"The Chinese Don't Want Dollars Anymore, They Want Gold" - London's Gold Vaults Are Empty: This Is Why

Tyler Durden's picture

Today gold slid under $1200 per ounce, dropping to a level not seen in three years. Judging by the price action one would think that gold is not only overflowing from precious metal vaults everywhere, but can be found thrown away on the street, where nobody even bothers to pick it up. One would be wrong. In fact, as Bloomberg's Ken Goldman reports, "you could walk into a vault in London and they were packed to the rafter with gold, and the gold would trade from me to you to somebody else. You could walk into these vaults today and they are virtually empty. All that gold has been transferred out of London, 26 million ounces...." To find out where it has gone and why it is never coming back, watch the clip below (spoiler alert: listen for the line: "the Chinese don't want US dollars anymore, they want gold").

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Buck Johnson's picture

He told half the truth and then had to tell a twisted story that defy's logic.  China is buying up all the gold and they don't matter how much it drops from manipulation because they know something that many don't.  The Chinese know that the dollar will soon be kaput along with a few other currencies so in their mind the Trillions of dollars in Greenbacks is essentially monopoly money.  So they are buying strategic resources and such with soon to be fake money.  And when it collapses and they try to find out what type of new reserve currency will be used, China will want to have the major corner on as much of the resources as possible. 


So when they make a new reserve currency, they will most definitely have gold as part of the basket of resources to be used for every unit of that currency.  China knows that all countries will try to put a resource in the basket that they have plenty off and it would defeat the purpose of a reserve currency.  They know that the big countries won't go for that but they will go for gold and oil and silver and platinum in the basket.

FreedomGuy's picture

I think the Chinese have been reading ZeroHedge.

Kirk2NCC1701's picture

If they have been reading ZH, then they'd know that
Gold + BTC = USD_killer
(not end of Dollar, but end of its status as the Global Reserve Currency).

To date, about 10.5 M Btc of the total 21 M have been mined. Imagine if they backed it by more than the "Good faith of the Free Market", and also backed it by some of these 26 M oz. of gold.

TruthInSunshine's picture

As counterintuitive as it may seem, big USD bull is about to stampede over all currencies.

The RBI has been the first big emerging market central bank to recognize the inevitability of this and prepare for it, rather than try to swim upstream against the very strong current.

All emerging market economies, and especially those that are more intensely net export reliant, will have to rapidly debase their currencies on a relative basis against King Dollar or literally wither away in the years ahead.

This isn't a moral equation but a mathematical one. Much higher western consumption, and especially that in the U.S. and the wealthier EU nations, is the only hope to cure what ails the global economy at this point.

The now 10 year old commodity bull market is about to take a giant dump as well.

FreedomGuy's picture

Actually, what you say makes lots of sense. China has a practically infinite internal demand for goods and services it could exploit and does to some extent. The problem is that when you run an export economy and purposely debase your currency your goods and production costs are priced for export. Essentially, your own people cannot afford your own products.

China is letting it's currency slowly appreciate but who knows the real price at any given time? I suspect the huge gold buys are part of the end game.

dark pools of soros's picture

and these things switch..  america will sit with britain on the imperialist old folk bench



caShOnlY's picture

All emerging market economies, and especially those that are more intensely net export reliant, will have to rapidly debase their currencies on a relative basis against King Dollar or literally wither away in the years ahead.

 that statement presumes the old paradigm "america is the worlds greatest consumer" doesn't it?  it also presumes the credit donkey nation is still allowed to consume on paper debt promises.  I think the "world" is awake to the 30 year american consumption machine driven by easy Al's 'free from gold' policies.  Keeping the sham alive one more decade isn't going to matter much.   Debt is not wealth.  Wealth is not consumption.  Now run along and buy some stawks.

fiftybagger's picture

Don't waste your time on these derps.  When half the population is homeless they will still be shouting USA USA USA


FreedomGuy's picture

I do not think the Chinese mean to beat us militarily, maybe just balance out better but it will take too long. It's just too big a project. However, I do believe they mean to be a world power equal or superior to the U.S. The way to do it is ecomically. That can be done quickly. In fact, we are sort of beating ourselves. You can see in other articles here in ZH that they are buying gold as fast as they can and keeping their own production. They are minimizing exposure to our debt as well as buying whatever they can with the dollars and bond they have. Pretty smart, actually.

However, they are handicapped by several things themselves. They have also practiced and implemented lots of bad Keynesian economics themselves. The reason they have all those empty malls and cities is because of these bad economics. Fake GDP and wasted resources. It works better in China than the U.S. because of the immaturity of their economy and large internal demand.

It will be interesting to see how this plays out but one lesson I think they and even perhaps the old Soviets realize that the real basis of U.S. power is economic, not military.

donsluck's picture

Our power is both economic and military, with the economic declining.

Tapeworm's picture

The NSA and Barry Choom have done terrible things to what the US did lead at. 60% drops in some categories of tech manufacturing YoY.


My finger is splinted, sorry caps

FreedomGuy's picture

Yes, but our military power derives from our economic power. It is generally true in all countries over time. You cannot have a strong technologically advanced military with a perennialiy dysfunctional economy. It is why China could field gozillions of soliders but they will walk most anywhere they go.

Ryan7's picture

of course, we Chinese will always buy...

it's not even a question- will you trust in gold or the paper the government authorized it...

Polonius's picture

And your point is?

To prove how stupid are the sellers?

Because that's already obvious to those who understand Chinese checkers.

G.O.O.D's picture

Four Chan, people are thinking he is scaming them because why dont he just go in and sell the coin himself?

Four chan's picture

our strength was a nation of free individuals with honest money and constitutionally limited government.

its all gone now, blame government education, blame facebook, blame helicopter moms, blame screen kids,

the net result is all that matters, a nation enslaved by the fed res "system" to debt, a debased currency we the people 

throw our lives away for, and a mortgaged future for all who follow, to the communist chinese and rothschilds.


god damn us for, as ben franklin warned, not keeping the republic.

mick_richfield's picture

We didn't lose it because of helicopter moms, we lost it in 1913 in a series of amazingly fraudulent 'passages' of legislation which led immediately to the worst war in the history of the world.

And it's very clear that someone was trying to give us a central bank, and thus begin the process of perverting free-market money, for a *long* time before 1913.

Somebody on this planet is apparently able to follow very long-term plans.    We the people are just now becoming conscious.

Four chan's picture

what group or tribe is able to generate a multigenerational fraud?  

BigDuke6's picture

Indeed ,
Americans should be grateful to the tribe that owns them, the MIC and their congress
They have put them to work and they run the world
Trust in your masters and stop complaining

Kirk2NCC1701's picture

Aristocracy (feudal Oligarchs) + Bankers.

They have multi-generational wealth, continuity, elite clubs & societies, where they can network & collaborate discretely (meet & scheme, w/o prying eyes & ears of the Serfs).

It's elementary, dear Watson.

trader1's picture

wasn't the "strength" all mythology?  

a national narrative that was several times over modified to fit certain interests?

TeamDepends's picture

Was it over when the Chinese bombed Pearl Harbor?

Thomas's picture

Or, as Paris Hilton tweeted, when Nelson Mandela gave his "I have a dream" speech?

GetZeeGold's picture



Was it over when the Chinese bombed Pearl Harbor?




But what the hell do you expect us to do you more-on?


Well I for one will not sit around and watch them bad mouth the United States of America.


You know what this means......that's right........TOGA!!!!

alfred b.'s picture


   ,,,,I think that maybe that it was the Japanese, and not the Chinese????


Thomas's picture

No. The Germans were the ones who took out the Queen of Hawaii to support the pineapple industry.

Tall Tom's picture

No...It was those Aliens of Nibiru preparing their way for the collision with Earth on December 21, 2012. And we all died in that collision and are living in Hell.

GetZeeGold's picture



A little warning next time......would be nice.

logicalman's picture

Not sure about the Nibiru bit, but you might be onto something with the hell thing.

G.O.O.D's picture

No it was the Pekingese

Thomas's picture

That's right: It was an army of chickens head up by General Tso. That was a spicy battle.

alfred b.'s picture


      lol...it was a honest miss take!     no need to gang-up!

     So, the USD is dead....long live the (gold-backed) yuan!

       That better...or what??


G.O.O.D's picture

Waht kinda dumb ass r u thinking it was the Japs.. sheesh

alfred b.'s picture


....and who's A-hole r u?

     ...and what GOOD stand fer....Get Out Of Dodge?      As if u know~


G.O.O.D's picture

It just so happens I do know but I am not about to tell the likes of a newman. mr. alfred b.

Harbanger's picture

Here's why you didn't get the joke about pearl harbor.


TruthInSunshine's picture

He probably thinks the owner of South Park's only Chinese restaurant built a great wall to keep the Mongol Horde out of South Park, too.

Tall Tom's picture

Don't get so damned butthurt. This is Fight Club.

BLOTTO's picture

No, It was the <looks around> Annunaki.


Annunaki - from the old name sky god An. Those of 'royal blood'

Btw, Anakin Skywalker. Had high level midi-chlorians in his blood (ie royal blood).

George Lucas, mind tripper.

K, carry on...

BLOTTO's picture

BTW imo, i think their is something special/powerful about gold they are not telling us commoners...its important to 'them' for another reason not associated with the common ones we know of...

Winston Churchill's picture

With the healing powers of silver being hidden for years ,it makes one wonder.

tip e. canoe's picture

hint: check out ormus.   a bit too woo-woo for most, but with patience, you'll be able to discern the wheat from the chaff.

also look at the experiments that Livermore Labs have been doing with the shiny:


there's much much more there if you were to do some digging.


trader1's picture

definitely woo-woo, although this is my first time reading of it:


Hudson's patented procedures definitely do not work, because it would be at odds with the known chemical behavior of gold under those conditions. The result is a worthless salt that has none of the claimed properties. Since gold is expensive, the used chemicals are corrosive and the fumes released during repeated boiling toxic, attempting those procedures is a good way to waste money and/or injure yourself. The countless alternative procedures of obtaining ORMUS also do not work - a material with superconductive properties occurring abundantly in nature would be very easy to detect, yet no such kind of material is known to modern science.

The concept is highly exploitable by quacks, who sell a wide variety of ORMUS preparations under names such as Cleopatra's Milk, Liquid Chi, Prime Enzymes, Zenergy, Sola, Mountain Manna, C-Gro, etc. intended for human consumption as well as in agriculture. They definitely do not contain any gold or other precious metals, which is in fact a good thing, because water-soluble forms of precious metals are very toxic. Mountain Manna even combines ORMUS with homeopathy for double laughs.

ORMUS enthusiasts invented countless even more outrageous theories, linking ORMUS to everything: pyramids, dead people's souls,[6] Bose-Einstein condensate, biblical manna - you name it.[7]The variety of magical powers ascribed to ORMUS was also expanded. As a side note, the notably crazy David Icke thinks highly of the powers of monatomic gold.[8]


on the other hand, the livermore labs link is very thought-provoking.

nice share ;-)

tip e. canoe's picture

yeah, i've read all sides of the story on ormus.   completely agree Hudson and almost all the peddlers are more than a bit on the quacky side of the fence.   however, did some experiments this year in the garden following the wet method on various sea salts and there was definitely a drastic improvement in seed sprouting, plant vigor and fruit set on those that I dosed with it.   what's attributing to that i have no idea, most likely the trace elements & micronutrients in the sea salt.   but which trace elements exactly?    have a friend who's a biochemist and we're going to do some more experimentation at some point.    fascinating stuff, though.

still choose to believe there's something "magical" about all those transition elements/precious metals that modern science has not gotten around to discovering yet.

tip e. canoe's picture

this is a good one as well


Even Santa Claus gets the amanita treatment in this film. Here the jolly old elf is presented in the context of northern European shamanism where, according to tradition, the shaman would dry his amanitas from a conifer tree and then visit the yurts of his community, entering through the smoke hole to bring gifts of sacred mushrooms to the people. It is not much of a stretch to see that these reindeer herding shamans were the iconic model for the fat red and white clothed Santa, who himself looks very much like an amanita mushroom.