical certainty that the dollar will tank.  
    If water was going into short supply, as it appears to be, this race will be even more fevered.  We see countries like China and others seeking sources of fresh water with equal vigor to buying gold. Scarcities are cropping up all across the globe and China has 1.3 billion mouths to feed and are blessed with a $3 trillion stack of reserve currencies, 65% of which is the USD.
    The race goes not to the swiftest but the firstest with the mostest  China has what it takes, as does Russia and a few others in the GREAT GOLD RACE. 

    • Thanks, AG.  I am humbled by your comments.
       
      “Why any country would work itself up into a lather to acquire gold is going to be specific to that country’s political leaders and central bank.”
       
      Indeed so.  But the fact that so many of the BRICS countries are doing this and others are following their lead looks a lot like a trend that shows us what is to come in the years ahead.  Gold is a tremendous monetary asset and these countries are not gathering it to them for no reason.  There IS a plan afoot and they are not letting us in on it… for good reasons of their own, I think.
       
      “Unbacked FIAT spewed on a global basis is an untested system that’s trying to fly in the face and fact of every failed experiment and test of a national unback currency.”
       
      Unbacked currencies, devalued currencies, and other fiat shenanigans have been around for some time now and all of them have ended badly.  There is no miracle economic / financial move that can prevent this once it starts.  All they can do is delay the onset of a financial collapse for a period of time.  But we should not underestimate the value of the time that is bought.  This is the time when people should be prepping in earnest.  Properly used, this time is critical to our future well-being and possibly even our survival.
       
      “Repatriation of gold is on everyone’s lips.  A few, like Chvez, got their gold early in the race but now pretty much everyone is in the game and they have to BUY their gold since the US is not shipping anything to satisfy repatriation claims.”
       
      Indeed it is and for good reason too.  When someone you trust refuses to hand over what they are holding for you, suspicion is created very rapidly that they do not have what they are supposed to be holding.  The Fed has not helped itself very much in this regard by issuing the weak statements about why they are not honoring repatriation requests as they should.  It is not difficult to see through their feeble excuses to the truth that they simply do not have it.
       
      “The race goes not to the swiftest but the firstest with the mostest  China has what it takes, as does Russia and a few others in the GREAT GOLD RACE.”
       
      Maybe so, but… we have HOPE & CHANGE!  Yea!   /sarc/off
       

  6. These parasite bankers are sucking host nations dry by suppressing the gold and silver. Unfortunately, if the host dies, parasites die with it as well.
    They are giving China a golden opportunity to launch a massive financial surprise attack, the scale no less than pearl harbor and 911. One day when China declares their true gold reserve, Americans will wake up in the morning and find out from the news that their US dollars worth little more than toilet papers.
    When this happens, USA can sell their nuclear warheads for gold or use trillion tons of iron to back up US dollars. Because there is no gold, or silver, or platinum left.

  7. I’m ready for some legitimate event forcasting. Bring out Lindsey Williams-where’s he been?

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