After A Long Period of Silence, Jim Willie Returns On Fire:
Are China and Russia About to Take Down the U.S. Petrodollar With a Gold-Backed Digital Currency?

China goldHas the END-GAME Begun?
Chinese finance officials and the Basel-based BIS are NEGOTIATING A GLOBAL REFORM OF ALL BILATERAL CONTRACTS.  They strive to alter US Dollar based contracts, and CHANGE THE CONTRACT TERMS TO GOLD SETTLEMENT.

China– China now officially have 1,658 tonnes of gold – GATA’s Bill Murphy discusses China’s SECRET GOLD RESERVES
– Gold manipulation more obvious than ever! 
– World Gold Council dismisses gold manipulation 
– Hedge Funds have a first ever net-short position in precious metals (since U.S. government started collecting data in 2006) 
– Andrew Maguire predicts short squeeze coming in the gold market 
– Windfall profit taxes on gold and silver?
Bill Murphy’s full MUST LISTEN interview is below:

Gross Chinese gold imports in 2013 and 2012China increased the import of gold through Hong Kong last month, with gross gold imports for the month of October coming in at 147.92 tonnes, of which 131,19 tons remained as net import. China has imported more than 100 tonnes of gold each month in the past six months.  Gross imports in the first ten months of 2013 have doubled compared to the same period in 2012.
In the first ten months of 2013 China has imported a net amount of 957.22 tonnes of gold from Hong Kong. With two months to go it is quite obvious that China will surpass the 1,000 tonne estimate by the World Gold Council. Gross imports for this year stand at 1,262.82 tonnes, double the amount in the same period of last year.

Currently China holds (or more accurately, is believed to hold) $3.66T in foreign reserves – assumed to be primarily in US Treasuries. While the total comes from PBOC, the composition of the assets held is speculative. There is also, of course, the ever-popular 1,054.1 metric tons of Chinese gold reserve:
China hasn’t announced any changes to state gold reserves since authorities in 2009 said bullion holdings totaled 1,054.1 metric tons.” — though the Bloomberg article does grudgingly acknowledge that there ‘may be some discrepancy’ between the reported end-2008 figure and current reality…
So, what’s up? Is China content to ride the status quo, keep buying foreign currencies to keep the yuan down? Is it moving to advance the cause of the SDR by pushing for inclusion in it, along with Russia? What, if anything do the above have to do with the build-out of Chinese gold production capability, and in-country reserves?

1. How much non-China-based gold reserves/deposits does China control?
2. What is the rate of production of the COMBINED Chinese-controlled gold mining operations worldwide?
The data sources I stumbled upon present a remarkable sketch of the lengths China is going to in order to secure resources around the world.

China is now overtly pushing for the US dollar to be replaced as the world’s reserve currency.
While the West’s financial system has been bad-mouthing gold, all the members of the SCO, including most of its prospective members, have been accumulating it. The result is a strong vein of gold throughout Asia while the West has left itself dangerously exposed.
The West selling its stocks of gold has become the biggest strategic gamble in financial history. We are committing ourselves entirely to fiat currencies, which our central banks are now having to issue in accelerating quantities. In the process China and Russia have been handed ultimate economic power on a plate.

chinese gold rushTracing the Great Chinese Gold Rush.
China is taking over the world one gold bar at a time as this new world superpower reacts to years of being on the receiving end of the US dollar and Fed money printing.
In the MUST SEE infographic below, learn how in the space of a few decades, China has opened up her huge gold market, which is now hungrily devouring the world’s gold.

“When it becomes serious, you have to lie.” – Jean-Claude Juncker

The Fed is creating $Trillions of “new money” while central bank bullion buying is at a 48 year high. The Fed is printing money and driving up consumer prices for Americans, while China, Russia, and many countries are buying gold. It would appear those other countries trust and value gold more than they trust the dollar – especially when it is being spent, borrowed, and printed in excessive quantities. People listen to political promises and the pronouncements of the Federal Reserve Chairman, but gold does NOT. Gold simply moves to where it is most respected and valued. Currently, there is a massive migration of gold bullion from the West to Eastern governments, central banks, and individuals.

China’s foreign currency reserves have surged more than 700% since 2004 and are now enough to buy every central bank’s official gold supply — twice. The Bloomberg CHART OF THE DAY shows how China’s foreign reserves surpassed the value of all official bullion holdings in January 2004 and rose to $3.3 trillion at the end of 2012. The price of gold has failed to keep pace with the surge in the value of Chinese and global foreign exchange holdings. Gold has increased just 263% from 2004 through to February 28, with the registered volume little changed, according to data based on International Monetary Fund and World Gold Council figures. By comparison, China’s reserves rose 721% through 2012, while the combined total among Brazil, Russia and India rose about 400% to $1.1 trillion.

According to the World Gold Council’s Q4 2012 report issued today, Global gold demand in Q4 2012 reached 1,195.9 tonnes, up 4% from Q4 2011. In value terms gold demand for the quarter was 6% higher year-on-year at $66.2bn marking the highest ever Q4 total and driving annual demand in 2012 to a record value of US$236.4bn.

• Whilst Indian full year demand was down 12% on the previous year, the market performed strongly in the final quarter with total demand at 261.9t, an increase of 41% on the same period last year.
• Chinese demand was flat year-on–year, reflecting the impact of economic slowdown. However looking at Q4, total demand was up 1% on the previous quarter to 202.5t. Jewellery demand was137.0t up 1% on Q4 2011 and investment demand was 65.5t, up 2% on the previous year.
• Central bank buying for the full year rose by 17% compared to 2011, totaling 534.6t, the highest level since 1964. Central bank purchases stood at 145.0t in Q4, up 29% on the corresponding quarter in the previous year, making this the eighth consecutive quarter in which central banks have been net purchasers of gold.

Reuters reports that US gold exports in December were the highest monthly totals since Sept 2011, up a massive 43% month over month. An astonishing 1/2 of all US Gold exports in December reportedly  were shipped to Hong Kong!

We are watching real US wealth flow straight to China in exchange for a few more months of normalcy bias can kicking.

Lauren Lyster Jim RickardsThe Daily Ticker’s Lauren Lyster interviewed Jim Rickards regarding the Bundesbank’s recent announcement that it will repatriate over 600 tons of German gold from the NY Fed and the Bank of France, and its implications on the gold market over the short and long term. 

Rickards stated that the Bundesbank’s gold repatriation is world historical, is massively bullish for gold, and believes that China has doubled to tripled its gold reserves since the last official statement of 1,054 tonnes in 2009!

Rickards interview on gold is a MUST WATCH!!

China Gold June Imports_0Gold imports into mainland China from Hong Kong almost doubled to new high in 2012 as Chinese people continue to play catch up in terms of gold ownership. The Chinese were forbidden from owning gold for over 50 years.  Rising incomes, economic jitters and concerns about currency debasement and inflation in the world’s second largest economy led to increased demand in China which contributed to gold seeing another year of gains.  The very poor performance of the Chinese stock market in the last 10 years (see chart below) and concerns about property bubbles are also leading Chinese investors and savers to diversify into gold.

Mainland China imported a whopping 834,502 kilograms or 834.5 metric tons of gold, including scrap and coins in 2012This compared with about 431,215 kilograms or 431.2 metric tons in 2011, according to Bloomberg calculations based on data from the Census and Statistics Department of the Hong Kong government.  Imports in December 2012 rose to a monthly record of 114,405 kilograms, according to data from the department today.


We double down on the most destructive form of financial ineptitude with wild fire printing of FIAT currency, hollowing out our economy while exporting inflation to nearly every country.  China wisely doubles down and  doubles down again Real Money.   After the Western powers, aided by gold stealing allies like Japan, made off with well over 100,000 tons of gold China accumulated over the last 3,000 year, they are not going to let this happen again. 

By Stewart Thomson:

Fundamentally, I believe here are 4 major reasons that the long term silver chart looks “ultra-bullish.
First, the market is probably anticipating a substantial recovery in the Chinese economy, and perhaps additional government stimulus.
Second, the US fiscal cliff is likely to be resolved in a manner that encourages “risk on” institutional investors to take action on the buy-side.
Third, I expect the European Central Bank will announce measures that calm worries about not just Greece, but Spain and Italy, too.
Fourth, while the fiscal cliff will likely be resolved, I think the US Federal Reserve will expand the current level of stimulus being provided by QE3, probably in January, and this action could cause a near-vertical spike in all risk-on markets.

Silver is likely to be the greatest beneficiary of these 4 key events, even if they play out only partially.  If they play out as I’m predicting, I would expect silver to blast through the highs at $50, by early in the new year.  Silver at $80 is realistic, if these “fab four” events play out well.

China needs to add to its gold reserves to ensure national economic and financial safety, promote yuan globalization and as a hedge against foreign- reserve risks, Gao Wei, an official from the Department of International Economic Affairs of Ministry of Foreign Affairs, writes in a commentary in the China Securities Journal today which was reported on by Bloomberg. China’s gold reserve is “too small”, Gao said and while gold prices are currently near record highs, China can build its reserves by buying low and selling high amid the short-term volatility, Gao wrote. The People’s Bank of China is accumulating significant volumes of gold under the radar of many less informed market participants which is bullish. The Chinese government is secretive about its gold diversification and buying and does not disclose gold purchases to the IMF. Therefore, there has been no official update to their holdings since the barely reported upon announcement four years ago that Chinese gold reserves had risen from just over 500 tonnes to over 1,000 tonnes.

Chairman of the LBMA David Gornall told the conference, “When comparing China to the U.S., it would seem that in China, gold asset allocation can only go in one direction.  The country has only 2% of its reserves in the form of gold compared with the U.S. at 75%.” The People’s Bank of China hasn’t disclosed any changes to its gold holdings since 2009, when it said they had risen a whopping 76% to 1,054 metric tons. While the U.S., Germany, Italy and France keep more than 70% of reserves in gold, China’s share is less than 2%. “Prices have recently been supported by official sector buying,” Gornall said today, without listing any central bank. “Will the gap between the amount of gold held in reserve by the developing markets and that of the developed world close?” Brazil, South Korea and Russia have all added gold reserves this year data from the International Monetary Fund show. Nations bought 254.2 tons in the first six months and may increase to 500 tons this year, the World Gold Council said in August, exceeding the 456 tons added in 2011. China has the world’s largest foreign-exchange reserves, totaling $3.29 trillion in September, according to data by Bloomberg.