"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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trader1's picture

nice!  i need to watch that later.  

the comments at the youtube link are hilarious.

G.O.O.D's picture

Oh great, you just HAD to say it didn’t you?  Of course now you know we have to kill you. No hard feelings it is just the policy.. but of course you already knew that, but no you just couldn’t keep your big fatassed Martian mouth shut. You greenass lizards just never know what is good for you.  What A total bunch of fvkin lille tattletales running through the cosmos snitching everybody out and causing mayhem You rotten lowlife Neanderthal mutherfvkin..Piss on it we just gona blow Mars itself to bits to rid the heavens of the scrounge of your pathetic little existence.


fooshorter's picture

Hey there the ones that made homo sapians. When do we get the new upgrades? My brain could use a new OS.

Pseudonymous's picture

Japanese, Chinese... whatever... ain't that about the same? And a Jew sank the Titanic.


[hoping someone sees what I did there and follows it on]

matrix2012's picture

Here it's if anyone here doesn't get to the classic joke :-)


A Chinese man is standing on a street corner waiting to cross. An elderly Jewish man walks up to him, and to his face, exclaims: "Go to hell! Go to hell, for what you and you people did to the innocent people at Pearl Harbor!" The Chinese guy, baffled, replies: "The Japanese bombed Pearl Harbor, I'm Chinese." The old jew doesn't want to hear it and says: "Japs, Chinks, you're all the same." The Chinese man, getting angry, crosses his arms and asks: "Well what about all the innocent men, women, and children your people killed on the Titanic?" The Jewish man, furls his brown, and in a confused tone states: "The Titanic was sunk by an iceberg." To which the Chinese man quips: "Iceberg, Greenberg, Rosenberg, you're all the same."

theprofromdover's picture


Alfred, back to school for you.

He was quoting one of the great leaders-in-waiting of our time -either Biden, or Dan Quayle, or Spiro Agnew, or Dubya even.

SilverFish's picture

I'm pretty sure the Germans did that.

YHC-FTSE's picture

"Was it over when the Chinese bombed Pearl Harbour"?

Bravo. I think that sentence captures the spirit of the moronic outcries perfectly. Essentially,  what they're doing is exactly what most ZHers have been doing for years: Hedging against the collapse of the reserve currency facilitated by the Fed, and the rotten polygamous marriage between it and the political classes, corporatists, and the MIC. How dare they try to save themselves?  

Here's a newsflash.  Any country with a central bank is in dire straits, including China. We're all fucked for putting our trust in criminals and faith in paper. The predictable externalisation of blame - Hendry on China's mercantilism,  the Fed on people's obsession with 'babarous relics', Abe on... shit I don't have a clue what he blames but it's bound to be anything but his own batshit crazy schemes,  and so on down to the entitlement brigade blaming the government/foreigners/rich/poor/media for the sequence of decisions they made in their own lives which eventually led to living in a trailer dependent on handouts. Here's a thing about stupid people who cause all the trouble: You can bet your arse that it's never their fault.

It's not as if we were not warned for over a decade by people like Ron Paul. The whole predictable farce with the reserve currency is a reflection of most people's preferences for fantasy over fact, living on debts over living responsibly, greed and instant gratification over prudence and temperance.  

So when you whine about whose fault it is, spare a thought for the poor bastards in the third world who have been priced out of staple foods for no fault of their own but our greed and delusions of grandeur. 

As for those who espouse the most insane and abhorrent activity known to man: War, you can go fuck yourself.  There's been a distinct and ominous drip drip drip of hate in the msm to prepare the West for war with China (& Russia) for over a decade, the usual dehumanising, and blame for acts our governments casually commit on a daily basis that we find so hateful and unacceptable when somebody else does it. The projection and paranoia become fever pitched on articles like this.  War, any war, seems inevitable to shift blame away from those responsible and cover their tracks. If there's such a thing as duty and honour in this sad, abused world,  I think it is incumbent on every sane person to prevent it from happening.  How? Stop the hate, focus the blame where it belongs: The squids and tptb.

Harbanger's picture

@ fourchan  What the video shows is people are so afraid of getting scammed.  The girl @ 3:28 was funny and told the story.  She's thinking to herself, "I don't know why but it sure feels and smells like money, what is it?  People don't know because they don't have to.

matrix2012's picture


Mark Dice, never try it in ASIA or you will suffer a grand buck loss right immediately... lol


should we call them the dumbest folks on earth?

friburgensis's picture


this video is so fake i can't even believe that one person on zerohedge believes this shit! you really believe not a single person did buy the coin??? c'mon use your brain. all this scenes have been cut out of the video... 

Spungo's picture

It's a random guy trying to sell "gold" in a parking lot. Would you buy it? I wouldn't. There's a 99% chance it's not gold and it's just a scam.

webspin's picture

At least these people arn't dumb enough to be in total denile about the fact they rode an obviouse asset bubble like gold all the way down.

Jack Burton's picture

Brilliant video. Do you notice all these people respond the same way. They smile, shake their heads, laugh and say "I'm good", then laugh some more before leaving. Mind blowing ignorance. This is America, these people are not bums, they are healthy clean cut well dressed and groomed, they are the middle class. What fucking ignorance, my mind is blown. A China man would grab thet coin in an instant. America, these people have a public and college education, yet act like ignorant fuck heads.

JuliaS's picture

I've been walking around trying to sell my gold coin at last summer's prices. When people told me it was worth $1200 I told them they were confusing my real money with the paper gold being traded on the stock market. Mine was actually worth over $10000 and $1900 I was asking for it was quite a discount.

J S Bach's picture

You must learn to separate your concept of value in "things" as opposed to MONEY.  What we are discussing here is MONEY.  Things such as iPhones, houses, yachts, you name it... all have value, but they are not MONEY!  What we are talking about here is the manipulation of MONEY.  Whether you can wrap your mind around this or not... dollars, yen, pesos, Euros, etc... are all CURRENCY - based on nothing more than the "promise to pay".  Yes, a million dollars of Federal Reserve Notes will buy me a very nice house right now.  That's not the point.  100 years ago, $5,000 in Federal Reserve Notes bought an equivelant house.  What does that tell you? 


People who advocate for prudent savings in gold, silver, land, or any other tangible asset are not avaricious cads.  We merely wish to maintain that which we have earned.


What you are saying is that I should take $10,000 in gold and buy $10,000 worth of iPods or any other "valuable" asset of this immediate moment.  What guarantee do I have that these assets would be worth as much in the future?  Answer: none.


This proves my point about MONEY.


Gold and silver are MONEY.  They will - more or less (and even through brief periods of false manipulation) - maintain their trading value over any period of time.  And for me, gold is not an "investment".  It is its own savings account.  I don't own it in the hand-wringing hope of making a killing when it reaches a certain number in terms of dollars.  All I know is that if and when I need it - a comparable trading amount will be there from whence I purchased it.


Maybe I don't want to play the game of figuring out which trends to invest in to hold or grow what I have earned over the years.  Maybe I just want to save what I have earned and - when I need to - spend it in the future at an equal value.  THIS is where true money comes in... NOT counterfeit-debt-based-inflation-infected paper notes.

Agstacker's picture

What really blew my mind was googling the image of a $50 or $20 dollar bill from, say 1919 and reading it.  Then read what is on a $50 or $20 dollar bill today.

putaipan's picture

kinky tom kinky tom ....

PLira's picture

Sorry  GOOD, you make no sense. I didn't downvote ya.


ON another note. Picked up a two ounces and two coins today. Holding my powder as I think we are in a defaltionary spiral and gold is goin much lower, perhaps to 850-900 or lower.

The problem with that is that it may not be availalble when it hits those prices.

Silver seems to be holding on (for what that's worth) but I want it to get to 15-17 to buy some more.

In the meantime, bullets, band aids and food.

That is all...

G.O.O.D's picture

You dont get it? It is the golden rule, as they who have the gold... rules..  SO solly, what was yours is now ours?

PLira's picture

Ahh, I get the asian inflection now.

Color me stupid, so solly.

BTW, did I ever tell you about "Green Teeth"; the japanese whore I met on and R&R in Japan in the 60's? True story... Suck the 3 point hitch off a John Deere, no shit... Ugly as shit when the Sake wore off but I stayed 3 days, and drunk...

Wow, never been matched.

As for the Chinamen claiming our goods, if they come for ours locally, we be good in greeting them.

Thanks for the clarification

G.O.O.D's picture

Lol dont know that story but up north here there is a famous woman named ole one tooth.

G.O.O.D's picture

She never spills a drop.. well that is what I heard anyway...

CounterPartyVice's picture

I think it's not deflation because in that case the stock market would be plummeting too. It's more like a massive miss allocation of capital. The new printed money goes into the banks which in return is plowed into financial assets including short derivative gold/silver/oil contracts. Meanwhile banks are exiting the bond market quietly. Once this winds down or explode that capital doesn't vanish, it will be only transferred to the undervalued assets. You see, for capital to disappear you have to pay off debts faster than taking credit, do you think this is what it's happening now in the big picture?

toothpicker's picture

Yeah, whatever. If gold goes to 850 NO mining company will have positive cash flow. 

Rukeysers Ghost's picture

"Always someone about to stick fly in ointment." - Charlie Chan

matrix2012's picture

Confucius (551-479 BCE) says it:

"If a man takes no thought about what is distant, he will find sorrow near at hand."

Sufiy's picture

Jesse: Record COMEX Gold Claims Per Deliverable Ounce at 79 to 1 

Jesse reports that the Game Of Musial Chairs in the Western Fractional Gold Reserve System is getting into the new stage with the record level of leverage. Now report from Bloomberg can be put into another perspective. 



max2205's picture

I want some gold....at $800

The Heart's picture

So...900 fully-auto loaded chinese show up at your door one night and ask...got gold yankee?

Tall Tom's picture

If they are on your Front Doorstep you are already dead, whether or not you have Gold. That is the importance of having long range Weapons, like RPGs and mobility.


The best defense is a good offense. You stage the attacks on the invader and choose the terrain, the battlescape, that gives you the advantage while engaging in combat.


No Chinese Troops with locked and loaded weapons are ever going to be at my doorstep. But I will be assaulting their camps...from a distance.

gallistic's picture

@Tall Tom
@The Heart

Easy there GI Joes. At ease!

Take a deep breath and re-read YHC-FTSE's post above.

You badly need some perspective.

Wen_Dat's picture

@Tall Tom

Easy there GI Joe. At ease!

Take a deep breath and re-read YHC-FTSE's post above.

You badly need some perspective.


~~~~~~~~~~~There, fixed it for ya~~~~~~~~~~~~

Tall Tom's picture

I am not necessarily concerned that the Chinese are going to be a threat. I have more concern about the subverted US Government and their thugs.


Do you know the difference between "worry" and "concern"? No? I did not think that you did.


Worry is an emotional response whereas concern is a rational response.


With the ongoing assault on American Civil Liberties I have reason to be concerned about a Government incursion.


You may want to read Sun Tzu's Art of War. It is a very informative volume.


How is that for real perspective?



drdolittle's picture

Where can I get an RPG? I really need to add one to my arsenal. I'm full up with small arms.

Tall Tom's picture

Go to RPGs ~ R ~ US ???


If you want them then you have to make them.


You can plan to make RPGs and have the ready ingredients. Possesion of all ingredients are legal when unassembled.



FeralSerf's picture

Where I live, they're almost at my front doorstep. Wal-Mart is only about 12 miles away.

The new system of warfare uses financial services to capture "your" security services first. Then "your" SWAT team does what it takes (and more often than not, more than it takes) to subdue you.

Americans have already lost. You can thank LBJ, Nixon, Reagan, the Bushes, Clinton, and Barry and their owners.

"Reagan proved deficits don't matter.” -- Dick Cheney

The Dick lied. Deficits DO matter.

GetZeeGold's picture



I want some gold....at $800


So do these guys.....they've been waiting for a while now.


Tall Tom's picture

That brings back some memories.

chump666's picture


*7.75% 7day repo rate spikes - China