china gold

The suppression of gold prices is essential at all costs to the Anglo-American banking interests.  The saber rattling and attempts to lure Russia and China into military conflict are about who controls the financial world.   Russia and China keep accumulating the eternal currency – gold.
The American Empire and their EU disciples continue to accumulate debt and print fiat currencies.
Has fiat paper ever won out over gold in the long-run?
Change is coming…

Indian gold

The Death Of The Indian Gold Market Has Been Greatly Exaggerated!
Trade statistics for the month of August have just been released in India, showing a huge surge in gold imports compared to August of 2013.
Meanwhile,  the Chinese government backed Shanghai Gold Exchange (SGE) brought forward the launch date of its international gold trading platform which is hosted in the city’s free trade zone (FTZ). The gold trading platform will be known as the ‘international board’.

In a surprise announcement, the SGE said today that the international board will go-live today September 18, eleven days ahead of its original launch date of Monday September 29.

Great-Wall-of-Gold

The Eastern Bloc of countries realizes they’re at war with Western ones, not a shooting war, but a financial one.  This is an unconventional war, and an unconventional war requires unconventional tactics.
The “slings and arrows” flying through the air aren’t bullets and bombs, but rather economic sanctions, currency swap agreements, and boycotts.  Whether you realize it or not, this war has been red hot for some time, and will soon come to a head.  There’s actually more to gain or lose here, than most people can wrap their heads around, and the results of this conflict will change the world forever.
In partnership with Russia and others, China is stacking so much gold, at such an amazing speed, that the world has never seen its like before.
There is definitely a multi-leveled strategy here, to be the center of gravity for gold-trading/pricing/storing: not just for Asia, but for the world.
The Chinese government is doing all this to fortify its position, by building the “2nd Great Wall” for its own protection: the “Great Wall of Gold”.

Caption Contest 1

The Shanghai Gold Exchange will be opening up bullion trading to international investors on September 26. China is striving hard to internationalize their currency, and as well, remove the pricing privilege in markets which the West has monopolized so far.   This is a very bold move, and part of their larger plan to make China a bullion-trading hub.
Since their objective is also to internationalize the Yuan, trading will be settled in Yuan and not dollars, which of course, is another small nail in the dollar coffin. The exchange will be serviced by a 1,500 metric ton vault, which is very impressive, indeed.
As if that wasn’t big enough, the Singapore Exchange Ltd. (SGX) will also be opening up a 25 KG kilobar contract to be traded.
These Asian trading platforms will not be as opaque as Western platforms, and will be physically backed, so we believe that this will indeed be the future of international precious metals trading.
This is concrete proof that not only is the West’s gold and silver moving East; their ability to manage prices is also slipping right from under their eyes.
September is shaping up to be a very eventful and historic month, even if we do not see any great changes in price action.

Gold as a weapon in a global currency warAccording to the latest figures by the Swiss Customs Administration, the country has exported a total of more than 600 tonnes of gold to Asia in the first half of this year.
The graph below clearly shows the flow of physical gold to Asia:

saudi goldAccording to the latest numbers figures by the Hong Kong Census and Statistics Department, China has imported less gold in May.
Gold futures in Shanghai are currently being traded at a discount to the international London gold price
This development suggests Chinese demand has cooled down somewhat from the 2013 high.
Last year  Chinese bank imported a total of 1.158,15 tonnes of gold through Hong Kong, when the price of the yellow metal dropped the most in more than three decades.

china goldThe answer is, we don’t know.  And we don’t know because we can’t know.  Reuters ran a story this morning which asserted that China’s gold imports had dropped to a 16-month low in May.  But the truth is, we don’t know what China’s total imports in May were.
There have been several reports and commentaries which suggest that China’s demand for gold is declining this year.
The conclusion is that the gold is headed for another down-leg.
Seemingly, the current action in the gold market is contradicting the premise that gold is headed lower
If I were U.S. policy-makers, I would be worried about the reasons China has decided to go “cloak and dagger” on their gold imports…

LBMA Singapore 2014 Xu LuodeThe official Chinese gold demand figure for 2013 according to the World Gold Council was 1189 tons. 
At an LBMA forum in Singapore this week however, Xu Luode, the Chairman of the Shanghai Gold Exchange informed the audience that “The Chinese consumption demand of gold hit 2000 tons in 2013“.  
So much for the Western financial media’s denial of epic Chinese demand for gold. 
The official confirmation of massive Chinese gold demand wasn’t the only take-away from the forum however, as Luode announced China’s goal of instituting a Chinese daily ‘fix’ for gold similar to the London fix. 

China goldAt this moment there are 12 banks that can import gold into China.
These banks have a PBOC license to import gold, though for every shipment they need a new approval.
Before approval the gold is “parked out of China…and only transferred and shipped into China when needed”, – which should be interpreted as only shipped into China when PBOC approval is granted.
In the past years most gold that entered China mainland came in through Hong Kong. Why? Because Hong Kong was the parking spot for gold outside of China before it was allowed to be imported.
This will soon change as the Shanghai FTZ will take over this role.

Daniela Cambone Jeff ChristianI just stumbled upon a video which I had almost forgot about.
It’s an interview with Jeff Christian by Daniela Cambone from Kitco News, discussing the physical gold market, specifically the role of Switzerland and China.
Mr. Christian claims that investment gold demand is higher in Switzerland than in China.
I disagree.

caption contestAccording to the official 2014 report, the BoE had 755 tonnes less gold in their vaults in February 2014 relative to February 2013.
However, when we look at UK’s net gold trade over this period (March 2013 – February 2014), we can see 1593 tonnes were exported.
GLD’s stock lost 451 tonnes over this period.
This leaves a gap of 392 tonnes (1593 minus 1201), which had to be supplied by additional LBMA or private vaults in London.

return of the kingChina National Gold Group Corporation or China Gold, China’s largest gold conglomerate with primary interests in mining and also refining, is on the hunt for global acquisitions and partnerships, the company’s president said yesterday.
Mr. Song said that his company is searching for opportunities in the gold and silver markets. “The growing strategy is very clear: We are going out looking at things globally,” he said through an interpreter. “We have a few opportunities, at different stages.”
For 53 years the Chinese people were banned from owning gold.
But that all changed in 2003, and now the enormous demand by 1.3 billion Chinese over the last ten years is causing an important paradigm shift, as gold and silver moves from the West to the East.
The ramifications of that paradigm shift have yet to be appreciated.

empty-vaultJim Rickards, author of NY Times Bestseller The Death of Money, has just reported that the head of global commodities trading at LBMA bank is expecting an imminent gold “demand shock” as a result of the Chinese credit crisis. 
Is the long anticipated demand side supply squeeze in physical gold finally here?