Koos Jansen
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Koos Jansen
Posted on 2 Jan 2014 by

Sun Zhaoxue: US Intends To Suppress Gold To Ensure Dollar’s Dominance

I’ve got a confession to make: I believe in conspiracy facts. After having witnessed scandals like NSA, LIBOR, Lance ArmstrongISDAfix, money laundering by too big to fail banks, rigged currency ratesBernie Madoffthe US sub-prime crisis, bank bailouts (in Europe and the US), the Greek tragedy, 9/11, the Iraq invasion and Enron, I came to the conclusion it is just what people do when there is money and power at stake: they conspire.

When it comes to gold price manipulation there are currently four camps:

Camp one states the price of gold isn’t manipulated at all. (Although we know bonds, interest rates, stocks, commodities, CPI and exchange rates, and thus all currencies are manipulated. Furthermore, futures exchanges are flushed with enormous amounts of contracts in the most illiquid hours, trades that don’t make sense from a profit perspective because the seller doesn’t get the most money for its products. Sure, it happens both ways, which only illustrates how easy the price is manipulated.)

Camp two states the US (and its allies) are manipulating the price of gold, a historical fact, in a last attempt to save the US dollar hegemony.

Camp three states the Chinese have been manipulating the price of gold in recent months, in their challenging quest to diversify their foreign exchange holdings. Supposedly they bring down the price of gold through the western paper markets to buy as much physical gold in exchange for their still relative strong dollars. If true, a strategy that has worked excellent in 2013.

Camp four states the price of gold is manipulated in conjunction by the west and the east. A result from deals made behind the scenes, or an orchestration of a new monetary order through redistributing gold among nations according to the size of their economy.

Because I learn every day, eventually I will choose one camp to reside. Meanwhile I’ve been staying in camp two, three and four in recent months – perhaps closely circling the truth – occupied thinking of all interests, evidence and complexity. One thing is for sure, the ones that manipulate would never admit and always blame another. This is why all Chinese blame the US.

The next translation I present is from a speech by Sun Zhaoxue, the most influential leader in the Chinese gold industry. As president of the China Gold Association and president of China Gold Group, China’s largest gold mining company, he spoke at the Lujiazui Forum. A yearly conference attended by prominent Chinese economists on new visions for financial reform and opening up.

Translated by Soh Tiong Hum:

Sun Zhaoxue: The United States Intends To Suppress Gold To Ensure The Dollar’s Dominance

Sun Zhaoxue Forum m

At 20:18 on June 28 ,2013. Sina Financial News.

China National Gold Group Corporation, General Manager Sun Zhaoxue.

Sina Financial News June 28, 2013 – At the Lujiazui Forum River Nocturne sub-forum held today, China National Gold Group Corporation General Manager Zhaoxue said the United States intends to suppress gold to ensure the Dollar’s dominance, that the fall in the price of gold was premeditated, and a part of the currency war.

“The hottest topic at the moment is oil and gold. The ground war we are seeing around the world is I think war for oil whereas gold is the currency war. Why? We observe that the integrity was the driver for US Dollar to become world reserve currency. The US Dollar and gold decoupling from 1971 caused the US Dollar to depreciate massively. From 1990 onwards, the Eurozone was in consultation to form a strong Euro to counter the US Dollar, in order to prevent the latter from stripping Europe of its wealth. The Euro was born in 1999, supported by its strong economy and 11,000 tons of gold.

 

With the birth of the Euro a competitor to the US Dollar was created, and so the US decided to lay a trap for the Eurozone as part of the currency war. Some countries in the Eurozone violated the Eurozone’s norms by issuing bonds. Which entities participated in the issuance? US investment banks. After the debt was issued, it was US ratings agencies that struck a blow to the Eurozone by saying that its economies had problems.

Only gold remains on par with the US Dollar to benefit from the Eurozone and Euros collapse. This is why the US began to suppress gold by issuing a statement two months ago that the Eurozone will sell its gold when it is unable to service its debt, then stating three days later that the news was false. Furthermore Goldman Sachs made a forecast for the gold price at the beginning of the year but suddenly changed its course saying the gold price will fall to $1300. Buffet said that he would not buy gold even if its price fell to 800USD. Our research indicates that Buffet made a lot of money from four gold companies. So his statement is inconsistent with his personal action.

Bernanke’s speech followed, saying that monetary easing will end, that the US economy is improving. This series of examples shows that the fall of the gold price is premeditated. So I say that this process is a genuine currency war.

Many people say that gold is just a beautiful thing. Then we have to ask the US why they store so much gold but instead of selling gold, they issue debt to other countries to rescue the financial market.  The US owes Germany so much gold but instead of repaying immediately, it sets a 2020 deadline to return the gold. From this example and process as well as some typical factors, this is a downright currency war to maintain the US Dollar hegemony by defeating all other currencies. I shall stop here.”

In Gold We Trust

Notes by the Translator:

1. Some of the phrases did not make sense.

2. The first paragraph was an introduction but the second paragraph was worded like verbatim but without open and close inverted commas.

3. There were a lot of ‘fillers’ that are typically used in Chinese conversation but which would be unnecessary or casual in a speech or written material.

Therefore I suspect that this article is a transcription of what Sun said during the forum. But the transcription probably suffered from missing words which is why some parts did not make sense (being filled in by a transcriber) and maybe even not a full transcription but only excerpts.

This article appears to be a transcription of excerpts or some kind of conversation in the forum. Even the choice of words ‘Eurozone’s norms’ is very strange.

Related articles:

Building a strong economic and financial security barrier for China

China Prepares For Financial Warfare

Koos Jansen
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  • 24 carat

    THIS IS IT !!!
    Everything is said by Sun Zhaoxue !!!
    THANK YOU VERY MUCH KOOS.

  • Wanda Louve

    This speech sums up in one breath all the major events in the history of the past decade, and the political choices that followed therefrom . Political choices the financial industry (the real rulers ) needed to retain the powers that be .
    Physical gold gives a fair view of the political and historical falsifications . Gold is a store of value and in a world in which all other values ​​are falsified the (electronic) gold price should show that the fictitious economy continues to be retained. .
    To maintain power and value , a reason must be created for colonial plunder and power overthrows . That ‘s why there was an invasion of Iraq . That is why the Greek tragedy should weaken Europe . Divide and conquer techniques to sulblieme highlights.
    The suppremacy of the dollar and its regime are not bathed with a high physical gold price . If gold becomes an official part of the real economy,it would make the dollar worthless and gold would disciplinary work disciplinary on debt-driven nations.
    Gold on the balance sheet of the ECB is a value which the dollar regime can not afford. The dollar should give the value of the financial industry, not gold.
    The redistribution of gold in proportion to the economies of the world , would undo the dollar suppremacy . As long as the gold price can be manipulated, the dollar power will not be broken .

  • Wanda Louve

    This speech sums up in one breath all the major events in the history of the past decade have given and the political choices that followed therefrom . Political choices facing the financial industry (the real rulers ) needed to retain the powers that be .
    Physical gold to give a fair view of the political and historical falsifications . Gold is a store of value and in a world in which all other values ​​are falsified the electronic gold price should show that the fictitious economy continues retention bar .
    To maintain power and value , a reason must be created for colonial plunder and power overthrows . That ‘s why there was an invasion of Iraq . That is why the Greek tragedy Europe should weaken . Divide and conquer techniques to sulblieme highlights.
    The suppremacy of the dollar and its regime are not bathed with high physical gold price . If gold is an official part of the real economy should be back to make the dollar worthless and would gold disciplinary work on debt-driven nations would.
    Gold on the balance sheet of the ECB is a value that the dollar regime can not afford. The dollar should give the value of the financial industry, not gold.
    The redistribution of gold in proportion to the economies of the world , the dollar suppremacy undo . As long as the gold price can be manipulated, the dollar power will not be broken .

  • rowingboat

    Camp 5 states the gold price can only go up, so when gold falls it is being conspired against

    Take the physical outflows from UK and America in 2013 and compare with the inflows of 2011 and years prior. Take net imports into Switzerland. Clearly there is less buying and divestment occurring by former investors in the West and this is showing up in the national import/export data. Remind me again, who drove gold from $250 to $1900?

    This swing from demand to supply has been violent and dwarfed incremental Chinese import growth in absolute tonnage terms. So the gold price has fallen. Yet there is no or very minimal acknowledgment / quantification of this happening in the gold community. Instead it’s separation of ‘physical’ and ‘paper’ prices, comex manipulation in the face of sky rocketing demand etc.

    • Zhanglan

      I agree with your fist paragraph, uncertain about the second, but cinsider the tgird to be very, very confused. There is strictly limited evidence that available supply has increased – if it had, how come Germany only got back 37 tons in 2013?

      • rowingboat

        Zhanglan, despite the large drop in gold price there is clear evidence that gold is still abundant at prevailing prices… check the commentary from Australia’s Perth Mint, and Bron Suchecki’s blog in particular.

        Regarding my second paragraph there is no dispute. There’s about a 1000 tonne
        increase in net imports into HK/mainland China this year versus 2012, as Koos has demonstrated.

        Yet compare what UK was importing in 2012 and many years prior and the 1500 tonne exodus in 2013. That’s a 2000+ tonne swing from demand to supply. In the case of America the swing will be around 500 tonnes in 2013 vs 2011. The Swiss net imported 1000 tonnes in 2009, yet only around 300 tonnes in 2013.

        The gold community prefers to ignore these facts. Western selling has swamped Chinese buying in 2013.

        • Jim

          I find it very fascinating that you failed to answer his question about the repatriation of Germany’s gold.

          • rowingboat

            What is there to say, other than this is an ongoing process since the reunification of Germany after the cold war ended and when 98% of German gold was held abroad. By 2020, Germany will possess half of the gold it owns. Why are they repatriating slowly over a period of years, around 90 tonnes annually? My personal view is the importance of conveying ongoing confidence and trust between central banks to the public, that the Bundesbank isn’t seen to be appalled by US Fed policies etc. 37 tonnes in 2013 is lower than the average transfer rate but we don’t know when repatriation actually started in the year, and I suspect the rate will be cranked up in future with the logistical processes streamlined. 100% conjecture on my part, so add it to the pile of everyone else’s opinions.

          • Salacious Monk

            The 7-year repatriation is to convey ongoing confidence and trust between central banks? Wonderful! Then why not structure the deal this way:

            1. Germany publicises a plan to repatriate the gold in 7 years.

            2. Then the Fed says “No need for our German friend to wait so long! We can give the gold back to you in 7 days!”

            Since there are numerous “malicious conspiracists” claiming that the German gold has already been dumped by the Fed to support the dollar, the deal as I proposed would be a MUCH BETTER way to demonstrate the trust between central banks to the public. Besides, it could end those “malicious conspiracists” once and for all!

          • 24 carat

            The Germany-US gold repatriation deal is based on the same fundamentals as the Washington Gold Agreement (WAG), later renamed as CBGA. The -Washington- in WAG simply means that Euroland still has to remain loyal to the $-regime (our liberator). Pragmatic Euroland knows it cannot walk alone,…without transatlantic blessings.

            YOU SHALL NOT LET GOLD, PRICE (value) THE ($) CURRENCY !
            That’s why the evolving new gold concept (free floating goldmetal wealth reserve) needs the mighty Chinese backing ! China is the only powerhouse that can challenge the $-standard and the system of floating currencies.
            Cfr. The global nuclear power balance.
            Now it is up to the US to put its $-deficit house in order and activate its economy. That is the globe’s sword of Damocles !

          • Zhanglan

            I have written elsewhere on Koos’ blog and will therefore not repeat at great length, but

            1. In both London http://www.bullionbypost.co.uk/sell-to-us/ and Hong Kong http://www.lpm.hk/eng.buy_gold_detail.ews?buy_gold.ewdid=1738 dealers Offer Gold bullion bars at around 12% premium to spot, but will Bid around 97% of spot for the same bars. There is clearly no pressure to lower the Offer Price in order to maintain retail demand, and the fact that the Bid is firmer than the offer clearly illustrates that – at the retail level – Gold is being ‘pulled’ into Asia, rather than ‘pushed’ by people losing confidence and panic selling in the West

            2. Increasingly frequent backwardation in COMEX futures offers incontrovertible (and quantifiable) proof of shortages in physical metal available for delivery

            3. Although I sense that the fact the Germans called for physical repatriation of their Gold is more significant than the response they received (the Soviet threat collapsed 20+ years ago; what does the Bundesbank know now that it didn’t know then?) the simple fact is that the Gold is not there to be delivered –

            a. When the London Gold Pool collapsed in the1960s the USA used cargo aircraft to fly Gold across the Atlantic. Are logistical capabilities really worse now than they were 50 years ago?

            b. Why 7 years? Why not 7 months, or would 70 years be equally reasonable? I have not yet read reports of China purchasing 2000+ tons of gold in 2013 only to be told they can’t have it – but then, Germany doesn’t hold $1.4 trillion of US T-bonds

            c. Let’s imagine that 7 years is reasonable: pro-rata we would expect 42 tons to be delivered during 2013 – especially if there is such an alleged glut of metal available on the open market – but in fact even this meagre amount has proved to be unavailable and has caused the USA to shake every tree from GLD to COMEX to Mali to Turkey to try to find it. 42 tons is 0.7% of the inventory supposedly held in Fort Knox, and the Feds have been measured and found wanting. The Emperor has No Clothes

            I rest my case.

          • Zhanglan

            I have written elsewhere on Koos’ blog and will therefore not repeat at great length, but

            1. In both London http://www.bullionbypost.co.uk/sell-to-us/ and Hong Kong http://www.lpm.hk/eng.buy_gold_detail.ews?buy_gold.ewdid=1796 dealers Offer Gold bullion bars at around 12% premium to spot, but will Bid around 97% of spot for the same bars. There is clearly no pressure to lower the Offer Price in order to maintain retail demand, and the fact that the Bid is firmer than the Offer clearly illustrates that – at the retail level – Gold is being ‘pulled’ into Asia, rather than ‘pushed’ by people losing confidence and panic selling in the West

            2. Increasingly frequent backwardation in COMEX futures offers incontrovertible (and quantifiable) proof of shortages in physical metal available for delivery

            3. Although I sense that the fact the Germans called for physical repatriation of their Gold is more significant than the response they received (the Soviet threat collapsed 20+ years ago; what does the Bundesbank know now that it didn’t know then?) the inevitable conclusion must surely be that the Gold is simply not there to be delivered

            a. When the London Gold Pool collapsed in the1960s the USA used cargo aircraft to fly Gold across the Atlantic. Are logistical capabilities really worse now than they were 50 years ago?

            b. Why 7 years? Why not 7 months, or would 70 years be equally reasonable? I have not yet read reports of China purchasing 2000+ tons of gold in 2013 only to be told they can’t have it – but then, Germany doesn’t hold $1.4 trillion of US T-bonds

            c. Let’s imagine that 7 years is reasonable: pro-rata we would expect 42 tons to be delivered during 2013 – especially if there is such an alleged glut of metal available on the open market – but in fact even this meagre amount has proved to be unavailable and has caused the USA to shake every tree from GLD to COMEX to Mali to Turkey to try to find it. 42 tons is 0.7% of the inventory supposedly held in Fort Knox, and the Feds have been measured and found wanting. The Emperor has No Clothes

            I rest my case.

          • Gene

            Is it not possible that the Bundesbank is not all that concerned about where it’s gold lies and the repatriation effort was mainly a political response to populist pressure? How do we know the details of this gold repatriation? This operation would necessarily be covert in nature. Can you link any information from German authorities expressing unease about this repatriation thus far?

            I have no clue whether your speculation is correct but my guess is the US still has it’s gold and there is a degree of trust between central banks that may be hard for us to understand. I think going forward credibility will be an important commodity and the CB’s of the world understand this.

          • Zhanglan
          • Gene

            Thanks for the links. As expected there is no indication of Bundesbank unease about the repatriation thus far although the 3 month about face is intriguing. Probably German politicians reacting to popular will and urging the CB to act. I have no wish to argue speculation either so we will just have to watch these events unfold.

          • Zhanglan

            http://news.goldseek.com/GATA/1388937780.php

            * * *

            January 3, 2014

            Dear Mr Schall:

            Thank you for your enquiry.

            At a press conference on the topic of Germany’s gold reserves on 16
            January 2013, Executive Board member Carl-Ludwig Thiele presented the Deutsche Bundesbank’s new storage concept. In addition to the relocation of gold bars, this concept includes, amongst other things, measures to ensure that the specifications of the London Good Delivery (LGD) standard are met. You can find these specifications on Page 17 of the following presentation:

            http://www.bundesbank.de/Redaktion/DE/Downloads/Presse/Publikationen/201

            Storage plan (new)
            ………………… 2012 ……….. 2020
            Frankfurt ……. 31% ………… 50%
            New York ……. 45% ………… 37%
            London ………. 13% ………… 13%
            Paris ………….. 11% ………….. 0%

            Planned relocations:

            — Phased relocation of 300 tonnes of gold from New York to Frankfurt.

            — Phased relocation of 374 tonnes of gold from Paris to Frankfurt.

            — Achieve LGD standard, where this is not already the case.

            You can find the specifications for the London Good Delivery (LGD) standard at the following address:

            http://www.lbma.org.uk/pages/index.cfm?page_id=27.

            In cases where these specifications were not already met, the Bundesbank had these original gold bars melted down and recast in order to meet this standard. This was achieved without any difficulties.

            Please understand that in order to ensure the security of the gold transports and our employees, the Bundesbank is unable to provide you with any further information.

            Yours sincerely,

            DEUTSCHE BUNDESBANK
            Communication
            Wilhelm-Epstein-Strasse 14
            60431 Frankfurt am Main

            Tel.: +49 69 9566×3511 or 3512

            * * *

          • In Gold We Trust

            Do me a favor, please write a guest post for this blog. People need to raed this.

            :)

          • rowingboat

            Abundance and scarcity is a function of price of course. As Keith Weiner demonstrated (in advance by the way) from his weekly analysis of the basis/cobasis for gold, bullion became very abundant near the end of August on the rebound to $1400/oz. $ price has fallen since.

            the commentary on this site is fantastic, the links and information posted here and in Koos’ twitter feed make it a daily must for me. I look forward to further discussion and debate, and reading everyone’s views.

          • Zhanglan

            Actually, whilst I find much of Keith’s analysis compelling, I do not totally accept his cobasis argument, as the “Spot” price he relies upon is also contaminated by leveraged hypothecation, such that it too is a synthesized rate; without knowing what the true “here is my cash now give me my bars” price is, the contango/backwardation equation is at best a directional estimate

        • Gene

          There is a difference between the west selling paper and the east buying physical. Have you noticed the GLD paper waterfall and the 500 tons of physical gold that have exited the fund? I contend that price discovery in the gold market has very little to do with physical demand or availability. When paper fails to deliver physical gold “in size” we will see what physical gold is really worth.

        • tom thumb

          We are still waiting for the Germany reply? After all you stated ” there is clear evidence that gold is still abundant ” surely you can back this statement up with facts.

          • rowingboat

            Just like China, the evidence is in the import and export data. Investors were pulling gold into the West for many years, flows which have since slowed and/or reversed. Bullion not paper and the flows are quantifiable. For more evidence by an insider dealing in the physical market, the Perth Mint’s Bron Suchecki replied to Alex Stanczyk report, link below. I consider what these guys write as complimentary, different perspectives of a large connected market place.

            “I’ve seen a lot of 100% certainty that the fractional bullion banking system is about to blow up, starting in 2008 from the financial crisis. What
            I watch for is bullion banks desperately bidding on our refining output, as I
            said in this post or “just watch Bullion Vault and Gold Money – which are backed by 400oz bars and which deal in that market every day – for reports of difficulties in getting 400oz bars and restrictions on how much gold can be bought, and/or if they start to add on a “special” premium to their spot price.” I’m not seeing that desperation by bullion banks, nor premiums from Bullion Vault or Gold Money on 400oz bars, so at this stage no confirmation.”

            http://goldchat.blogspot.com.au/2013/12/tight-physical-supply.html

          • Alex Stanczyk

            Would like to clarify a few points.

            1. I have never claimed the LBMA fractional reserve system was doomed, on the contrary, the banks, refiners, and security transport companies which comprise the LBMA (the association, it is not an exchange or trade platform as many wrongfully believe) are the backbone system of the global gold trade and I do not really see any set of circumstances which would cause that to change.

            2. I have claimed that physical supply of available gold (float) is tighter than it has ever been in known memory, based on the near 30 years of experience of the head of what may be the largest refinery in Switzerland (yes, this refinery is larger than the Perth Mint, which is absolutely huge, I have seen it in person). Audio interviews with both myself and Jim Rickards on the topic here: http://www.physicalgoldfund.com/podcasts/

            3. I like Bron Suchecki and consider him to be one of the finest analysts the industry has. That said, I think perhaps he is watching the wrong metrics to determine what am talking about. His assumption is that you will see tightness in bids for his own product, or in GoldMoney or BullionVault having trouble sourcing. Why would bullion banks bid on refinery product if they can influence pricing (I did not say control, I said influence), then use that to get gold out of $GLD to meet the balance of flow demand out of china? They can make money shorting GLD in a bearish environment, and probably in the arb spread between west paper and east physical. They dont make money bidding up refinery production. Also, the issue here is flow. What was the annual demand for NEW tonnage for BV and GM? Was it anywhere close to the over 2000 tons delivered into China? It was not, so may not be a good place to measure this.

            4. My theory is, bullion banks are the only entities in the market that have the tools and the view of all aspects of the market to be able to pull off such a massive arbitrage between rapidly diminishing reserves in the west and the demand coming from the east.

            I have just read about an Australian finance professor who did a deep study of COMEX and GLD trades immediately following the London Fix from 2007 to 2012. He finds that trades were roughly 50/50 prior to each fix matching or not matching direction of fix, which is what you would expect. After the call for the fix, but prior to public publishing, trades aligned some 80% with fix within 5 minutes of the call starting, again, before publishing. Whether or not this is being used in what I think is happening, I am not certain, but it would not surprise me (LIBOR, etc, etc, etc), and gives you an example of the tools I am speaking of.

            What I think is happening:

            1. Bullion Banks are using their view and tools to influence COMEX and GLD by shorting with large quantity to scare participants, only to go net long GLD

            2. Redeem shares GLD to get physical gold out of GLD (some 552+ tons), this gold can be used to Arb physical premium to china and act as a “shock absorber” during times of massive physical demand such as 2013, but also to cover other physical obligations (unallocated to allocated demands or delivery?) and restock COMEX if needed (which is what most refer to when looking for pricing) at bargain basement prices on gold.

            I am not going to claim to know if it is China or the US or any other Central Bank trying to influence prices, although history shows central banks have intervened in past, and one could argue certain players do have more of a motive to do so than others.

            I think there is an overall western market sentiment that differs from the east, and this sentiment is causing speculators to be bearish gold, which affects the price of gold. Bullion Banks I think are reading the trend, and piling into it to create momentum which they then use to their advantage to earn profits, not because of a global conspiracy to rule the world (aside from making more money than anyone else).

            In the end, I think the bullion banks will make more profit from the gold bull market than any government or citizens will. I do not think they they have any particular sovereign loyalty, other than to themselves and making massive profits. I think they would work for either the Fed, or the PBOC, and maybe even both at once, if it made them more money.

            “Money has no motherland; financiers are without patriotism and without decency; their sole object is gain.” –Napoleon Bonaparte, 1815

            Motive, Ability, Opportunity.

            Its all there. Happy to review new facts and reserve the right to change my view if the facts warrant such a change.

            I probably wont be replying to this thread, but if you want to discuss with me I am happy to do so on twitter @alexstanczyk

          • rowingboat

            Thanks for taking
            the time to comment so comprehensively Alex

          • rowingboat

            For me the most revealing aspect of Koos’ research (apart from the sheer scale of the SGE deliveries themselves) is the discrepancy with GFMS data, which only measures consumer retail demand. There’s at least an extra 1000 tonnes being delivered by entities/sophisticated
            investors in China that GFMS is unable to measure (not PBOC).

            And this brings me back to the need for analysing the import and export data more widely across the globe because we can’t rely on the GFMS data for the proper demand picture, particularly nontransparent big money purchasers. Who drove gold higher by multiples from 2000? Indian imports in the late 1990s were around 700 tonnes, so their import growth has been less than spectacular. China appears to have only become a major importer from 2011.

            It must have been the West on the back of negative real interest rates, rising budget deficits, sovereign debt crises, and the commodity boom etc. Some of this sophisticated demand made its way into the ETFs sure, but much more would’ve been delivered into other vaults within and without the financial sector, surely?

            What did UK, USA, Switzerland and other Western nations net import from 2000 annually… 1000 tonnes on average, 1500 tonnes? I don’t know but we do know these first three countries collectively turned net exporters in 2013, and in a big way.

  • Cali son bound for Idaho

    Everything is fine! Go back to watching TV sports or American Idol…….

  • Henq

    What about this theory, that hoarding by the public is encouraged for minting in the future? http://www.24hgold.com/english/news-gold-silver-china-gold-china-s-endgame–video.aspx?article=5061267132H11690

    • 24 carat

      This IS the old * GOLDSMIDT * dynamic in reverse ! Bring goldcoins (ounce/gram/milliegram) in circulation for trade settlement, next to modern fiat digits. These gold flows make the goldmetal VALUABLE in competition with hard and soft managed currencies. That’s what all the altercoins are trying to achieve. Buying/selling in altercoin.
      The final purpose is to make goldmetal-value to price the currencies, and not the other way around.
      This exchange principal of goldmetal value for valuable goods exists already : 15 barrils of oil for one ounce of gold, electronically priced though by the $-regime (decades long average of 15) !
      The moment the $-gold redeemability stopped (1971), the dollar currency became totally worthless.Then it was the dollar who mis-priced gold’s value. Mercantilist Asians want to reverse these $-dynamics.

  • Zhanglan

    Manipulation at both a geo-strategic and market level is endemic and has clearly been going on for a very long period of time. To claim that ‘the market’ represents an efficient or transparent price discovery mechanism for clearing imbalances in Supply and Demand is at best naive, and it is surely more than ironic that the London pig circus is known as the “Fix”

    Further evidence, as if it were needed ~

    1. De Gaulle and then d’Estaing sparring with the USA over gold in the 60’s and 70’s leading to Johnson’s and then Nixon’s debasement (of silver coinage and the US dollar respectively)

    2. Saddam Hussain proposing to sell oil for gold ends badly (for Saddam)

    3. Gaddaffi’s proposed Gold African dinar ends badly (for Gadaffi)

    4. JP Morgan leads gold prospecting drive in Afghanistan (Google it)

    5. 144 tons of Libya’s gold disappears after the ‘revolution'(Google it)

    6. Bundesbank calls for 300 tons to be repatriated

    a. Why? What do the Germans know?
    b. Can’t have it! 8 years required, even though it represents less than 1/20th of the Gold supposedly held in Fort Knox
    c. Ends badly ( for Mali, at least, and for small miners in neighbouring Chad)
    d. Anecdotal concerns continue about the use of Tungsten, leading to the 37 tins repatriated so far being re-assayed by neutral 3rd party Swiss refiners

    7. GLD Trust loses 40% of its inventory in 2013, and

    a. This requires professional participants to redeem shares, rather than investors “redeeming for Gold” as popularly reported
    b. Withdrawals continue in London even over the Christmas Holiday period – what is the urgency?
    c. SLV inventories increase in 2013, even though the Silvef price dropped further than Gold, suggesting that the depletion of London gold inventories was not price-related
    d. 1200 ton discrepancy noted in 2013 inventory reported by Bank of England
    e. Anecdotal evidence from Swiss refiners of supply constraints, Bloomberg reporting on empty vaults

    8. Repeated out-of-hours price smackdowns using massive round-number clips of COMEX futures; from my professional experience of financial markets, I am unable to accept the notions that either

    a. This was physical metal being sold, which drove the Futures price down (London was asleep at the time)
    b. This was caused (in April 2013) by a temporary collapse in liquidity in the August 2014 futures contract
    c. This was an isolated or unintended “fat finger” event

    9. JP Morgan taking delivery if 96+% of the December 2013 COMEX futures contract (this is surely a market which has been “cornered” with total impunity)

    10. Out of sequence, but saving the best for last – the quite blatant London Pool mechanism (which failed)

    My settled conclusion is that this is not evidence of market manipukation, but of a “front” operation every bit as elaborate as “The Sting” – we, as investors, are almost certainly not the intended targets, but are merely ‘collateral damage’

    • In Gold We Trust

      Thanks again for your comment.

      ..on the 1200 tons that left the BOE vaults. This is clearly reported:

    • R.A. Brown

      In a word: WOW!

    • Jim

      Excellent post, —

      “Gold is money, everything else is credit.”– J.P. Morgan

      • In Gold We Trust

        That’s not what he said..

    • AnnaAllen

      Great post, thanks!

  • http://www.economic-undertow.com/ steve_from_virginia

    Xhaoxue is wrong about the euro: the EU was an economic weakling in the late 1990s most of its members had to lie about their financial position to gain entry for themselves … this includes Germany. The euro has never been backed by gold. The euro was part of the European strategy to pander to OPEC, it was an energy hedge (and it has failed).

    US w/ a hard currency would never have been able to import millions of barrels of petroleum per day to simply waste, the country would have run out of gold first. Meanwhile, the US has run out of gold as it has been leased away … (see German gold repatriation request).

  • Chris

    I am wondering if the drop in Hk China imports is due to the 2000 ton Shanghai Vault opening. Will be interesting to see if tonnage is in the 70’s again next month. A sudden drop in demand, especially with CNY coming, when prices are falling would be counter intuitive. Given articles recently about real prices in China being in the 1500’s, I would also not be surprised if PRC people are even more so than before going to HK to buy their gold at a fraction over Comex spot which if true should therefore be reflected again in the large re-export to HK from China amount that occurred in November.
    If you were the Chinese, it would be a great head fake to the world that HK numbers dropped consecutively for 3 or 4 moths as the Shanghai Vault comes on line. That would be a great way to accumulate another 1000 tonnes while everyone scratches their heads trying to figure it out.

  • 24 carat

    What does the dollar’s dominance exactly means !? The dollar, being the $-system and the $-regime behind it.
    The entire world had to accept that the $-regime is dictating what one’s wealth is and isn’t. The dollar’s wealth reserve status.
    The evolving new gold story isn’t accepting this scam any longer. Sun Zhaoxue is cryptically stating that -Gold the Metal- will say what your real wealth is. Therefore the entire global gold wealth reserve must and shall REVALUE as to reflect (represent) the entire global real existing wealth, without the destruction of the running modern fiat regime. Impossible to predict how long it still takes to re-distribute gold-wealth-reserve amongst the global gold wealth advocates. It also took many decades to construct the global $-pseudo wealth regime.
    The real VALUE of above & underground gold must be equal to the global net worth. This process will take quite some time to find out.First the entire world must realize what exactly is not representing real wealth, anymore (the financial industry’s mis-representation/falsification of wealth).
    Gold’s re-valuation has still to catch up enormously with 100 years of de-valuations and the present falsifications of what is now represented/percepted as pseudo stores of wealth ! The 100 years growing fiat bubbles have linked all real wealth wit DEBT still to be considered/accepted as solvable credit by all the useful idiots, who are forced to continue playing that absurd game. Three billion mercantilist Asians will NEVER play this merchants-of-debt game. That’s why the gold-wealth-reserve will continue to flow to all those who still recognise meritocracy for what it really is.

  • Sharknado

    America doesn’t have any gold…those two grifters, Bill Clinton and Larry Summers sold it all…not to mention the tungsten gold they sold to China.

  • Tasneem Malik

    A New World Order will arise when a false messiah assumes his position of authority in Israel. By then, Zionist bankers will have accumulated most of the worlds gold. Remember the Golden Rule ? Whoever has all the Gold rules.

    • Skeptical Investor

      Are “Zionist bankers” the same as “Jewish bankers”. Since the Chinese appear to be the fastest gold accumulators currently, are you expecting the Chinese to convert to Judaism? Perhaps the new messiah will be a Chinese Jew? Perhaps you will start to make sense at some future magical time?

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