How exactly is it possible that China acquired 10,000 metric tons of Gold since 2011?






Submitted by Chris Hamilton:

(graph courtesy of Money Map Press)

(graph courtesy of Money Map Press)

Since August ’11 to August of ’14, China has decreased its holdings of US Treasury debt by <-$9> Billion (according to the most recent TIC data)…while continuing to run record trade surpluses with the US.  This means China will have (by year end 2014) taken in $951 Billion in shiny, new, digital dollars and simultaneously sold or rolled off $9 Billion in US Treasury holdings…so China will have had to find a home for $960 Billion new dollars.

From ’00 to ’11, China had (on average) recycled 50% of its trade surplus dollar reserves into Treasury’s.  However, as noted above, China has been a net seller since August ’11…why is this date important?  It was the month after the debt ceiling fiasco…and the date when China’s purported gold purchase binge began.  It’s was also August ’11 that gold hit its peak price and has fallen since.  I don’t think these happenings are a coincidence.

Since we know China didn’t buy Treasury’s over this period, perhaps we should speculate what those new dollars would do if focused on gold purchases?!?  If China rotated the 50% of surplus dollars it had been utilizing to buy Treasury’s and instead bought Gold…at an average of say $1500 an ounce since Aug ’11…that would buy China exactly 10,000*** tons of gold by year end 2014.  Hmmm…Implications abound.


***Math check…$960,000,000,000 * 0.50% = $480,000,000,000 / $1500 per oz. gold = 320,000,000 million oz. / 32,000 oz. per ton = 10,000 tons of Gold.

Of course I can’t prove that China did purchase any amount of gold.  The Chinese authorities haven’t made any updates since 2009 when they last made public a 600 ton increase (to their then official holdings of 454 tons) to the current official Chinese gold reserve of 1054.1 tons.  What I can say is Russia, which likewise has a large dollar trade surplus and likewise to China has been reducing its Treasury exposure since August of 2011…has been busily and openly adding to its gold reserves, now up to 1153.3 tons.  Then again, I (nor the US government?) can’t prove the US truly has 8133.5 tons.  Or the Germans 3384.2 tons or Italians 2451.8 tons.  Still waiting on those open and transparent audits.

All I can say is the above math regarding China’s dollar hoard would nicely support what is visible in the chart below and also support those that claim Chinese gold buying and gold reserves are far larger than advertised.


AND — A quick reminder of who did buy US Treasury debt from August of ’11 til now…sort of a who’s who of banking and digital dollars…noticeably missing are those who have actual dollar reserves in need of recycling!!!


When even a liberal arts major can do the math…this Ponzi scheme must be wearing pretty thin!!!

As a follow up – I was asked if the large Treasury holdings increase in Belgium could represent Chinese purchasing?  Here’s my two cents:

No way to really know – but China’s usual outlets for secondary Treasury purchases were historically through Hong Kong or the UK and potentially also via Canada…I didn’t get into this in the article but it was the UK that from June to July of 2011 dumped $208 B in Treasury’s and by October of ’11 had dumped $240 B of the UK’s original $347 B (70% reduction in holdings).  Canada likewise dumped $49 B (52%) from June to July of ‘11.  The UK now has recouped some to $170 B but still only half of what it owned in June of ’11…Canada likewise has recovered some to $65 B.  HK has been steady and slightly growing the whole while.  China’s official holdings peaked in July of ’11 @ $1315 B and suddenly also declined to $1150 B by year end 2011.

It’s a pretty safe bet this was China or its agents selling what amounted to $435 B or 35% of China’s official Treasury holdings…and it was Belgium who held $34 B in June of ’11 that suddenly began its moonshot to its current holding of $360 B…an addition of $330 B.  However, many also want to attribute Belgium’s rise to Russia whose Treasury holdings peaked in 2010 @ $176 B in Treasury’s and have fallen to their current holding of $118 B ($58 B reduction…or a 33% reduction).

Was there a connection between the $435 B sold between China / Canada / UK and the $324 B subsequently purchased in Belgium?  Seems a fair bet.  But even more importantly, that would only represent a repositioning of China’s Treasury holdings and would still indicate China has been nothing but a net seller since ’11 (the other option is China actually did sell and has an additional $400+ billion on top of the $960 B in trade surplus all in need of PM’s, stocks, and/or real estate).  The premise that all those dollars in trade surplus from ’11 till now need go somewhere still seems valid.

The Last Coin in the Silver Shield Banksters Collection:
End of the Line– On a Long Enough Timeline, the Survival Rate Drops to Zero!




    • Ms. Hudes must have her numbers rong since 170,000 tons is roughly equivalent to estimates of all of the gold that has ever been mined in the history of man and surely the US does not own all of the gold ever mined. On the other hand, just maybe the estimates of total gold mined in the history of the planet are rong! Things that make you say “Hmmm”!

    • bob, Hudes s a crackpot and raving lunatic. You said you sold all your remaining metals today, so why would you post this propaganda on the board? Pretty sure I know the answer to that question already…

  1. Analysts love to talk about “China”.

    But is all the metal being produced and imported there for the People’s Central Bank?
    The Party is actively promoting stacking to its 1.4 billion citizen. If 10% listen and 1% acts as advised…not much left to be put in the central vaults?
    So much wealth in individuals’ deep reserves, off-grid, could be a great catalyst for economic growth after the reset.

    • China can just confiscate all it’s citizen’s gold later and issue paper for it. It’s happened before and will again. Silver is a better bet for private citizens as they will never have enough vault space to store it all ….

    • China is eliminating corruption not encouraging it. I haven’t seen much gold accumulation by citizens. A lot of savings is put back into small businesses or invested in children. You can’t imagine the 6-7 day/wk pace the kids are on. And it isn’t filled with soccer or anything like that.

      Besides gold, China is also spending a lot of money on infrastructure expansion.

    • @ranger  I just listened to Von Greyerz.  His assessments are spot on.    Von Greyerz just reported that Paypal just froze the contribution accounts of the Swiss Gold Initiatives, the advocacy group supporting return and accounting of Swiss gold.  TPTB are working hard to defeat this referendum by any means.

  2. @XC Skater  Just a wild guess here. China thinks long term  They’ve been acumulating heavily for at least 10 yrs   They have 1 trillion plus in US dollar reserves.  WIthout disrupting the price by demanding all the gold in the world  lets say there’s 50,000 tons left, gold is selling for around $1,200 an ounce, $38,000,000 a ton that does not hit $2.0 trillion  China’s total reserves? $3 trillion

    At $1,200 an ounce this is cheap phyzz.  They will buy until there is no more gold and then where are we going to be?   170,000 tons in Hawaii?  I think that is moot at this time.

  3. Me thinks 10ooo tons is incorrect.Based on my readings from various reliable sources  that 10k number is in all likelihood double if not more.If the chinese in a collective sense have been importing approximately 1000 tons  month then the above estimation is probably low.

    If someone out there can answer this question it would be appreciated.When all the Gold has migrated East and the dollar subsequently goes into freefall how will the Bankster Scum retain power ? Usa fiat will be garbage ..they will have no gold .They will do longer be able to print so called “money out of thin air”What do these deviants do then.While Gold and Silver has been hammered have they secretly hoarded it? If they have no gold and silver and the us currency is worth dick by what means will they derive their financial power from? If anyone can offer some sort of explanation it would be appreciate.While in the short term suppression works by supporting the usd but in the long run it means financial decapitation .

  4. @inlikeflynn   about the only dots I can connect are in this order and just a best guess

    When china accumulates enough gold to back their yuan to maybe 10-20% in gold they can price the gold at a level they chose.   they repudiate the dollar system by taking out the petro dollar with Saudi help.  Saudis say they are abandoning the petrodollar and pricing in any currency with a favoritism to the gold backed one—Chinese yuan.  China dumps what remains of their USD reserves—no one really knows how much they hold but Russia dumped a couple hundred billion from their sov wealth fund.

    If the dollar no long can force price discovery through their criminal enterprises that smash gold price, then China holds the high ground.  The stripping  of USD reserve status will take time but when it’s found that the US has nearly no gold, all leased or sent east, the UK is drained of gold, leased or sent East and the Germans, italians and Swiss disclose they not only have gold but have yuan exchanges based on some sort of hybrid gold back china currency—what was your question?

    yeah  I think you are on the money   The US banksters will be depleted of any gold. The wealthiest people are accumulating gold by the kilo tons on their own. When the die is cast and China knows that the gold depleted west is ready to fall—Sun Tsu says let the enemy defeat itself—then give it a swift kick in the behind, that is probably the day when gold will catch a break—silver too.

    Anything outside that is beyond my pay scale.  Maybe a black swan will foce gold higher like it did in the 1980 period.  But that’s a hyperinflation story and I think we have a while before that might happen—even years.  SHTF scenarios are complete ouliers and I plan for that event with a notion it could happen any month upcoming

  5. PS  rabbit hole questions give me dain bramage.   SHTF scenarios seem to be coming into being as we speak.   Gold just hit the $1,100 handle.  Silver at the $16 handle seems almost baked in the cake

    The SHTF situations can easily create a fear factor liquidation event, destroy pricing mechanisms and generally screw things up so bad that gold and silver will need to be buried deeply in the ground while we work off FIAT because that’s all the moron class understand

    Once the dust settles and gold and silver are seen as a real currency then the prices will be unaccountably high and the only thing people will take. The Continentals won’t be worth a—-Continental

    The SHTF scenarios may be quite quiet, like that slo mo lava flow in Hawaii. It takes weeks to arrive but burns the crap out of everything it touches
    Do you know how to avoid a lava stream moving at 10 yards per day. Step aside. In other words, get the heck out of harm’s way. Step aside!!!

    The equities are pumped by the PPT and ESF.  Fed prints like maniacs, free stuff flows like crap out the sewer, fear porn flooding the airwaves and all kinds of other gollum  BS pumping out like a Texas tea gusher.  Everyone runs around like chickens with their heads cut off yet they cannot figure out, for the life of them, why they are losing their minds.

    We just sit back, watch the movie, bunker in and close the doors.


    Can you button up your house for 15-30 days and stay in place like some prepper Ebola quarantine martial law wanna be. :-).   We’ve set up a hour class next weekend to discuss the specifics of how to survive in place with infection controls, first aid, decontamination processes and water purification drills. 4-6 hours of intensive training from 2 of the best trainers in the business.

    I plan to take my Prepper Jack suit and  other supplies as show and tell.

    • ” Can you button up your house for 15-30 days and stay in place like some prepper Ebola quarantine martial law wanna be. :-).  ”


      30 days ?  Heck, we could go years without opening the gate if need be.

  6. @agx11k

    thanks for your thoughts

    Yeah I just cant believe these crafty deviants would leave themselves dry when things reach critical mass.They seldom end up the loser..they we leave the average Joe holding the proverbial bag of $hit to deal with.

    • @just observing says he can button up for years.  That sounds like he has a nice cell at the Pelican Bay Super Max  Or a seat at the Denver Oligarch Rescue Facility  D.O.R.F.

  7. a guru said that the chumps at COMEX, LBMA and like bullion banks would rather commit suicide than fail to deliver. I guess we will see more suicides in short order.  I would guess that the penalties for breaking the bank rules are pretty severe  Leaving us with a turd sandwich is just the way they operate

    Another guru opined that to these uber elites and  overlords, we are nothing, not even ants to these people.  They give no more regard to us than we would to dust we sweep from  a table

    With that cheery note I gotta go help my homie with our gasoline dump

  8. […], gold is going below $1000 next year and silver below $8. […] look at […] historical PM charts over the years. It is very easy to identify major bull and bear markets. […].

    • Kid, you can’t double the money supply without doubling the value (in fiat) of bullion.  It just works that way. That fiat money will never be reabsorbed but you can bet there will be more created. While I agree there can be short-long term variations due to what people are chasing at the time for yield….

      An ounce will still be worth an ounce, no matter what paper currency you quote it in.

    • Lion boy, How much of what you have do you want to sell right now?  I’ll buy it.

      Go back to your handlers and ask them for more smart alecky stuff.  Go away…

  9. I wish I was around here several years ago […]. I am currently writing a book […] and one of my chapters is dedicated to the PM investor. My book consists of real stories by real people […].

    Sitting on large amounts of gold and silver is not a good place to be if you are expecting it to either maintain any wealth or be a source of wealth over the next 50 years. […].

    • I can accept that Au and Ag will fall further in the short term  — in fact, I welcome it. I like buying things on sale.

      But for you to say this:

      “Sitting on large amounts of gold and silver is not a good place to be if you are expecting it to either maintain any wealth or be a source of wealth over the next 50 years.”

      Well … You’ve officially jumped the shark, Lyin’ Kid





    • Since you’re apparently in the Deflationary camp…

      1) Are you among those who believe ONLY in the fiat currency being horded for now, because more people will be paying off debts, therefore fewer will have fiat to spend and it shall be more valuable?

      2) Do you see any possibility that PM’s will even spike upward, even with all the demand for them? Mind you, I’m aware of the numbers the Industry gives out, yet it’s damned near impossible for me to get even a simple 100 Oz Johnson Matthey through my favorite supplier, and there are significant reductions in phyzz being reported around the globe. Someone’s LYING!

      3) Do you see any possibility that an inflationary-then-deflationary outcome is possible? If yes, do you expect it to be brief?

      4) Do you suspect China is getting a really raw deal from all their PM purchases? If so, what do you suspect will be THE new reference to back this paper script the Fed prints out at will? Bear in mind my thinking is that the Treasury has little or no gold or silver to back up their chutzpah.

      […] Gracias!

    • Hey lionkid, do you still not get it????????? The lower it goes, the better for us. Oh wait, I see…… You’d rather have paper. I like paper, makes easy to light my camp fires. Do you have any silver to sell on the cheap? If not, what are you doing here. 🙂

  10. I find it reprehensible that the doc would allow this kind of behavior and antagonistic remarks designed to upset all the people here who are honest and trying to protect ourselves from government fraud. We shouldn’t have to listen to an obvious shill whose only purpose is to disrupt honest discussion.

    And as someone who has made real investments with the doc, I think he aught to be respectful to people such as I.



  11. Anyway, in the many discussions we all have with our like minded friends + alt media info ( filtered ), China seems to be the best of the worst senarios for global governance.

    Sort of like a social experiment, if you will, that now has the ” green light ” for global roll+out.

    When all the required ducks line up, then the corp/fasist controllers implement thier global governance plan.

    New currency, new ideology, new policy, same old handlers.

    potentially not good for us useless eaters.

  12. “***Math check…$960,000,000,000 * 0.50% = $480,000,000,000 / $1500 per oz. gold = 320,000,000 million oz. / 32,000 oz. per ton = 10,000 tons of Gold.”


    I did a double take on this one.  Whenever anyone says “do the math” or “check the math”, I do.  In this case the notation is not in agreement with the arithmetic.  The author mentions “0.50%” and then shows a number that is 50%, not 0.5%.  Yes, I am being picky but then math IS like that.  😉



  13. Again.

    If China as a whole accumulates X amount.
    Which part goes to the central bank, which to the corporate banking sector, and which to stackers?
    Over a billion gold loving, hard-working, family-minded citizen. We’ve seen the pictures of them crowding the square outside a gold shop trying to get in on the action. Yes, confiscation can be attempted. But what if it’s more important for Chinese leaders not to hav the gold itself, but to have Chinese citizen own it? A lot of stored wealth that will one day flow back into the economy when it needs it more than today.

    30,000mt flowing into China does NOT equal additional central bank reserves of that magnitude. The Chinese people need to get their gold from SOMEWHERE. And that somewhere is being counted in any of the figures fed to us by analysts.

    • I have spent a lot of time in NE China the last couple of years. Even visit gold merchants to get price quotes. I have never seen a gold que. I don’t doubt the photos but think they are regional. Chinese are follow the leader type so maybe only regions with history of gold demand develop those ques.

      No way Chinese gold gets confiscated. China wants wealth and stability. That’s why government encourages gold. Even PSA how to purchase and store safely. Gold bars for sale in all major malls and banks. 5-6% above COMEX. About the only thing not negotiated in China. The seller makes a phone call and your price is updated. No wiggle room. Most things have 20-50% negotiating room.

      Chinese people still admire their perspective of USA. I think they are just a little out of date,  not their fault. They also admire their leader and Putin. I think only neutral at best regarding Obama. Plus is perceived environment policy,   minus is relative to Putin, Ukraine and Iraq.

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