Chinese Gold Buying Stampede

It seems the longer the Federal Reserve and its representative bullion banks keep a manipulative lid on the price of gold using paper gold naked shorts, the more physical gold the Chinese buy:

We can see elevated gold purchases on wholesale level (SGE withdrawals) of late, rapidly being sold to end consumers in the shops at the moment. China Gate News Channel reported on January 3rd a “stampede phenomenon” in a shopping mall in Beijing, were gold was sold at a rate of 400,000 yuan per minute (Bullionstar.com)

On the Shanghai Gold Exchange itself, another 59 tonnes were withdrawn last week (Bullionstar.com).  That makes a total of 374 tonnes YTD, which is up 17% year over year.  Please note:   This does not take into account the amount of gold being accumulated by China’s Central Bank, The Peoples Bank of China.   The PBOC is the only entity in China that is not required to source its gold from the SGE.   Here’s a snapshot of the of the massive gold accumulation going on in China (source:  goldchartsrus.com):

SGE

It is highly probable that China’s gold accumulation, including whatever amount the PBOC is taking down, exceeds the annual global mine supply. While the Fed/US Government maintains a tight policy of using paper gold to suppress the natural market price, the eastern hemisphere continues to gorge on cheap gold. By the time the mainstream in the west wakes up to what is going on, it will be too late.

While everyone is currently worried about what will happen to the euro and the EU if Greece defaults on its debt, one has to wonder what will happen when the west – specifically the Fed/bullion banks – defaults on its massive paper/leased/hypothecated gold short position, the size of which dwarfs the amount of outstanding sovereign Greek debt…

6 thoughts on “Chinese Gold Buying Stampede

  1. On the basis that the Chinese may monetize bullion, based on using weight as the unit of account and not using it to back the Yuan, as some speculate, the USA and China could have an interesting global relationship. It could prove to be a new marriage between the real-time measure (USD) and the weight (bullion). A massive gold based payment processor where the USA controls the digital distribution could be just over the horizon. The converting price peg of “fiat to weight” conversion gives the FED control of the transactional turnstiles. No wonder the Chinese have been allowed such good buying opportunity ……. with the reciprocation of “don’t touch the price peg status” …. or else !

  2. I hope we’ll get more transparency with the new fix in London next month. The gold trading in the COMEX is a joke to say the least. From my point of view it’s a scam and they don’t even give a damn crap to hide it.

  3. Yesterday was the Chinese New Year, where everyone gives gifts to each other, the most popular of which is physical gold. The manipulation of the precious metals market has become fairly well known in the global financial sphere.
    The misinformation, misdirection and false statistics put out by the MSM financial ‘talking heads’ however, is less well known and is much more incipient in its effects.

    Koos Jansen’s newest article “Koos Jansen VS WGC/GFMS/CPM Update”

    http://www.bullionstar.com/blog/koos-jansen/koos-jansen-vs-wgcgfmscpm-update/

    Koos takes these “mouth pieces” to task in an in depth, beautifully written and presented article, complete with charts. The comment section is equally fascinating, in that both Bron Sucheki (Perth Mint) and Jeffrey Christian CPM) join in the discussion, attempting to defend GFMS and their flawed report.

    Well worth the time Dave, maybe some weekend reading. Is Bron finally showing his ‘true’ colors?

    1. Wow. Thanks for the kink. Great work there by Koos Jansen methodically destroying the ridiculous claims of Jeff “100 to 1” Christian and forcing Bron “double agent” Sucheki to repeatedly back down and admit that his objections aren’t much in the big picture.

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