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China's Gold Reserves At Least 2.5 Times Higher Than Reported, ‘De-Americanisation’ Continues
Today’s AM fix was USD 1,341.75, EUR 971.79 and GBP 827.58 per ounce.
Yesterday’s AM fix was USD 1,336.25, EUR 968.79 and GBP 825.76 per ounce.
Gold climbed $12.10 or 0.91% yesterday, closing at $1,345.40/oz. Silver inched up $0.11 or 0.49% closing at $22.67. Platinum rose $15.45 or 1.1% to $1,445.75/oz, while palladium fell $0.53 or 0.1% to $743.47/oz.
Gold Krugerrands (1 oz) are trading at $1,406.48 or premiums between 4.75% and 5.5% and Gold Kilo Bars (1 kilo) are trading at $44,451.89 or premiums between 3% and 3.5%. Premiums are steady.

Bloomberg Industries - Precious Metal Mining
Gold dipped below its three-week high in London on profit taking after a 2% gain this week, which put gold on course for a second week of higher prices. Gold closed above the 50-day moving average and this in conjunction with two weekly higher closes is bullish technically.
Gold’s gains yesterday came due to increasing concerns that the Federal Reserve will maintain the pace of unprecedented monetary stimulus and debasement.
Gold is on track for its first yearly drop in over 13 years, as speculators sold gold on the COMEX and some investors became nervous of the recent price falls.
Gold is probably at a cyclical bottom and CPM sees gold prices rising sharply in 2016-2023, CPM Group’s Jeffrey Christian said in a speech in Toronto on Wednesday.
The call is interesting as CPM have been notoriously bearish on gold in recent years - throughout much of the 11 year bull market.
CPM Group sees the gold price at $1,240-$1,380/oz for “most of the next few months,” CPM managing partner Jeffrey Christian said. Gold may trade in a $1,240- to $1,500/oz range for “the next couple of years”.
Gold in USD - Year To Day and 50 Day Moving Average - Bloomberg
Gold may jump 7.5% or $100 to $1,450/oz by year end if prices break out of a pennant formation, according to technical analysis by Paul Kavanaugh of Future Path Trading as seen on Bloomberg.
The chart above shows gold trading in a “pennant flag,” when the upper and lower trend lines for prices meet to form a triangle. The lower level is $1,251, and the upper is $1,434, Kavanaugh said.
“Prices are clearly trying to move higher, and a close above the 50-day moving average means we could see some strength,” Kavanaugh said.
Comments from state backed Xinhua that call for a "de-Americanised world" and a proposal to consider a new international reserve currency to replace the dollar mark a key event for gold prices.
The official Xinhua News Agency and the voice of the Chinese government, offered a not so subtle, highly critical commentary on October 14 regarding the U.S.’ appalling fiscal, monetary and political situation as it stands today.
While the Chinese echoed the notion of a "super-sovereign reserve currency" before, their statement is more important as the U.S. continues to struggle to reach agreements on debt ceiling talks and future monetary policy actions.
“It is perhaps a good time for the befuddled world to start considering building a de-Americanised world” said the important op-ed.

Bloomberg Industries - Precious Metal Mining
Key among its proposals: the creation of a new international reserve currency to replace the present reliance on the U.S. dollar as reserve currency. The article suggested that this is a necessary step to prevent American bumbling and profligacy from further afflicting the world.
“The world is still crawling its way out of an economic disaster thanks to the voracious Wall Street elites.”
“The cyclical stagnation in Washington for a viable bipartisan solution over a federal budget and an approval for raising the debt ceiling has again left many nations’ tremendous dollar assets in jeopardy and the international community highly agonized,” says Xinhua.
The Chinese have for a long number of years expressed concerns about the direction Washington, led by Wall Street, is leading the world financial system and the global economy.
In March 2009, the governor of the People’s Bank of China, Zhou Xiaochuan, called for the creation of a new reserve currency, albeit in less forthright language. The world needs a new “super-sovereign reserve currency” to replace the current reliance on the dollar, Zhou wrote in a paper published on the People’s Bank of China’s website.
Zhou Xiaochuan is still China’s central bank governor.
The goal is to “create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run.”
This sounds like he may be referring to gold, as gold is an “international reserve currency that is disconnected from individual nations” and has remained “stable in the long run.”
Toppling the dollar isn’t enough today, however: “Several cornerstones should be laid to underpin a de-Americanised world,” explains the Xinhua piece.

Bloomberg Industries - Precious Metal Mining
Along with a greater role for developing-market economies in both the World Bank and International Monetary Fund, “the authority of the United Nations in handling global hot-spot issues has to be recognized. That means no one has the right to wage any form of military action against others without a UN mandate.”
“A self-serving Washington has abused its superpower status and introduced even more chaos into the world by shifting financial risks overseas, instigating regional tensions amid territorial disputes, and fighting unwarranted wars under the cover of outright lies,” the commentary continues.
“Such alarming days when the destinies of others are in the hands of a hypocritical nation have to be terminated, and a new world order should be put in place, according to which all nations, big or small, poor or rich, can have their key interests respected and protected on an equal footing.”
Since the early 2000s, those positive on gold have rightly suggested that excessive money printing by the Federal Reserve would lead to a devaluation of the world's reserve currency as inflation picks up and hampers the currency.
Those more concerned about the dollar’s fate has warned of a currency collapse and serious inflation.
While the notion of the dollar losing its status as the world's reserve currency had appeared muted for some time given the lack of alternatives, it is now gaining credence.
A deeper look into China's gold holdings warrants attention (see charts).
Its last reported gold holdings in April 2009 were 1,054 metric tons. After adjusting for net imports from Hong Kong and domestic output, the figure is closer to 5,086 metric tons. If one were to take away gold uses for jewelry, industrial, and other categories and only add implied bar demand to central bank holdings, the figure is likely closer to 2,710 metric tons according to Bloomberg Industries’ Andrew Cosgrove and Kenneth Hoffman.
In just 10 years, China’s gold holdings could catch up to the U.S., based on adjusted Chinese consumption for jewelry, industrial and other uses and using implied bar demand as the primary driver of incremental central bank additions (see chart).

Bloomberg Industries - Precious Metal Mining
At current run rates, China is on pace to add 622 metric tons of bars to its central bank holdings this year (380 mt in 2012). Given the low gold price, growing reserves in 2014 above this year's levels appears achievable.
Gold will benefit from the continuing move away from the dollar as the world's reserve currency as some form of a gold-backed currency emerges.
China's call for "de-Americanization" is likely just a posturing maneuver. A large-scale sale of China's U.S. Treasury holdings would likely cause a dramatic decline in the dollar, while increasing rates. This would cripple the U.S. economy and dent export demand for Chinese products.
This therefore, is the “nuclear option” for the Chinese government and one that they will be keen to avoid. They will only adopt this position if forced to in extreme circumstances, such as a U.S. default or extreme debasement of the dollar.
Already, the Chinese have stopped accumulating dollars - preferring safer currencies, infrastructure, hard assets and commodities and of course gold. Even a small amount of Chinese selling could lead to substantial dollar weakness and much higher bond yields plummeting the U.S. into another recession.
The smart money, including the Chinese people and the People’s Bank of China, is concerned about currency debasement and continue to accumulate physical gold for the long term.
The dumb money continues to not understand the ramifications of dollar currency debasement and the De-Americanising world and continues to see gold as a trade or a mere speculation rather than the essential safe haven asset that it is.
Gold is heading for the first annual decline since 2000.
The Chinese have lustily greeted gold’s 19% drop this year by continuing to buy record amounts of gold. They know the price drop has created a gift for physical buyers globally.
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There's always the primary answer to thwart the PRC - military action towards countries that care to deal with them. African ones are especially vulnerable given their China-compatible despotic nature. Remove them, install a more Western/US-friendly government
Where military action is not directly possible, back efforts that make it a living PITA to associate with the PRC.
"Gold is probably at a cyclical bottom and CPM sees gold prices rising sharply in2016-2023"
Sez you and your crystal ball?
I'm sensing an impending Executive Order regarding Gold ownership and/or transactions.
It wont do any good...it would have to be an executive on the world.
Like China TPTB in the US should hope its people do have gold and silver for when the shit hits the fan, rather than worthless paper...else there will be civil chaos.
Are they so desperate now?
Who is the Real Fraud - Andrew Maguire or Jeffrey Christian?
The ongoing war between the corrupt financial system and people still standing for the real human values will include all form of deception and treachery, we will judge all the involved by their deeds and not just words. http://sufiy.blogspot.co.uk/2013/10/who-is-real-fraud-andrew-maguire-or.html#
Judging by the M.O. of the (not really) Federal (with no) Reserve and their elephant-jackass sock puppets as pathological liars & thieves, and considering publicly available information, I suspect that:
(1) The Rubin gang during the Klinton/Hitlery years likely removed the real gold held as U.S. sovereign reserves and for other cuntries and replaced it with the gold-plated tungsten bars they ordered, leaving the vaults devoid of any real gold. Never audited, of course, by a complicit CONgress that looks the other ways like a referee on TV wrestling.
(2) The real gold formerly in U.S. custody was "leased" to the bullion banks and sold into the market, along with tons of gold robbed from Khadafi & others, suppressing the gold price to maintain the perceived value of the FeRN as global reserve currency.
(3) The Chinques have secured much of this gold, buying over 1,000 tons annually through Hong Kong in recent years, while also keeping the 400+ tons mined domestically each year as the world's largest gold producer.
(4) The patient, secretive Chinques, announce in 2008 that their gold reserves are really over 1,000 tons, not the 600 tons reported since 2001, and have reported no change at all through 2013 despite (3).
You figure the Chinques have accumulated at least 4,000 tons of gold while the United State_ has none, plus owes thousands of tons to the hapless Krauts & other cuntries.
I'm sensing an impending Executive Order regarding Gold ownership and/or transactions.
If Obama doesn't do it before 2016, Hillary will after then.
On advice from the Treasury and FED of course.
It's HITLERY, Hitlery Rotten, who will do it if Obomber, the Kenyan Usurper, doesn't start the looting first.
For the Chinese, the question is, "Is inscrutable, or transparency the virtue?" Those Chinese would want our financial media to know exactly what they're doing with gold, asset purchases and their holdings of US Treasuries.
For the Americans, the question is, "Is whether to trust in the Fed or fear the inscrutable Chinese?" Ben, Janet and Barack are so much smarter than us and they love use. Why worry?
I like the part where it says, "Already, the Chinese have stopped accumulating dollars - preferring safer currencies...". Wish someone would tell me which are the safer currencies. I want some! All currencies are just fiat today.
There's always going to be a reserve currency - it just won't be the USD pretty soon. It's not a matter of which existing one will be chosen. None of them will. They're going to have to make up a new one. The question is what currency is best to hold until the conversion.
Chinese answer:
1. Gold
2. Property
3. Any other fiat besides the USD
The Yuan is excluded from that list on purpose. Fiat is never a bad thing if you're printing it.
"Already, the Chinese have stopped accumulating dollars - preferring safer currencies" - I wish someone would tell me which currency is safer. I want some! They are all bad since they are all still fiat.
Ryan Puplava: Gone Fishing For Basic Materials
Ryan Puplava has written a very good article on sector rotation and its timing. It is time for the investors crowd to move into Basic Materials sector, which is still lagging the performance of other high flying stocks. His observations are confirmed by the breakout this week in Gold and Silver markets. Don Coxe was talking about turn around in commodities in August and FCX has never looked back on the cart below. Chinese groups bidding now for Las Bambas copper project in Peru shows the real state of the market, when China implements its long term state level to securestrategic commodities for its growth and diversify from US Dollar denominated assets. http://sufiy.blogspot.co.uk/2013/10/ryan-puplava-gone-fishing-for-basic.html#
Got Gold?
The really dumb money chases bonds and low cap rate RE and yield stocks..
Of Course!!! It's a WORLD OF DEBT!!! See Music Video below, "WORLD OF DEBT":
https://www.youtube.com/watch?v=99xsqxzJnXs
Yeah if you believe the US has REALLY 8800 tons of gold, I got news for ya.
I would dare bet there is at least 8800 tons here in the states, but we all know it sure as fuck don't belong to the US.
You may be right, friend, but as Germany is learning - possession is 9/10s of the law...
...ooooo we know it's really an act of war not to give you back your gold, but let's count our carrier battle groups. You go first, Germany...
Tried to find out just how much gold the US holds for other nations a few months ago and couldn't find the info.
I did learn a HUGE number of nations shipped their gold to the US during WWII for 'safekeeping.'
I'd say if Germany can't get its gold back, what chance the Phillipines?
I'd say the US still has a supply of gold...from other jurisdictions and we will be keeping it.
Only gold is money - all else is credit; and I believe the plan is a global gold backing of fiat, and EVERY currency devalues against gold over a crazy long weekend.
So get some sweet debt for real assets, and add one once of gold for every 15K in debt; look the dealer in the eye and say, 'Let it ride!'
Ultimately the world is about trade. The USA will have to (eventually) come to the table able to trade wealth for wealth.
This 40 year period of insanity is ending and will be a source of amusement and scandal to those who review it in a hundred years.
1. make perishable consumers toys.
2. exchange them for usd
3. exchange usd for gold and other real assets
4. do this for as long as it can be done.
5. ....?
5. Colonize the still indebted nations, and move the shit-hole slave-labour factories to Amerika
Double Post
Police recordings of Greek and foreign journalists for the Skouries gold mine case in Greece directed to criminalize activists
http://failedevolution.blogspot.gr/2013/10/police-recordings-of-greek-an...
"A large-scale sale of China's U.S. Treasury holdings would likely cause a dramatic decline in the dollar, while increasing rates. This would cripple the U.S. economy and dent export demand for Chinese products."
So instead, the Chinese keep selling real goods to the Americans for Monopoly money (ie dollars). When will the Chinese government wake up and realize that they don't need to sell to Americans?
Peter Schiff example: five Chinese people and 1 American are dropped on an island. Everyone has a job, first Chinese person: fishing, second Chinese person: hunting, 3rd Chinese person: gathering nuts and berries, fourth Chinese person: gathering firewood, fifth Chinese person: cooking.
The American's job? Eating! The American eats almost all the food, and only leaves enough for the remaining Chinese people to have the strength to keep doing their jobs. What would the Chinese do if the American was kicked off the Island? Wouldn't they all lose their jobs? NO! They would all get to eat their own food and would have to work less. Kick the fat-ass American off the island!
Thing you are forgetting is that almost all the "real goods" that chinese are sending to USA are going to be in a landfill in a short time, while the things they buy with dollars are going to have the same value until we invent a way to travel to a new planet. Still there is a good side, maybe the chinese masters are going to be more kind than the present ones.
the four chinese exchanging their labour for for one americans piece of the island, until they own all of the island.
"In just 10 years, China’s gold holdings could catch up to the U.S."
That's if the U.S. has the gold. Wonder if even the U.S. Treasury actually knows how much is really there. Funny how Germany can't get their's back yet. Someday it will become known and given the track record of the U.S. Govt., this may go down as the biggest scheme in history.
I'm starting to think uncle sam's vault's been empty since 1971 ...
Not sayin' it ain't empty, just reminded me of this quote:
In response to a question during congressional testimony on whether the U.S. should sell some of its 8,138 tonnes of gold, Alan Greenspan responded:
"This was debated in the U.S. in 1976. The conclusion was we should hold our gold. Gold still represents the ultimate form of payment in the world. Germany in 1944 could buy materials during the war only with gold. Fiat money in extremis is accepted by nobody, gold is always accepted.”
- Alan Greenspan, Testimony before the U.S House Banking Committee, May 20, 1999. http://www.secinfo.com/dMxdz.617.htm
There will be a financial accident, followed by a swift decline in the value of the Dollar; perhaps a formal devaluation series.
Isn't phys @ 2400 U$D the same thing as devaluation?
@ $3150 gold, a gram could be exchanged for a new $100 bill, even up.
Fair trade?
This article is confusing: on the one hand it claims that China wants to move towards a gold standard and de-Americanize, on the other it says that this is the nuclear option and will not be used as China has too much invested in T bills and need the US market. I agree with both points but they are contradictory. What is the middle path, then? China continues to move towards a global currency but supports the $US in the meantime? Do they let it drift down slowly but steadily? I guess that is the game plan...if so then gold should steadily go up as should the price of commodities..........
The nuclear option was selling already accumulated Tbills, nothing to do with gold, per say.
It sounds like their thinking is to de-Americanize without killing the dollar, just getting off the drug to a more international reserve currency.
Next week b/s interesting for miners as well as the bullion; to see whether Au can hold 1350.
I'm looking forward to taking a single silver eagle down to the tax collector to pay my taxes and getting change back.
Gotta make a quick stop at thecoin store.
They won't credit your account with more than a single dollar for that Eagle ...
See, says right on it - One Dollar
Think I'm some kinda idiot, don'cha.
$2400? Calling for price predictions in these FUBAR'd and manipulated markets is madness. There is no way to predict the time when PM's go parabolic. It is obvious TA went out the window with gold and silver a long time ago.
Right. Shit, I'm as pro gold as anyone else here but all those "technical indicators" don't mean DICK. And Gold Kore should know better, but still dishes out the same crap technical charts and predictions.
I was referring to Sprotts $2400 call above. Great way to damage your credibility much like Sinclair, Turk and others have already done.
A lot of people in the industry are talking about tHe big Surprise: China announcement of 5k t of Gold:
Western Central Banks Suppressing Price of Gold As China Preparing for the Demise of the Dollar
We continue to investigate the recent manipulations in Gold market and building piece by piece our big picture with the ongoing groundbreaking geopolitical processes. Bill Murthy from GATA and Alasdar Macleod are sharing their deep knowledge of the Gold market and industry with us today. http://sufiy.blogspot.co.uk/2013/10/western-central-banks-suppressing-price.html#
Eric Sprott: "Gold And China To Dominate The World." GLD, MUX, TNR.v, GDX
"Eric Sprott is very bold with his call for Gold at $2400 next year. He stands his ground and continues to talk about overwhelming demand for physical Gold from China. According to Eric, investing in the right Gold and Silver equities provides the opportunity of a life time for wealth creation now. Now after the Debt Ceiling can is kicked down the road for a few weeks without resolving anything, investors will be back to the analysis of the real economic situation. We can forget about Taper until the next year at least with the looming circus entertainment Debt Ceiling Increase 2.0. Default is avoided, but the damage is done. We are very positively surprised by the amount of US Dollar negative articles in the mass media these days. The story about the End of the Reserve Currency of Choice - US Dollar is making its way to the surface now. Last week US Dollar has printed the closing below the all important 80.00 level and is now below the 200MA. Gold on its part is in the break out mode, finally and has painted the set of very interesting charts."
I hope Eric Sprott is right with his prediction, but of course he's "talking his book".
He talked the same book in 2002, its a good read.
Ive bought all i can...my trade imbalance wont allow any moar
"The smart money, including the Chinese people and the People’s Bank of China, is concerned about currency debasement and continue to accumulate physical gold for the long term."
The dumb money chases stocks, muni bonds, IPhones, Kardasian's apparel line, tickets to American Idol contests.
I would suggest that 8,000 Tons in the US is more a case of "And Gold equivalents" than a physical reality. The substantial amounts of Gold "Leased" through the BB's, in part to suppress the physical price, was snapped up by, and is now in, China.
And, let's face it, it isn't coming back again even if that bridge in Brooklyn comes on the market again...
Inside every Chinee is a frustrated American trying to get out.
-Col Whazizneme,,Full Metal Jacket