Koos Jansen
BullionStar Blogs
Koos Jansen
Posted on 5 Dec 2013 by

Alex Stanczyk: Physical Supply Never Been Tighter

Wednesday I had the privilege again to interview Alex Stanczyk, Chief Market Strategist for the Anglo Far- East group of companies, who just returned from a trip to Switzerland. Alex confirmed to me the distribution of gold from west to east is not slowing down whatsoever. Refineries in Switzerland are still working 24 hour a day to cast bars for China, sometimes having difficulties sourcing the gold..

What was the purpose of your trip to Switzerland?

The purpose was two fold. We go to Switzerland once a year as part of our governance, we’re required to have an annual inspection of the gold, that was the main purpose of the trip. But in addition to that we also liked to talk to the refineries. It was myself, it was the managing director of Anglo Far-East mister Philip Judge, and Jim Rickards went with us, he sits on our advisory board.

 Alex Stanczyk Jim Rickards Philip Judge

We met with the managing director of the largest refinery in Switzerland and spend about two hours talking to him, we learned some very interesting things. Whats going on in the gold market as far as the price, is I think very counter intuitive. Everybody understands, knows and believes the price should be higher than it is, but it isn’t. There’s confusion in the marketplace, and there are two reactions; the reaction in the west is fear, confusion and uncertainty; the reaction in the east is buying. Now, this gentleman we were talking to probably has a better idea of physical gold flow than anybody else globally. He sees what is coming from the mines, he sees what is coming from the UK, and all over the world, as well as where its going. He indicated the price didn’t make sense because he has got so much fabrication demand. They put on three shifts, they’re working 24 hours a day, and originally he thought that would wind down at some point. Well, they’ve been doing it all year. Every time he thinks its going to slow down, he gets more orders, more orders, more orders. They have expanded the plant to where it almost doubles their capacity. 70 % of their kilobar fabrication is going to China, at apace of 10 tons a week. That’s from one refinery, now remember there are 4 of these big ones [refineries] in Switzerland. 

That makes sense because withdraws from the Shanghai Gold Exchange vaults are 40 tons a week on average this year.

Well, there you go.

…At this Swiss refinery there have been several times this year on which they were unable to source gold, this shocked me. They’re bringing in good delivery bars, scrap and dore from the mines, basically all they can get their hands on. This gentleman has been in the business for 37 years, he was there during the last bull market in the late seventies. I asked him when was the last time this has happened, that he was unable to source gold, he said never. And I clarified it, I asked: let me make sure if I understand what you’re saying to me, in the last 37 years you’ve worked in the gold industry this has never happened? He said: this has never happened.

…There was one other comment that was fascinating, he said sometimes when they get gold in, it’s coming from the back corners of the vaults. He knew this because these were good delivery bars marked in the sixties. This is a huge supply squeeze and its worse than anything that has happened in the last four decades. At some point there is going to be a massive squeeze on the price.

…All four Swiss refineries combined may be doing as much as  [supply China] 2000 tons this year. That doesn’t include what the Perth Mint ships to China, it doesn’t include the 400 tons the Chinese mined domestically, and it doesn’t include what they mined offshore with the mining companies they own all over the world. I suspect that total Chinese demand can reach as much as total global mining production this year.

…He also noted, in China there are 6 LBMA refineries but he has never seen a Chinese gold bar, they’re keeping it all. Gold that goes into China is like going into a black-hole. I don’t think it will be available on the market for decades to come, which only tightens the physical supply.

…The Chinese aren’t buying it for trading, they’re buying it as part of their wealth foundation for future generations. When the communists came to power in 1949, Chiang Kai-shek and the nationalist army fled the country and took all the gold with them. On that moment China had no gold, although they had thousands of years of history with gold, they had to start all over. I think the importance of rebuilding their gold reserves had been there in the last decades, but it accelerated the last three years or so, encouraging their people heavily to buy.

I also heard there is strong kilobar demand from the Middel East.

That’s because Dubai does a lot of clearing for that entire area. Given what’s happening to Saudi Arabia, and the potential that Saudi Arabia is separating itself from the United States, essentially the whole petro-dollar is at risk for them. Normally what they would do is sell their oil for dollars and then buy US treasuries, but if they’re gonna separate from the US they’re not gonna buy US treasuries. So what are they gonna buy?

Gold?

Yes, possibly. That’s what we think. We don’t think they will be buying US treasuries, they supported them for 40 years, but the US has basically stabbed them in the back.

Alasdair Macleod actually said, on the Keiser Report, that a lot of 400 ounce bars from the Middle East are being refined in Switzerland into 1 K 4 nine bars [a gold bar of 1 kilogram, 99.99 % purity] and then sent back. Is the 1 K 4 nine bar becoming some new form of liquidity?

Possibly, all the demand that we can see in China is for 1 K bars. They want kilo, and they want four nines.

When do think the price is going to rise?

I’m not comfortable to put a time on this. What I do know is that we are on the threshold of a situation that has never occurred before. A squeeze is imminent, it could take 3 months or 6 months, but all I know is that it’s coming, and I know that with 100 % certainty.   

Koos Jansen
E-mail Koos Jansen on:

E-mail address:

Tell us about yourself and your existing or proposed blog:

  • Joshua Roberts

    let’s see if spot price is allowed to notice

  • Kreditanstalt

    Not until someone big decide that one easy way to source bullion would be to deplete the Comex. But those very buyers themselves won’t do that while other metal is available because to do so would mean a price rise – for themselves.

    • AK

      The depletion is in full swing. What would you call an 80% decline this year?

      • Kreditanstalt

        It’s in the interests of CHINA to keep the Comex going. They could empty it INSTANTLY if they wished, I think…but gold at these low prices is still appearing from somewhere. Central bank lending, I would imagine…

        • AK

          It’s in everyone’s interest to keep the paper Comex going for as long as possible. We are starting to see a run on Gold with concerned investors moving Gold from banking vaults to private vaults and all indications are that they are having a lot of trouble pulling this off. I think we are nearing the end where the Comex will no longer be able to source Gold from various sources and be able to meet the demand of those who stand for delivery. How many months out that is, is anybody’s guess but it’s certain that it’s coming.

  • Sam the Eagle

    Price won’t rise until there is a large geopolitical event. China is like the U.S. was after WW2: 25,000 tons and the Bretton Woods agreement. There will be war, China will be the next head cheese, the U.S. will be third world.

    • mehmood mayet

      US is currently a third world country .No thanks to the Zionist and their winless wars of international finance. The eventual attack on Iran will finish it off

    • AK

      I agree that at some point this will all blow up and we will be in the middle of World War III. However, I do think that before all that comes to a head, that we will have some significant default event in the physical market which will propel the price of precious metals higher.

  • Peter Trzaska

    The so-called counter intuitive spot gold price action is nothing of the sort. I have been publicly predicting this precise price action since April 7th when I opposed Sinclairs idiotic claim that w atetshed had been marked with price set to rise to unimaginable heights. 365 usd down since then, my freedgold Investment Club has profited enormously from our knowledge of and insight into the realities of the gold market. We are not fools and naive novices like Rickards and his absurdly small-minded ilk. If investors want to check out the boast and earn themselves a small fortune. They should heck out my freedgold blog. Previous a Metals Pete 365 v 0 Sinclair n Conmen Crew. Since October 28th, a mere 5 weeks ago , the tool we use has gained 85pc on simple knowledge of where spot paper gold price must go. This ain’t rocket science, kids. And the facttat Sinclair, Rickards and the rest of those liars appear incapable of seeing clearly may indeed say more about their lack of integrity. More sinning than stupid? Perhaps. Get an education in gold at the blog. Or keep scratching your head at the d’ooohhh, so confusing price action!

    • Jo

      Well take your money and run into assets of real value. Don’t be greedy thinkinng you know when the markets will fall or your wealth will be stolen again as their plans are to draw one in and then tank and take. Best of Luck!

    • AK

      There is nothing confusing about the price action because it is clear as day that the price is managed. That can only continue as long as there is physical Gold, without that all the price action in the paper market would not be possible. This article as well as the Comex, LBMA and ETF inventories are a good indication that we are nearing the end of an abundant physical supply, which means that sooner or later the paper shenanigans will have to end.
      Good for you that you have been able to capitalize on the price action. I hope for your sake that you have put the profits to good use and have acquired some physical metals. By the way, Jim Sinclair was foolish to go out on a limb like that, but in the end he will be proven right.

      • Ashley

        AK, consider this: what if the paper price has actually been managed UP, not DOWN? What if the paper price is falling because it is no longer being supported by the entities that needed it to remain high while they prepared for its ultimate collapse? Uh, oh.

        • AK

          Brilliant theory!! This is about as brilliant as Fred’s theory that the West is suckering China into buying up the entire world’s reserve of Gold because nobody else wants it! Makes perfect sense – why would we need any Gold if we can just print as much money as we want. The Chinese must be soooo stupid to buy all this worthless Gold. Who needs Gold when you can’t just print more of it. Yeah Ashley, you are on to something here. Thousands of years of monetary history don’t matter, debt, money printing and quadrillion dollar derivatives don’t matter because they are all backed by the almighty DOLLAR. The gold bugs and the rest of the world who are buying up all the Gold must be crazy. We Americans just KNOW better and would never be willing to trade our precious dollars for worthless Gold. The rest of the world are just idiots, they could have just waited until the Gold price drops to $0 and then picked up as much Gold as they wanted for FREE!

      • Peter Trzaska

        Simply WRONG! So absurdly short-sighted it is scarcely believable anyone could be so WRONG. you fail to understand the absolute most fundamental aspect, of these gold markets. You understand none of it! And so you talk complete BS. YOU TRULY ARE AN IGNORAMUS BEYOND BELIEF. You are pursuing a narrative and rationale that has no basis in reality, only in YOUR IMMENSELY ENFEEBLED MIND. Shocking stupidity. But, hey, look at the facts!! Not your theory!!

        • AK

          Exactly, don’t take my word for it, just look at the facts. I posted my comment a month ago and what have we learned just since then?
          Bafin the German equivalent of the SEC and CFTC has officially announced that the precious metal manipulation is worse than the Libor scandal. The German regulators can’t be muzzled by US officials the way that our regulatory bodies are, so they report it as they see it. This is a bomb-shell coming from an official regulatory agency and as usual the lame stream media has not uttered as much as a peep. However, the rest of the world is paying attention.
          What else have we learned? China imported 79 tons of gold in just one week! That is an incredible amount and they won’t stop as long as they have toxic dollars to spend and as long as gold in size is still available.
          How about the fact that we now know that all the German gold is gone? The Fed has returned a minuscule 5 tons of the German gold in one year and it is now official that it is not the same gold. Yeah, there has been lots of excuses and even Germany has changed their story but at some point you have got to connect the dots and when you do that it becomes pretty obvious that the gold is no longer there.
          The German people are paying attention and there is now new legislation under consideration that would require Germany to repatriate ALL their gold. If this should come to pass it would be interesting to see what the US does next.

        • AK

          And one more thing, if your only response to my comment is further insults don’t bother to reply.

          • Peter Trzaska

            You are a Sam artist, You are another filthy little fraudster lying to people, ripping them off, dispensing a wholly redundant and flawed narrative and logic. A reader just commented that the clue to your deep and ingrained stupidity is in your face. Difficult to disagree. But that is forgive able. Not your lying fraud. You have NO idea about which you speak.mNone. You mislead and deceive only. What price action have you ever got right?! You simply do not have the intellectual capacity to abandon your preconceived and false philosophies. You are a prisoner of your shrivelled to pea-sized brain and the absurd brown noshing paradigm you and yours espouse. Tell me this, you half-wit…why didn’t you see the outrageously blatant guidance that spaper gold price was now going to be allowed to die? Because you are brown noshing the rest of the fools, and tugging on to their coat tails . Oh, and what is the meaning of Bubas repatriation request, and the abundantly predictable problems which necessarily accompany such. Anyone who stores their Gold Bullion in anyone but their own hands will never see it again. And that applies to those foolish enough to buy tour failed rhetoric and store with your crime family, your masters, the Anglo Far East Company. Your fraud, and the reason you defend your idiotic stance. THIEF!

          • AK

            All I have ever done is express an opinion. I don’t give advice, never have never will. People need to do their own research and figure out the thruth for themselves. You are a mental case with anger issues. Please don’t respond to my posts.

    • Veracity

      Actually Sinclair and all the Gold commentators you deride
      with so much vitriol are technically correct and gold would have reacted as
      predicted. Alas the US Government / ESF in collusion with the WS banksters were
      then, and always were, very short Gold in naked contracts and price!

      So they connived to smash the price big time; in fact it
      has always been suppressed and smashed from time to time, but since April 2011
      for Silver and September 2011 for Gold, these manipulators decided that they
      better completely destroy the price with unprecedented vengeance and have done
      so ever since, or else they’re all blown sky high with their naked shorts, all
      the thousands of tons of stolen oz from customer accounts, and leases at much
      lower prices.

      Back in April 2013, 15 of the biggest bankster crims met
      at the WH just when they were about to default and the entire criminal, fractional
      Gold racket was about to blow up in their ugly faces.

      And lo and behold, just hours later the most gigantic
      raid with hundreds of tons of naked shorts commenced to destroy prices in Gold
      and Silver, and has never stopped since.

      There is no disputing the facts that Gold and Silver prices
      are 100% controlled and suppressed by these criminals in the USG and WS.

      And it is clear that no one could ever, even in their
      wildest imagination, anticipate that they could be of such incomprehensible criminality
      and venality and destroy the price with such callousness to far below
      production costs. From $1920 down to $1180 for Gold, from $49.78 down to $18.20
      for Silver, that’s the price destruction these crims have wreaked upon an
      entire industry, when production costs are much higher than current prices, all
      so these crims could save their hides after their wicked crimes got them into
      nigh bankruptcy.

      Yep that’s OUR government!

      • Peter Trzaska

        Hey everyone, and I do mean EVERYONE, who has lost money by taking the ‘established’ gold ‘experts’ advice, I hope it is of great consolation to you that there are those out there who deem that those who misled you were, apparently, technically right?! There will always be apologists for the scam artists and fraudsters. I let the FACTS speak, in this case most articulately, for themselves! PMPete 365 etc etc. my advice is intended for those who are tired of being deceived by those who gain from their duplicity. For those with eyes to see the stark evidence which I put before you, you will know to leave behind the obfuscation, deceit and duplicity which has served only the pockets of Sinclair, Fitzwilson, GATA, Turk, Embry, Sprott, Rickards and the rest of the sorry and always wrong excuse for ‘experts’… For those of you who continue to resist the clear and indisputable evidence of your eyes, I can only hope you Get Well Soon. This is, incidentally, my last word on this matter here. Those who are meant to see the light, will do, and will know what to do. My thoughts, as free as the wind, can be found at my freedgold site. My mission has always been to smash, by whatever hard-hitting, no nonsense means necessary, the obfuscation and deceit which experts employ to defraud you. My time and resources remain focused on that goal. I have nothing more to say, nor read, here.

        • AK

          Here we go again. A trader who called the top and has been profiting on the down move thinks he is smarter than all the experts who have been correctly calling the shots for decades. Let’s not forget that Sinclair called for $1675 by 2011 years in advance when Gold was hovering around $200. EVERYBODY thought he was crazy, but he not only called the price but he also correctly predicted by when it would happen.
          The bottom line is that all these experts are not wrong just because the price happens to be in decline right now. They look at the global macro-economic picture and when you do that you simply can’t draw any other conclusion than owning some Silver and Gold as protection against another financial melt-down. Trading shares and paper and owning physical Gold and Silver as insurance for your financial assets are two very distinct things. The folks Peter mentioned have all made a lot of money holding precious metals and they all are in agreement that the best is yet to come. It has to, because governments are not addressing the problems and continue to spend more and more money. Not to mention that Gold in this country and Europe is despised and under owned so it has become a great contrarian value play.
          The bottom line is that you don’t ever sell your physical holdings just like you don’t cancel your health insurance because you think you are not going to get sick this year. Physical Gold and Silver should be a mandatory holding in everybody’s portfolio. You can use your paper assets to trade, but make sure you have some physical because by the time that it’s obvious to everyone that they need to physical Gold and Silver it will be too late because it will all be gone.

          • Ashey

            You guys making fun of Peter don’t even comprehend him. He’s not talking about selling physical gold, he’s talking about holding physical gold while shorting the paper price. The Freegold view posits (in part) that the paper price will fall to zero despite massive physical demand because the paper price is not set by physical demand. In fact, as more paper gold investors move into physical gold or other commodities the paper price will continue to fall due to decreasing demand for paper gold products. At some price point the physical market will freeze up and stop trading until gold is steeply revalued based on true physical demand. The key is this gap-up in price–not a steadily rising paper gold price. And everyone who depends on the paper gold price rising will continue to be hammered.

          • AK

            Ashey,
            Peter effectively is accusing the most trustworthy Gold and Silver experts of fraud because they didn’t predict the price smash the way he did. Peter is a paper trader and that is great, but he simply doesn’t know what he is talking about when he tries to discredit the most respected individuals in the industry. Their collective message in this broken financial system for people to protect their financial assets by owning precious metals is extremely important and know-it-alls like Peter need to tone it down because his short term paper trading is very different from the long-term insurance that physical metals provide.

          • Peter Trzaska

            Absolutely hilarious first sentence provides all we need to know. Replete with pig ignorance and the most flawed possible reasoning. The thinking of a moron. Firstly, I am NOT a trader. I’ve owned Gold Bullion since 1981 and since 2007 have been 10c invested in only Gold Bullion. I sold a London flat and a house in order to fully fund a substantial purchase.
            At that particular time it would have been foolish to counter the gold experts advice because the system had designated a rising paper gold price rise. Those experts were right. However, in 2011, a decision was taken to allow the paper gold price to collapse. At that point, anyone advocating higher paper gold prices was in the wrong. And so it has come to pass. Those experts have been wrong ever since 2011 and they will continue to be. My personal email box is daily istuffed full of gold investors grateful to have been led away from continuing losses at the call of the gold experts. Those experts have lost an enormous amount of fools an enormous amount of money. The record shows that for more than TWO years they have been wrong. This is not a blip. This is flawed reasoning and criminal stupidity. What is so ridiculous and wholly inept about your reasoning is that you fail to address the fact that I have been right in those 2 + years.
            The fact is a crossroads was reached. The experts continued blindly now on the wrong path. Was I supposed to go with them, seek comfort in numbers, now lead astray my readers? I read the signs, saw what had been decided, saw that a new route had been elected and took it. Everyone else had the same opportunity to take that route! They didn’t! They pursued the wrong route. Now that’s all find and dandy if you are not in the job of shouting wrong advice to naive gold investors, if you are not an expert enjoying personal gain from voicing your WRONG gold price action advice.
            My blog speaks for me. I opposed the experts advice and have saved investors a small fortune. Is that an outcome deserving of pig ignorant criticism from an apologist for fools and deceivers? AK…you are a moron, the kind of self-appointed judge and jury who leads equally moronic astray.

          • AK

            And you are a self-serving pompous a@@ and think you are infallible and will always be correct. I advocate owning some physical precious metals as insurance against a paper ponzi system that is fraud with debt, manipulation and endless money printing. Sure you can play the game in this casino and get ahead but most people don’t have the know-how and are likely getting fleeced in the markets that are designed to benefit the big boys.
            Gold and silver are in a corrective phase and are kept from rising by the likes of JP Morgan who pretty much have the paper market cornered. At some point gold and silver will break free from the paper shackles and that likely won’t happen until we see a critical physical shortage or until it becomes obvious to everyone that paper gold and silver prices are manipulated. This is not some conspiracy theory, it has now been officially reported by Bafin and the whole world knows it.
            Stop with your insults already. I know you think you are smarter than everyone else. Either give me something of substance besides your trading record which I could care less about or don’t bother to reply.

        • Gregory Clark

          Peter, you sound like an idiot. The only way to lose money is to sell. An ounce is an ounce and a 10 kilo bar is still a 10 kilo bar. I believe that if you have been buying at all this year and holding you will find yourself in pretty good shape before the end of next year and I still wouldn’t sell and when the time comes that all the worlds currencies are only worth the paper they are written on along with all stocks, pm paper, and other paper assets you will do better burning them for the heat than anything else. At that point you will have some bartering power.

          • Peter Trzaska

            Haha…I may sound like an idiot, but that’s because you are listening with ears that contain nothing between them. You know nothing, jumped on the idiotic criticism of idiots and took their words as wisdom. In other words, Greg, you ARE an idiot. Jeeze, what a group of readers. Is there an award for the site with the dumbest readers? Unbelievable. None of you knows anything!! Keep following the fools, keep getting it wrong, keep losing money, oh and keep up the stupid beyond belief, criminally idiotic, responses. Amazing!

        • Arthur Cutten

          Can I have your autograph Peter? You sound like a heroic figure.
          Just think, you have a flawless trading tool, and rather than use it to make yourself filthy rich, you just give it away. Wonderful. What a humanitarian.
          Or maybe you are just a typical trader, who mistakes randomness for system, and their own dumb luck for superior knowledge.
          Been there, done that. So I won’t criticize too much. But I hope you are not over the age of 30, because that would be truly disappointing.

          • Peter Trzaska

            No, I’ve never been a paper gold trader. I’ve held substantial amounts of Gold Bullion since 1881, and added significantly to those holdings back in 2007 when I invested 100 PC in gold bullion. You seem happy to cast aspersions without taking time to acquaint yourselves with the facts. This is little surprise to me. Knowing as I do one of your sources, said source is extremely critical of your lack of insight, arrogance, and absolute failure to grasp the whole, only ever getting half the picture. Splendid evaluation by your source. Spot on. There is no luck, dumb or otherwise, for my decision to -at the behest of hundreds of readers- form the Freedgold Investment Club and allow members to for the first time profit from the paper gold duplicity enacted against them by the BBs and those who speak on their behalf, the gold experts. We’ve done better than I could ever have imagined. The rationale for the Club. To accrue considerable fiat from gold price inevitable collapse and with such gains to increase the Gold Bullion our invested funds would buy today. Hey, nothing particularly humanitarian in that. Just a smart move…that has proven to be correct, will continue to be correct. Not that you can see that. Your head is jammed so far up your ass that even those who know, deal with you, and source your unenlightened work, say you are a fool and incompetent. Next

          • AK

            Why do sound so angry with every response? If what you are saying is true than the more power to you. It sounds like you are able to pick up some physical at a considerable discount which is great. I would still advocate that you always maintain a core position in physical metals that you never sell because you never know when the opportunity to buy bullion by the average investor will seize.

    • Dimi

      How about your integrity calling all other gold experts liars, idiots, sinful, novices, fools and stupid?
      Gold bugs are not traders, they preserve wealth and capital until genuine opportunities come up. You are peddling in the worst possible manner.

  • prancer00

    wow ,also consider claims per ounce on Comex gold now at 70:1 ,normally 24:1

    • AK

      The signs are obvious and they are all around us. Only in this country do people still not see the writing on the wall (probably because it’s in Chinese)….

      • J. Bauer

        lol

        • Jim

          double LOL

  • anandsr

    The important point to remember is that the price of gold is not the price of physical, but the perceived price of XAUUSD. Basically the price is decided by the Currency market. Yes XAUUSD is losing. Nobody wants it. That is different from Physical. So what we are seeing is stress to the fix between XAUUSD and Gold. It will break at some point. Yes the price which is determined by XAUUSD will go down to zero, and Physical will not be available at that price.

    The above WILL happen. If you think that XAUUSD will rise, then you are fooling yourself. It will go to zero. Yes then we should have a revaluation. So people who will win, are the ones that will keep physical and hold it through the coming crisis, where USD (along with XAUUSD) will become worthless.

  • Adam Ingwall

    And then we got India as well :), seems to have alot of focus on China…

    • JK474

      While there is strong innate demand in India the Indian government has been suppressing gold imports with ever higher tariffs so as to improve their balance of trade.

      • AK

        That’s not stopping the Indian’s to rid themselves of the failing rupee. The Gold black-market in India is on fire.

  • keith7

    China is going to have its first ever gold conference in September 2014 – coincidence or not ?

  • wheresthefreemarket

    Is China colluding with top bullion traders to suppress the gold price while buying up global gold reserves?

    This is manipulation by very big traders, notably JP Morgan and possibly acting in collusion with China…

    http://www.arabianmoney.net/gold-silver/2013/12/06/is-china-colluding-with-top-bullion-traders-to-suppress-the-gold-price-while-it-buys-up-global-gold-reserves/

  • Fred234

    What if China is being suckered into buying all this gold using its reserves? Seriously, if it’s so obvious what is happening why is the West letting it happen?

    • AK

      That’s funny – they are trading their PRECIOUS dollars for WORTHLESS Gold – the Chinese are so stupid….

      • Fred234

        China only has 1 trillion of USD. We could easily call these bonds for redemption and print the money for them. I’m not saying that is good, what I am saying is that the West and the US have many options at their disposal.

        • AK

          Sure, we could redeem China’s treasury holdings WITH MORE PRINTED MONEY! That is the only option we still have, is to print more and more money or let everything collapse. The bottom line is that China is accumulating as much Gold as possible and it is mostly coming from the West. This is a travesty and a classic transfer of wealth from West to East that will put China in the driver’s seat for generations to come.

      • Will S.

        Gold has been a store of value for 5,000+ years. China has imported over 7,000 metric tonnes in the last 15 years, and their goal is to internationalize their curreny by 2015.

        The only way they will be able to do that, given the size of their economy and their population is to have at least as much Gold as the U.S.

        They will accumulate until they have circa 10,000 tonnes IMHO.
        http://moneymatterstoo.wordpress.com discusses it in more detail
        BUT, I think Bitcoin might be the undoing of the dollar before Gold and Silver are fairly valued once more.

        I dismissed Bitcoin et-al perhaps, but now think they are poised to undermine the dollar because no government can control it. They’d have to legislate first, and that would expose their actions. Once that happens people I suspect will then turn once more to PMs in the West.

        But we could see a rush for the exits from crypto-currencies into hard assets as soon as legislation is discussed/mooted. And Obama has already spoken to Jeff Bezos of Google about it.

        They are already worried, the curtain is being lifted back, and Snowden has shone a light on their actions.

        The people are waking up to the manipulations… But far too many are sleeping on duty. When inflation can not be denied any more, then the markets will speak… Oil over $150/bbl should do it…

        • AK

          These are all good points, although it remains to be seen what role, if any, Bitcoin will play in undermining the fiat currencies.
          As far as the amount of Gold that China has amassed, I firmly believe that China has been very careful to underreport the amount of Gold that they are buying. The official numbers that are reported are likely greatly understated. There are some fairly reliable sources that estimate that China has already accumulated 8 to 12 thousand metric tons and some estimates are as high as 20 thousand tons. I have no doubt that China already has more Gold than the U.S. because there is simply no way that the U.S. still has over 8 thousand metric tons as is being claimed. The fact that there has not been an audit and that nobody is even allowed to see the Gold and the fact that Germany can’t get their Gold back are all signs that the U.S. Gold has been swapped and leased out to help keep the Gold price from rising.
          The wealth transfer from West to East is in full swing and when people in this country will realize that our government allowed this to happen, all hell will break loose.

  • charlestonvoice

    All for very interesting, but to WHOM is the gold going to in Asia? I strongly suspect it is going to Rothschild-controlled institutions or in Rothschild custodial ‘partnership’ with governments. And still the world does not see it, and it remains under bankster control albeit from another citadel elsewhere in the world.

    • mehmood mayet

      The Chinese have experience the Jew in the form of Sassoon and the Opium wars in the 19th century. I believe the Chinese have learnt their lesson and are cognizant of the Khazarian Jew mafia and their machinations

      • charlestonvoice

        If the Chinese had not learned from Chiang kai shek paying his soldiers with silver, they certainly wouldn’t have had a communist Mao.

  • Jo

    History always is the same, reverting to gold and silver as real money, here we go again, depression followed by currency wars, trade wars and then WWlll. China will obviously own the world and the power because they own the most gold. The U.S. will be forced to sell everything to them to eat. I say Why Not GOLD.com to defend your personal assets! They are small, trustworthy and the lowest priced on the internet!

    • ds80

      “The U.S. will be forced to sell everything to them to eat.”
      Doubtful. The world depends in no small part on US farming, to eat.

  • Veracity

    The criminal banksters were always short in naked shorts,
    short in price on leased Gold, and short in metal stolen from their customers!

    So they connived to smash the price big time; in fact it
    has always been suppressed and smashed from time to time, but since April 2011
    for Silver and September 2011 for Gold, these manipulators decided that they
    better completely destroy the price with unprecedented vengeance and have done
    so ever since, or else they’re all blown sky high with their naked shorts, all
    the thousands of tons of stolen oz from customer accounts, and leases at much
    lower prices.

    Back in April 2013, 15 of the biggest bankster crims met
    at the WH just when they were about to default and the entire criminal,
    fractional Gold racket was about to blow up in their ugly faces.

    And lo and behold, just hours later the most gigantic
    raid with hundreds of tons of naked shorts commenced to destroy prices in Gold
    and Silver, and has never stopped since.

    There is no disputing the facts that Gold and Silver
    prices are 100% controlled and suppressed by these criminals in the USG and WS.

    And it is clear that no one could ever, even in their
    wildest imagination, anticipate that they could be of such incomprehensible criminality
    and venality and destroy the price with such callousness to far below
    production costs. From $1920 down to $1180 for Gold, from $49.78 down to $18.20
    for Silver, that’s the price destruction these crims have wreaked upon an
    entire industry, when production costs are much higher than current prices, all
    so these crims could save their hides after their wicked crimes got them into
    nigh bankruptcy.

    Yep that’s OUR government!

  • Peter Cooper

    Yes, the same thing is happening in silver as we report on arabianmoney.net today. Indians have bought 44% of the investment supply of silver this year against almost no demand last year. That’s because they are being taxed on gold. But again the physical silver price bares absolutely no relation to conditions of supply and demand which are extremely tight.

  • http://www.winteractionables.com/ Russ Winter

    This week’s Shanghai exchange deliveries were at 50 tonnes, keeping those Swiss refineries quite busy. If there was more capacity, would the Chinese buy even more.

Copyright Information: BullionStar permits you to copy and publicize blog posts or quotes and charts from blog posts provided that a link to the blog post's URL or to https://www.bullionstar.com is included in your introduction of the blog post together with the name BullionStar. The link must be target="_blank" without rel="nofollow". All other rights are reserved. BullionStar reserves the right to withdraw the permission to copy content for any or all websites at any time.