Are the Chinese now replicating the Western bankers’ modus operandi of leasing gold bullion onto the market ad infinitum via hypothecation?
Just a few years ago, China received very little gold from Australia.
However, since 2011, a trickle has now turned into a torrent:
The record high investment demand of silver and gold, coupled with monstrous central bank purchases, is putting the hurt on the “just in time” precious metal-delivery system the bullion banks have been operating for many years.
These banks are being caught in a pincer movement, which are once again threatening their hallowed, price-setting mechanisms.
There’s growing evidence that the system’s widening imbalance between supply and demand is again becoming critical. The amount of silver and gold that Western central and bullion banks are able to bring to the market is growing more and more inadequate.
As long as the cartel can make timely deliveries to all the parties who want to buy silver, then this silver price suppression scheme will continue. We will only see a freed silver price (as we nearly did in 2011) when they take silver’s contractual price (paper price) to levels which cannot be adequately delivered to both investors and industrial users alike.
With each and every Comex-Open, silver price-pummeling, that day grows ever closer.
My article “10,000 tons of gold…The math says China could have easily done it!” explains how it’s possible or even likely China has amassed 10,000+ tons of gold.
What it doesn’t explain is the context as to why this is so important. I know some know this story well, but for most, this needs repeating.
In just half a decade, the Chinese nationals, through the bourse of Shanghai, have taken delivery of nearly 7,500 tonnes of gold! This has never happened before in the history of the world.
China’s citizens (and central bank) own at least twice as much gold, in reality, as Fort Knox and the NY Fed claim to own, in fantasy!
Make no mistake about it, the Chinese appetite for gold is volcanic!
If the world at large understood the real magnitude of what’s happening in the gold market, they’d all want to go out and buy some.
They’d all see gold for what it is: the ascendant, once and future money.
Furthermore, once they realized that, they’d logically understand that silver’s available physical market (which is hundreds of times smaller than gold’s, due to the daily price rigging scam), would evaporate in a literal blink.
China’s reasons for accumulating gold.
We now know that China had the resources from its trade surpluses as well as the opportunity to buy bullion.
Heap-leaching techniques boosted mine output and western investors sold down their bullion, so there was ample supply available; but what was China’s motive?
How exactly is it possible that China acquired 10,000 metric tons of Gold since 2011?
In this excellent interview with SGTReport, Alasdair Macleod discusses the latest banker “suicides” which have all of the hallmarks of intelligence agency ‘wet work’.
Alasdair also explains how China could easily have acquired 20,000 tons of gold in recent decades – and as SRS Rocco recently pointed out, an additional 10,000 tons of gold in just the last three years!
Full MUST LISTEN interview is below:
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…
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.
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”.
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.
According 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:
While the mainstream would have you believe otherwise, Chinese (wholesale) gold demand is still trending upward.
The SGE chairman, Xu Luode, confirmed this last week at the LBMA forum in Singapore.
According 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.