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China Becomes World’s Larest Gold Buyer - Buys 93.5 Tonnes Of Gold Coins / Bars in Q1 - Gold Ownership Rising From Miniscule Levels

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From GoldCore

China Becomes World’s Larest Gold Buyer - Buys 93.5 Tonnes of Gold Coins / Bars in Q1 - Gold Ownership Rising From Miniscule Levels

Gold and silver are higher again today with the debt laden dollar, euro and yen all being sold. News that China has become the world’s largest buyer of gold bullion and has seen investment demand double continues to reverberate in the markets and may have contributed to this morning’s strength.

Both gold and silver are marginally higher for the week and after last week’s gain appear to have regained their poise and are consolidating after the recent sell off.

Gold Investment Demand in China
Courtesy of the Wall Street Journal

China becoming the world’s largest gold buying nation is very important. While informed analysts have been saying that this would inevitably happen much of the commentary and most of the public remain completely unaware of the huge implications that Chinese gold demand has for the gold market. 

Indeed, there continues to be a huge level of ignorance regarding the scale and sustainability of China’s, but also India’s and other large and increasingly wealthy Asian countries, demand for gold and silver bullion. 

Chinese investors bought 93.5 tonnes of gold coins and bars in the first quarter. China produced 340 metric tons of gold last year and consumption was about 700 tonnes, leaving a gap of nearly 360 tonnes.

Demand is forecast to increase due to the growing wealth of the Chinese middle class and deepening inflation in China.

What is most important and rarely covered is the fact that gold ownership by the Chinese public remains minuscule. Especially when compared to other Asian countries such as Vietnam and India.

Gold ownership is rising from a very, very low base which means that the investment demand and demand for an inflation hedge from 1.3 billion increasingly wealthy Chinese people is more than sustainable.

The not realized important fact that the people of China were banned from owning gold bullion from 1950 to 2003, means that the per capita consumption of over 1.3 billion people is rising from a tiny base.

Cross Currency Rates (Including Gold and Silver)

While the recent increase in Chinese demand has been very significant, it is likely to continue and the demand is sustainable due to Chairman’s Mao’s half-century gold ownership ban.
Should the Chinese economy crash as some predict, demand could fall. However, sharp declines in Chinese equity and property markets and a depreciation of the yuan would likely lead to significant safe haven demand for gold.

Indeed, should high inflation continue in the Chinese economy or should higher inflation or even stagflation occur than Chinese demand could even increase.
Chinese demand alone likely puts a floor under the gold market at $1,450/oz.

The inflation adjusted high of $2,400/oz remains very likely given Chinese and Asian demand alone for gold bullion.
Many market participants and non gold and silver experts tend to focus on the daily fluctuations and “noise” of the market and not see the “big picture” major change in the fundamental supply and demand situation in the gold and silver bullion markets – particularly due to investment and central bank demand from China and the rest of an increasingly powerful and wealthy Asia.
It is worth noting that the People’s Bank of China’s gold reserves are very small when compared to those of the U.S. and indebted European nations. China appears to be quietly accumulating gold bullion reserves. As was the case previously, they will not announce their gold purchases in order to ensure they accumulate sizeable reserves at more competitive prices.

The recent bear raid on silver is being challenged by silver’s very favourable supply and demand fundamentals.

The Comex Registered Silver Bullion Inventory Data shows that silver bullion inventories are now at record lows (see chart).

Speculative paper players on the COMEX may have been successful in again manipulating prices lower but as ever the physical reality of supply and demand for the underlying commodity, asset and currency will dictate prices in the medium and long term.

Comex Silver Bullion Inventory Data/Registered


(Financial Times) --Chinese set new standard in buying gold

(Wall Street Journal) -- China Is Now Top Gold Bug

(Bloomberg) -- Gold May Gain on Europe Debt Concern, Inflation, Survey Shows

(Reuters) -- PRECIOUS-Gold regains strength on bargain hunting,silver steadies

(Bloomberg) -- Gold Advances as Europe Financial Turmoil, Dollar Weakness Spur Purchases

(Bloomberg) -- Gold Imports by China May Rise After Demand Gains to Record, Council Says


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Fri, 05/20/2011 - 07:51 | 1294931 Michael Victory
Fri, 05/20/2011 - 07:54 | 1294943 oh_bama
oh_bama's picture


Who is the STUPID "ELEPHANT"?  Who LOSES MOST of his BETS?

Fri, 05/20/2011 - 11:00 | 1295415 mrgneiss
mrgneiss's picture

I didn't know PIMCO'S largest holding was gold; it seems to have been conveniently ignored by the media over here:

Fri, 05/20/2011 - 07:51 | 1294935 achmachat
achmachat's picture

you guys realize that this is "just" the official numbers?

It makes you wonder just how much gold has been bought through backdoor operations.

edit: anybody knows where all that "Gordon Brown Gold" went?

Fri, 05/20/2011 - 08:18 | 1294971 tmosley
tmosley's picture

GDL, from what I hear.  I don't know the veracity of that story, though.

Fri, 05/20/2011 - 09:29 | 1295111 topcallingtroll
topcallingtroll's picture

It went mostly to MENA

Fri, 05/20/2011 - 07:53 | 1294939 falak pema
falak pema's picture

I think that the chinese are digging a tunnel to Fort Knox. Only ZH now knows this thing as of today...act accordingly...the tunnel will be completed in November 2012.

Fri, 05/20/2011 - 07:57 | 1294946 Sam Clemons
Sam Clemons's picture

I'm guessing they will be disappointed.

Fri, 05/20/2011 - 08:54 | 1295039 falak pema
falak pema's picture

"Lenin is said to have declared that the best way to destroy the capitalist system was to debauch the currency. By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. By this method they not only confiscate, but they confiscate arbitrarily; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security but [also] at confidence in the equity of the existing distribution of wealth."

"...By combining a popular hatred of the class of entrepreneurs with the blow already given to social security by the violent and arbitrary disturbance of contract….governments are fast rendering impossible a continuance of the social and economic order of the nineteenth century."
-- John Maynard Keynes

Thanks SC : interesting historical quotes and material for thought!

Fri, 05/20/2011 - 07:50 | 1294940 Racer
Racer's picture

"ECB's Noyer says ECB has kept inflation expectations firmly anchored"


Excuse me? When I see all my essentials going up 30 to 50% I am very scared!

What planet is he on?

Fri, 05/20/2011 - 08:04 | 1294961 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

"What planet is he on?"

- He's on planet 'save ass'.

Fri, 05/20/2011 - 07:53 | 1294944 Sean7k
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Makes you wonder if China is bankrolling JPM and HSBC for keeping the prices down. 

The separation in paper and physical continues. 

SLV lost 7 MILLION ounces yesterday. Pretty easy if you're just moving certificates, but the real item? 

Send in the trolls, there used to be trolls...

Fri, 05/20/2011 - 08:34 | 1294996 Urban Redneck
Urban Redneck's picture

7 million ounces = 240 tons

The average armoured car has a capacity of around 10 tons (US or being generous with UK chassis specs).

So to move 7 million ounces from vault A to B would require probably 24 truck trips (one side of the LBMA vault to another would be a different issue, but there should a paper trail for 7 million ounces that can be tracked)

If not, then someone should hire some of the investigators in the booming Chinese fraud business to hang out in London and do some vault watching.

Fri, 05/20/2011 - 10:33 | 1295306 Bay of Pigs
Bay of Pigs's picture

That clearly shows the extent of probable FRAUD in SLV. There is no other explanation for something like that. If there is, let's here it, because all the silver experts I follow sure as hell can't come up with anything else that explains legitimate movement of physical metal in amounts like that.

Fri, 05/20/2011 - 08:01 | 1294948 earnulf
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Let's do some quick math with small numbers (compared to the US Debt anyway).   China, 1.3 Billion people.  India, 1 Billion people.   Together, they account for 2.3 Billion people vs 300 million in the US. (6 to 1 ratio?).  So if the same percentage of people there decide to physically own as they do here (usually less than 1 percent), it is still 6x the demand that the US generates.   

You would think that would be positive.....if supply and demand were really in charge.

Fri, 05/20/2011 - 08:02 | 1294953 Robslob
Robslob's picture

You can no longer Praise the Chinese Economy and bash Gold at the same time...

Fri, 05/20/2011 - 08:00 | 1294955 Al Gorerhythm
Al Gorerhythm's picture

I'm going to post a reply to Texan gunslinger, from an old post.

by Texas Gunslinger 
on Fri, 05/20/2011 - 02:45

Sorry, but that's just nonsense! 

The only reason you're paying a premium is because it's easy for the retail coin stores to jack the small, naive, easily duped, retail investor for profit.  The "pitch" of imminent currency collapse, or death by inflation, or JP Morgue, or "price doesn't matter" are fantastic sales pitches and smokescreens to jack the dumb money for profit.  Let's be honest, paranoid doomers are great customers because they're the most emotional; emotion is the salesperson's best friend. When you see a huge difference between physical and paper, it means you're getting jacked.  

Even Sprott admitted yesterday (or day before?) on that Max Keiser interview posted on ZeroHedge that he could buy all the physical he wanted at spot price.  

Paper = physical, at least in terms of price for the real players in the silver market.

First reply.:

by Al Gorerhythm 
on Fri, 05/20/2011 - 06:01

Weren't you on the other day saying that your two main mentors are your coin dealer and your hope dealer (pastor)? I thought that that was where you divided your time, unless he is one and the same person.

Can you ever make a post that is backed by researched analysis not just opinionated conjecture or assumptions? Your posts are a waste of time and argumentative jibes.

Edit: I can't recall Sprott saying that he could buy plenty of it at spot. From my take he said he had a hard time finding it. I am about to watch it again. 

Follow up:

by Al Gorerhythm 
on Fri, 05/20/2011 - 07:33

"Even Sprott admitted yesterday (or day before?) on that Max Keiser interview posted on ZeroHedge that he could buy all the physical he wanted at spot price."  

That is a huge mislead from you Tex. Your post is obviously antagonistic toward the retail investor. You claim that retail investors are being Jacked at the checkout because the nasty coin shop operator or bullion dealer is ripping investors off by charging a premium over spot spot. Can you please advise us where we can conveniently buy silver at spot?

Back to Mr. Sprott. Nowhere in that interview does he say that there are ample supplies at spot. It took him 6 weeks to get his silver and he stated elwhere that the silver was freshly poured, not a scratch on them. He was stating that his company can buy at spot. Nothing more.

Further more, he stated that he doesn't trust the numbers from the traditional (two) major suppliers of those supply figures. They are unreliable and poppycock. How can you trust numbers that show that supply meets exactly demand, year on year, down to the ounce? Silver is the only commodity on the planet that has had a ablance for years. Not one ounce over demand was mined!

Silver demand is a world wide phenomenon, encluding China and India and 2.5 million extra investors on the planet than the last bull.

Little guys don't move the market but they do save themselves from the mismanagement (if you could call it that) of fiat currencies.

This past price bust was about saving the short speculators. Micro managed to start the decline in after hours trading and then slam the price with 5 margin hikes.  

Ratio should be 16:1 using his research.

Describes using simple math that the Comex is overselling silver with paper promises to deliver. If 3% of traders demanded delivery, the Comex would default.

States clearly that there is simply not a surplus of silver.


His last statement was that new investors at the margin would exacerbate the SHORTAGE that we already have.

You either missed all of this other evidence or cherry-picked his statement that he could buy at spot and used it as the establishment of your rant (thesis).

I am not able to give you the benefit of the doubt over this as your previous post have been written in the same vein.

I call bullshit and confirm your tag of Troll.


Fri, 05/20/2011 - 08:33 | 1294992 tmosley
tmosley's picture

You know, I realize that the reason Ebay prices are so high is because it is an entirely secondary market.  NO-ONE wants to part with their silver, except miners and paper holders (IFF the paper vehicle actually has silver).

Fri, 05/20/2011 - 09:12 | 1295080 TheTmfreak
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Other than what seems to be coin dealers, it seems most sell because "they have to." In otherwords cashing in their savings for immediate needs (an extremely reasonable action).

Fri, 05/20/2011 - 17:03 | 1296763 Al Gorerhythm
Al Gorerhythm's picture

That should read 2.5 billion potential investors.

Fri, 05/20/2011 - 08:03 | 1294959 Sean7k
Sean7k's picture

Totally unrelated, but what if all those dark Blade Runneresque stories of future society have been made to condition the population to accept a rather bleak and ugly future? Perhaps all the scify writers are really working for the Elites and conducting a massive conditioning program in collaboration with hollywood?

When was the last time you saw a movie about a successful anarcho-capitalist society that lived in freedom, peace and prosperity?

If they are lacking excitement, the changeover would provide some gore and guts. 


Fri, 05/20/2011 - 08:23 | 1294981 Alex Kintner
Alex Kintner's picture

A variation on that theme: What if the sci-fi writers are trying to expose the Elites by warning us of the future. It's funny how many Prophecies of "1984" have come true -- even as some robo-program at the NSA reads this comment.

Fri, 05/20/2011 - 08:35 | 1295000 BobPaulson
BobPaulson's picture

A lot of Orwell's predictions were true in 1948 when he wrote it. I think he was using hyperbole to drive the point home. Perhaps he didn't even imagine it would get as bad as it is now.

Fri, 05/20/2011 - 08:53 | 1295036 BigDuke6
BigDuke6's picture

i suspect he really didn't think he'd be so accurate so quickly.

he was essentially 15 years late - maybe less.

no one understood politicians and the predatory class like orwell.

Fri, 05/20/2011 - 08:45 | 1295023 ibjamming
ibjamming's picture

It's funny...up until "civil rights" took over everything...the future was always seen as being something wonderful.  Going into the 70s, the view changed to dark and forbidding. 

Are they related?  Did everyone see the hopelessness that "political correctness" and "equality at all cost" would do to society?  I do now!  We're killing ourselves JUST to give the weak an advantage.  Women shouldn't be "working"...they should be raising their children and forming neighborhood support groups.  The problem is...FORCED integration has made us all strangers in our own neighborhood.  Strangers who want nothing to do with "those people".  So, we stay inside and watch DWTS.  There's more...much more...

Fri, 05/20/2011 - 08:50 | 1295038 tmosley
tmosley's picture

1984 was written in 1948.  Brave New World was 1932.

Dystopian literature has been steady.  There was no change with "civil rights".  Nice try on blaming the darkies, though.

Fri, 05/20/2011 - 09:04 | 1295058 ibjamming
ibjamming's picture

You may be right...but not about the darkies!  If we HAD sent them back after the Civil War...this country would be a LOT better off.  I can't stand the bastards...

Fri, 05/20/2011 - 09:26 | 1295107 topcallingtroll
topcallingtroll's picture

Yeah it would have solved a lot of problems and prevented a civil war if Madison and Jefferson had got them all shipped to Liberia.

However that was not to be our future and we have to make the best of it. We are the most diverse nation on earth. Hope it works out.

Fri, 05/20/2011 - 09:30 | 1295113 tmosley
tmosley's picture

Not really.  We would have been better off if the North hadn't chosen to oppress the South during Reconstruction (or better yet, if they had just allowed them to secede).

We would not have had the hideous racism and collectivism that lead to real tragedy, like this:

Fri, 05/20/2011 - 09:21 | 1295093 falak pema
falak pema's picture


My philosophy, in essence, is the concept of man as a heroic being, with his own happiness as the moral purpose of his life, with productive achievement as his noblest activity, and reason as his only absolute.

—Ayn Rand, Atlas Shrugged[4]


The anti-collectivist ethic that is the basis of American conservative ideology.

What happened to the social contract in this vision?

And what happens if those who sing this song are in fact Oligarchs that don't adhere to "free markets" but to "manipulated markets", that maximize subjective 'productive achievement' at the expense of general good, as defined by all the philosophers since Plato?

Ayn Rand does not believe in the dialectics of individual vs general good. There is no trade off as far as she is concerned. So Hitler was right to seek his 'objective truth' in his vision of things à la Mein Kampf.

Atlas Shrugged is Humanity debased, so that one man can live his dream, whatever the cost. I love this quintessential narcissistic utopia. And conversely its rejection of an alternative vision as dystopia. Now that is totalitarian down to a T!


Fri, 05/20/2011 - 09:32 | 1295124 tmosley
tmosley's picture

What the fuck are you even talking about?  Are you saying that those who preach the gospel of Atlas Shrugged don't follow it's principles in real life, and therefore the principles set forth in the book are bad?

What are you smoking?

Here's a hint:  the oligarchs of this world are NOT following Rand's philosophy.  They are playing the role of the VILLAINS of her book.  WE must strive to be the heroes.  It's not that hard.

Fri, 05/20/2011 - 09:54 | 1295181 Vlad Tepid
Vlad Tepid's picture

Chill out, tmos.  Just do what I do and skip over everything felak petemamdnendisnai writes.  It's mostly gibberish anyway and makes the threads go down smoother.  BTW keep up the good fight against that Gunslinger idiot. Maybe we can flush him out.

Fri, 05/20/2011 - 10:13 | 1295234 tmosley
tmosley's picture

Don't mistake my use of curse words for anger. I use them in contempt. I could berate fools like what's his face above all day. And do, when I have time. Sadly, not today.

Fri, 05/20/2011 - 10:20 | 1295252 falak pema
falak pema's picture

I know but my point is that this is now become a game of mirrors on both sides :

Its Charybdis and Scylla. The socialist ideal is a totalitarian prison in REALITY and the Any Rand ideal is an OLIGARCHICAL prison in REALITY. 

I'm saying don't JUNK reality : the real political systems around us. That's all.

Her political philosophy is also totally utopic, IMHO, but that is a separate subject. Its about philosophy, not about belief systems which by definition are subjective. I don't junk her reasoning, I just say its an INCOMPLETE philosophic expression of human experience. But that is normal. Not every body is the Aristotle of his age.

Hey Tepid, any time you want to discuss I'm available...

Fri, 05/20/2011 - 10:19 | 1295272 tmosley
tmosley's picture

Yes, yes. Clean is dirty. Good is evil. Up is down. Reality doesn't exist. Ignore the man behind the curtain.

Fri, 05/20/2011 - 10:24 | 1295277 falak pema
falak pema's picture

Reality doesn't exist??? Wow, now that is news...It exists, and can be interpreted differently. That's debate. There are no absolute truths. But then nobody should wear blinkers.

Fri, 05/20/2011 - 10:26 | 1295282 tmosley
tmosley's picture

You talk EXACTLY like a Randian villain.

I don't mean similarly, but EXACTLY.

No wonder you hate her so much. Her work points out your own extreme inadequacies.

Fri, 05/20/2011 - 11:51 | 1295641 LudwigVon
LudwigVon's picture

May God bless you Steel.

Fri, 05/20/2011 - 10:33 | 1295262 falak pema
falak pema's picture

I don't know what a Randian villain is. I don't hate her but I do disagree with her ideology. If disagreement is villainy then I plead guilty. Pray enlighten me how her work highlights my 'inadequacies'.

Fri, 05/20/2011 - 10:52 | 1295391 tmosley
tmosley's picture

Hahaha, you haven't even read Atlas Shrugged. No wonder you are so ignorant of Rand.

Specifically, you are Dr. Floyd Ferris, author of "Why Do You Think You Think?"

You claim there is no such thing as objective reality, as he did, and that all is up for debate, as he did. Such "post-modern" thinking is nothing short of disgusting, and its infiltration into academia promises to utterly destroy science in this country.

Fri, 05/20/2011 - 11:28 | 1295490 falak pema
falak pema's picture

No kidding, "nothing short of disgusting", "objective reality", "destroy science" now that is absolutist thinking like a religious prelate who believes in divine dogma. So you belong to which church? Ayn Rand's congregation of objective, scientific, logical, free market , invisible handed, totally innovative, unendingly productive conclave of entrepreneurs who save science from "post modern" thinking. 

I don't believe in post modern thinking. But I don't accept any school of dogma, as its totally contrary to human history and the evolutionary process of our collective intelligence. Sorry, no perfect markets, no super men, and no delusional belief that one's own personal happiness as mortal, is the uber-alles mantra for self fulfillment.

Hippocrates started a great humanist tradition that was about looking out to healing others, social values not personal navel gazing; it founded medicine, was personified by a work ethic, was in no way or form about personal happiness. The other guy society. It is the basis of civilization.

Atlas shrugged does not address this issue. It is not socially oriented like the teachings of Jesus, Socrates and Hippocrates. None of these were post modern. Sorry no dice.

Fri, 05/20/2011 - 14:32 | 1295628 Bay of Pigs
Bay of Pigs's picture

Maybe read the book again. You missed some points.

Fri, 05/20/2011 - 11:50 | 1295637 Bay of Pigs
Bay of Pigs's picture

Okay, I've had enough, you get junked for general douchebaginess.

Fri, 05/20/2011 - 11:51 | 1295643 falak pema
falak pema's picture

could you repeat that please?

Fri, 05/20/2011 - 12:34 | 1295846 Sean7k
Sean7k's picture


Please define "American Conservative Ideology". If you look at their actions, they are Statists, Fabian Socialists of the greatest dedication.

The Social Contract was coopted by the Elites to create governments funded by the majority for the benefit of the few.

Plato was an aristocrat that always assumed the existence of a slave class to cater to the needs of the rich. Democracy was for the wealthy.

You decry the utopia, but anarcho-capitalists would never call the free market a utopia and Ayn Rand was not an anarcho-capitalist. Rand remained wedded to the illusion of "public goods". One of the most ridiculous economic concepts ever promoted by Samuelson. 

The question is not whether free market capitalism is perfect, the question is: is it preferable to the existing bankocracy? Is it more efficient in determining value? Does it promote a more level playing field where entrpreneurs can make rational judgements on profit and loss? Does it result in a system where you can actually OWN your home?

The current system of socialism and central banking control of finance is the utimate form of totalitarianism. Anarcho-Capitalism is better than that on its' worse day.


Fri, 05/20/2011 - 17:09 | 1296765 falak pema
falak pema's picture

I don't junk History. I don't junk : Jefferson, Lincoln, T R, FDR. All these men strengthened the idea of liberty compatible with the state. The whole debate in western society is about this fine dividing line in all areas : social, economic, philosophic and judicial. But the fundamental assumption is that both sides, statists and libertarians, are SINCERE in their arguments. As society has got more complex the role of government has increased to manage this complexity fairly. So we all agree to this 'arbitrage', we all agree to its economic counter part : free markets and government regulation. What has now failed in US society is the corruption and the lack of sincerity, which makes all true debate impossible. As its all false mirrors and manipulated markets as crony, corrupt government. This does not mean that one side of the ideological line is more efficient than the other. To make the debate efficient we have to go back to honest governance. Period.

In fact what you call central banking and socialism, is in my book Free enterprise gone mad and hiding in the garb of central government and social governance. Its all false flags! Its the plutocrats of your libertarian ideology (Reaganomics) that have now become surrogtes of Plutocrats. Out of greed and corruption.

Fri, 05/20/2011 - 15:55 | 1296589 TGR
TGR's picture

Great googles!

Fri, 05/20/2011 - 09:12 | 1295074 Strike Back
Strike Back's picture

If you think the next step is going to be a lily white futuristic 20XX version of 1955, you are delusional.  That model is dying in front of your eyes.  The people that want that version of society are weak, old-money aristocracy hell bent on preserving their cheeseburger, bourbon, T.V. and prozac lifestyles but no matter how far south you run, progress is going to catch you.  You sound a lot like the other white nationals on here, saying that an integrated society leads to a society of isolated strangers.  You're probably just isolating yourself and blaming your lack of social skills or open mindedness on... whoever.  I don't know where you are, but here in Northern Virginia, I see people from everywhere getting along fine and doing business, exploring different and better ways to live.  One of the only good things in this bearucractic - police/state shithole.

Fri, 05/20/2011 - 09:27 | 1295103 TheTmfreak
TheTmfreak's picture

From somebody else who is living in Northern Virginia I ask, where the hell are you living?

The "integration" of ethnicities in Northern Virginia is awful beyond awful. Its extremely segregated and its common to bash Mexicans and el salvadorians. Or claim "they are taking over." Or how about the blacks in South East DC?

Sure everyone is living hunky doory out in Ashburn or Great Falls but other places, yeah right. Go tell that to the people living in Sterling where "MS13" has moved in and dropped housing prices. Or Manassas or Herndon (all of which used to be "nice" suburban places until the last decade). Today I'd say that nobody accepts those places are great integrated communities, rather "little el salvador."

I'm not defending that guy's statements by any stretch. I do believe that we have become an EXTREMELY isolated and separated society. Do I think it is ethnicity related? Eh no. That I think has some part of it, but I don't think ethnicity has driven us to, say for example, stare at our cell phones all day everyday rather than interacting with those around us. (Look at everyone around you all day everyday to discover that one). There is no question that ethnicities can integrate together into a community, but I think it takes time to overcome perceived differences, (regardless of what they are). Sometimes it occurs just too fast for some.

edit: In one final question. I hate the terms "progressing." That assumes a linear way of movement and that we are moving "forward" with "progression." Such a simple minded way of viewing the world. "Hey man we are progressing here."  Really? I'd say the US is far from "progressing." Particularly since every perceived difference of opinion (regardless of topic) will label you as racist (if you are white).

Fri, 05/20/2011 - 09:44 | 1295143 tarsubil
tarsubil's picture

I have to agree. Is there integration in Old Town? Segregation is so stark in the DC area that you can go from Whitey Night Club Party Town to Whitey Needs Bulletproof Vest Zone by crossing the street.

Fri, 05/20/2011 - 12:39 | 1295831 Strike Back
Strike Back's picture

Falls Church, I am surrounded by both rich and poor.  Not Sterling, but not Great Falls either. 

Your third paragraph down, half-way through that is what I am saying and that is what I see.  Not just here but many places I go.  Of course I see problems, but I doubt that they are the norm, or if they are, that they will remain the norm in perpetuity.  The solution to the problems of integration in any case is not to seek refuge in days gone by that I highly doubt even existed.  The solution is the situation you describe where peoples use their respective strengths with each other to maximize productivity and is what I consider "progress."  I realize that the term is now dirty on this forum, but it exists.

The problem I have with the white nationalists that post on this forum is that they blame the current situation on racial diversity or on one racial subgroup.  I suspect that this is either flat out ignorance or a ploy to distract from the real issues at hand: the utter failure of central planning in the United States.  I think we should work that one out before we tackle the age old tribal urges to segregate.  I suspect that if the root issue was improved, the urge to segregate, draw lines, and reduce cooperation would subside as well.

I detest the fact that differences of opinion will get white people labeled "racist" nowadays.  It leads to a very confined and dishonest exchange. I don't think racial differences can just be canvassed over by the slogan "there is no race!" in any constructive manner. The slogan hammers people into not dealing with racial issues.  I think in the context of race the marketplace of ideas should prevail.

Fri, 05/20/2011 - 12:37 | 1295849 Strike Back
Strike Back's picture


Fri, 05/20/2011 - 09:39 | 1295133 francis_sawyer
francis_sawyer's picture

"I don't know where you are, but here in Northern Virginia, I see people from everywhere getting along fine and doing business, exploring different and better ways to live"


So does that mean nobody is kung-fu fighting in NOVA? Bully for you. I suppose it's easy to get along fine and do business when you live in an area that's PHAT with high paying federal government jobs that adhere to affirmative action standards...


Fri, 05/20/2011 - 09:46 | 1295153 tmosley
tmosley's picture

Eh?  No, that makes it worse, which is why DC is a crime ridden nutsack.

Fri, 05/20/2011 - 12:47 | 1295879 Strike Back
Strike Back's picture

Yeah, we're all Kung Fu fighting, eating Kazakh cuisine and fucking fine Brazilian women. 

You're point about being able to live this lavish lifestyle when people aren't in economic catastrophe mode is my point.  Before jumping to conclusions on how drastic racial differences are and how impossible it is to get over them, you should focus your energies on getting your money back from the fed, decentralizing financial control, and getting back to a sound currency.  Then we'll see how big of a "problem" race is.


Fri, 05/20/2011 - 08:10 | 1294968 YHC-FTSE
YHC-FTSE's picture

"Larest"? :)

I reckon the new HKMex is going to be a huge potential when it has some products. Be interesting to compare figures with CME next year.

Fri, 05/20/2011 - 08:38 | 1295002 topcallingtroll
topcallingtroll's picture

Just be sure to use PEARL and you can even download your trading strategies on to it.

They promise not to peek!

Fri, 05/20/2011 - 08:15 | 1294972 overmedicatedun...
overmedicatedundersexed's picture

Chinese proverbs: " man who has silver coins never go hungry" Man who has gold coins has many friends" " Man who holds paper needs to wipe ass"

Fri, 05/20/2011 - 08:25 | 1294985 Robslob
Robslob's picture

overmed...Thank You...I needed that!

Fri, 05/20/2011 - 08:41 | 1294997 topcallingtroll
topcallingtroll's picture

So.....China is buying 5% of annual gold production?

Someday, maybe, they will be ready for big boy pants.


Fri, 05/20/2011 - 08:42 | 1295017 topcallingtroll
topcallingtroll's picture

20 percent would be impressive on an annualized basis if they keep it up.

Fri, 05/20/2011 - 08:55 | 1295042 tmosley
tmosley's picture

Only likely to increase.  They all see what is happening with their currency, and are doing all they can to avoid holding it.  They'll buy all the gold the world will sell to them.

Fri, 05/20/2011 - 08:55 | 1295049 Quintus
Quintus's picture

Given the massive pyramid of paper metal that the Wall St Boyz have constructed on top of a fairly small actual physical production, I'd say taking 5% out of real physical supply will have a fairly significant impact on their manipulations.  Leverage works both ways.

Fri, 05/20/2011 - 09:46 | 1295147 tarsubil
tarsubil's picture

Too bad they don't have any bernanke bucks to blow...

Fri, 05/20/2011 - 08:49 | 1295004 BlackholeDivestment
BlackholeDivestment's picture

...a river of debt

''they'' call it currency, Labor turns to Gold

Black Swans in the water

The Great Wal Mart of China, for whom the market bell tolls

Zero interest tax from Mr. Shadow

...and I hear Dimon has a new Rolls

Fri, 05/20/2011 - 08:48 | 1295033 Infinite QE
Infinite QE's picture

Ameritards lining up to buy that piece of shit LinkedIn while the Chinese are lining up to buy gold. Guess who will rule the world?

Fri, 05/20/2011 - 09:16 | 1295084 JFK.4PREZ
JFK.4PREZ's picture


my grandmother tipped me off to Diane Rehm's hour long discussion on going back to the gold standard....

most ZHers will chringe at the guests' commentary and start yelling at their computer.  Whereas others may get a chuckle from the idiocy:  'I pretty sure the reason we got off the gold standard is because european countries were demanding gold post-WWII. Also- i dont know what decade these gold conspiracy theororists want to go back to but they need to move on - they're being silly' (paraphrased).  

the more clowns out there, the more advantageous it is for us! 

Fri, 05/20/2011 - 17:04 | 1296768 DosZap
DosZap's picture


Partly true, but the fact of the matter is we dd not have the gold to pay out.

Too bad the Allies did not pay back the USA for War reaparations, and we just forgave the debts.

We were so kind.Frigging idiots.

Fri, 05/20/2011 - 08:53 | 1295044 Spigot
Spigot's picture

The Chinese government told its citizens to start buying gold...and they did. Once they have bought all physical they can...its gonna be a far different world in which we live.

Fri, 05/20/2011 - 17:08 | 1296770 DosZap
DosZap's picture


Do not forget Silver, they are snarfing it up as fast as possible also.

Fri, 05/20/2011 - 08:55 | 1295048 bankrupt JPM bu...
bankrupt JPM buy silver's picture

I thought gold was a bubble.  I will long LNKD today...I think it will hit $250, my broker at Goldman said it would.  I love AMZN and NFLX too.  I only invest in things that trade 80 times their earnings.  I'm stuck in the 90's.

Fri, 05/20/2011 - 09:01 | 1295055 overmedicatedun...
overmedicatedundersexed's picture

ib we need- NEED a new vision of ourselves and society..does anyone on ZH think the Mulatto or S Palin will provide it??


justice demands payment..the corrupt gov and banks will work to avoid justice..the people suffer until they find a way to provide justice to those who live above us all. until then dust in the mouths of the hungry- decay in the economic systems-despair in the hearts of the citizens.

Fri, 05/20/2011 - 09:29 | 1295061 Franken_Stein
Franken_Stein's picture


The meme of putting chips and tracking devices into people is a very old one.

Also the meme of connecting all people to a global network and have them live in an virtual reality.


Here in Germany the first time I read about such a possible future was back in the 80s, where we would read Soviet science fiction novels.

Back in the day i didn't know anything about Isaac Asimov (Jewish, "I robot") or Fritz Lang (Jewish, "Metropolis").


In this Russian science fiction novel they talked about a planet discovered by a group of kosmonaut planetary explorers, which at first glance would look like a total desert, void of any life, except of armies of automated robot tanks with ray cannons, guided by some artificial intelligence, that would fight each other, seemingly without goal.


When they landed down there, they would discover a pyramid like structure near the equator, which would turn out to be an entrance to a giant underground installation.

And there they would find thousands of people in a ring around the whole of the equator, thousands of kilometers in length, lying next to each other in boxes in a kind of coma, with their brains connected to a computer grid.

Some boxes would still be empty.

One of the astronauts would lay down in one of those empty boxes and put on such a hood on his head and would see the real world vanish in front of his eyes and find himself in an artificial, virtual world, where he would encounter the virtual representations of all the other connected people.

They would tell him how the whole thing had started and unfolded in an unforeseen and evil way, they would tell him about the past of their once thriving civilization.

That this originally was a form of entertainment, which gradually had transformed into a lifestyle and an addiction and a nightmare, where more and more people would want to get into the underground equatoral ring.

No one would want to work anymore and instead would spend all his efforts on getting connected, to becmoe part of the chosen few.

Then they started to run out of memory space and the original perfect humanoid-like avatars would be stripped of their level of detail in order to save memory space for the other new arriving avatars.

Until the virtual representation of a connected person would be a mere couloured sphere with two eyes.

Which when I read it first made me laugh, haha. :-)


Later then, after the fall of the Berlin Wall, I had access to books of Wiliam Gibson, an American Sci-Fi writer, who wrote novels like "Neuromancer", "Biochips" and of course "Johnny Mnemonic", which all talked about connecting people with their brain and a so-called Sim-Stim interface (a jack in your head) and a "desk" (a modem) to a computer network and where you would try to infiltrate bank computer accounts, protected by "black ice" (firewall).


But before that I watched a nece BBC series called "The Tripods" which was a "War of the Worlds" adaption made by the BBC in 1984.

At that time I did not know War of the worlds so I thought this is a genuine BBC series.

We could watch it, because it was aired on West German TV which could also be received in East Germany.


Here it is:


The funny thing about the Tripods is, that it is impossible for a Tripod to walk, since

in order to lift one leg you have to balance all the weight on the other two legs, so you would constantly have to waver and wobble while walking.


Three legs is a rather nonsensical construction, make it 4 ! Haha.

So it should have been the "Quadpods" instead.


But apart from that little flaw, the series was brilliant and I was standing in awe.


Fri, 05/20/2011 - 09:31 | 1295123 falak pema
falak pema's picture

Like your avatar is supposed to become...all you get when you manipulate is to be manipulated in return. Jihad and Crusade are mirror opposites. I guess men will never walk out of their existential dilemma of Achilles being only himself if he has Hector in front of him. That sums it all. We are our own worst enemy. Utopia must ALWAYS lead to Dystopia. The only way to avoid it is to accept reality, shoddy reality. Like the Berlin Wall, now the wall of Gaza, or of Tex-Mex or wherever they will want to build the next one.

Fri, 05/20/2011 - 09:04 | 1295066 g speed
g speed's picture

I remember when the Japs bought the ice rink in downtown NYC-- the word then was "if you don't get it now there won't be any left"---- I know--it's different this time--

Fri, 05/20/2011 - 09:49 | 1295165 tmosley
tmosley's picture

No, it was different last time.  Japan, like America, was ruled by voodoo economists, and as such could never REALLY move ahead.  China, not so much.  In fact, with Japan collapsing, the US, which has subscribed to the same policies, will not be different.

People really need to learn how to properly use that sentiment indicator.

Fri, 05/20/2011 - 09:51 | 1295169 chinaboy
chinaboy's picture

People don't understand how inflation affected China. Not many people pay attention to official inflation statistics. They know how much inflation is by their own experience.  Further more, Chinese stock market is just a bad news. Adding up everything, buying bars is just so natural.

I guess the same story is true for Vietnam and India.


Fri, 05/20/2011 - 09:53 | 1295179 bobola
bobola's picture

The folks who claim there's no shortage of physical silver may be right.

Last month I went to a local coin dealer and bought 30 silver eagles.

They had boxes full of recently purchased old jewelry waiting to be melted down.

The higher the price, the more physical silver becomes available.

Fri, 05/20/2011 - 10:05 | 1295206 Vlad Tepid
Vlad Tepid's picture

Bravo for personal observation.  But without perspective it's meaningless.  The meth addicts robbing grandma for their next fix will soon run out of secret compartments to rummage through.  What I'm saying is the recycling of scrap has been declining precipitously over the last few years because more is being hoarded, and less is available to be found laying around the house.  Why pay melting fees when you can just sit on the stuff as it appreciates in value.  No Bobola, there is a huge shortage and we'll see it here shortly...I think I hear the tsunami warnings.  Next time you're at your coin dealer ask them what they PAY for ASEs and my guess is it will be more than a few percentage points over spot.

Fri, 05/20/2011 - 10:11 | 1295224 narapoiddyslexia
narapoiddyslexia's picture

Right now, at 10:10 am EST, APMEX is paying 5.37% over spot for 2010 ASE's.

Fri, 05/20/2011 - 10:12 | 1295245 tmosley
tmosley's picture

What was the price last month? What is the price now?

Price suppression is what creates shortages. Go check again, and you are likely to find the scrap drawer is empty.

Fri, 05/20/2011 - 10:10 | 1295218 achmachat
achmachat's picture

*looking at today's raid*

i wish i had some more cash lying around to buy some more shiny metal.

Fri, 05/20/2011 - 10:20 | 1295271 scatterbrains
scatterbrains's picture


Fri, 05/20/2011 - 10:25 | 1295286 achmachat
achmachat's picture


Fri, 05/20/2011 - 10:19 | 1295273 scatterbrains
scatterbrains's picture

Someone help me through this one..  If we assume that the country is being run by pirates, which I do, then I'm pretty sure if they need to make a quick grab for all the gold they will shut down all physical and paper trading of the same and nationalize all of it. With that in mind, what's the safest method to flash purchase pm's or related mining assets etc through a contemporary online broker ? (I have some physical but would like to go all in if it's possible as the ship USA bow disappears below the surface) I'm assuming it should be in one of the emerging markets, an area that is friends enough with the USA that it will not get plundered in any concurrent world wars, but at the same time fall out of any USA national gold grab.  Anyone have any thoughts ? I was thinking something like  a sprott pm fund but I wonder if Canada would cave in such  an event?

Fri, 05/20/2011 - 10:25 | 1295289 achmachat
achmachat's picture

I don't know how it is over there, but here in these parts of Europe, it's pretty easy to buy gold. You don't even pay VAT tax. Until now there hasn't been any real waiting times for delivery, if you stay under 100oz or so of gold.

Silver is just as easy to buy, but right now, in Germany, be prepared to wait 3 weeks for your rounds.

Fri, 05/20/2011 - 11:39 | 1295589 YHC-FTSE
YHC-FTSE's picture

Gold is still pretty easy if you're willing to part with a few points above spot, but you have to pay 20% VAT on silver in the UK. 

Fri, 05/20/2011 - 10:57 | 1295414 Federal Reserf
Federal Reserf's picture

The only way to protect it from "pirates" is to bury it and cut the map up into 50 pieces.


It is hard to imagine the USS Bernanktic's stern rising high into the air, rudder in full view, without considering the fact that most of the other yachts, large and small will be unable to cast off their lines and will subsequently be pulled down to visit OBL.

Fri, 05/20/2011 - 11:16 | 1295489 scatterbrains
scatterbrains's picture

I agree with you and I hold some physical but I'm also a trader and have capital tied up with my broker/bank etc. My question is basicaly is there a  "SAFE" way to flash buy into the precious metals sector, free from any govt. interference if they try to grab everything and shut trading down.

Fri, 05/20/2011 - 11:46 | 1295614 Federal Reserf
Federal Reserf's picture

I have the same problem and need a solid game plan for digital fiat accounts when the going gets weird.  I do have a little PSLV but who knows....

Fri, 05/20/2011 - 10:44 | 1295360 Kobe Beef
Kobe Beef's picture

Gold is very "Lare" in China. Soon to be more.


hahaha beef

Fri, 05/20/2011 - 10:51 | 1295372 Federal Reserf
Federal Reserf's picture

The Chinese & the bankgangsters are now practicing modern alchemy. I guess I'll look at turning some more paper into "cheaper" gold.

Fri, 05/20/2011 - 12:54 | 1295927 PulauHantu29
PulauHantu29's picture

Why are they buying these "barbaric metals?"

Didn't Buffet and his side kick say only crazies buy that stuff.

Fri, 05/20/2011 - 13:09 | 1295970 Federal Reserf
Federal Reserf's picture

He who holds the gold makes the rules.


It makes it easier to separate the serfs from their "barbaric relics" when you convince them they are crazies for holding it.  

Fri, 05/20/2011 - 13:08 | 1295964 gwar5
gwar5's picture

I'm rooting for China. I'm holding FRNs, too, and no different than China. I do what they do.

China's retail population increased their gold purchases 10% YOY at the official behest of the government, so the gold buying is accelerating. That's an directed army of 1.3 billion people increasing their gold purchases in a country with a savings rate that is already over 30%.

And the government is a big buyer too.

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