"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").

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GoldForCash's picture

Better to sell your gold and silver and buy food etc. And may I add....No communist country has ever allowed any leader of any country that betrays their country to LIVE. If you betray your own country then no one can trust you.

 

papaswamp's picture

Poke around at your local farmers/flea market. You can usually find a small farmer that will deal in silver and gold ( goats chickens etc.). Same with pawn shops ( hard items...firearms, tools etc.). Processed or long term foods... Some dealers will accept silver or gold.

Son of Captain Nemo's picture

I've thought for some time that this is a mutually contrived and orchestrated setup that the Federal Reserve is deliberately committing to -But why?

How can you guarantee that you will be supported in such a plan that calls for the deliberate systematic destruction of your own financial markets as collatoral for the transition to the next "new home"?

Even if you have all the money and means to do it with you need a lot of hired hands (on both sides) to carry that one to fruitition, and I don't believe you'll end up getting everyone on board to make it the success it has to be in order to pull it off!

 

 

DavidPierre's picture
G. Edward Griffin Unmasks the Creature from Jekyll Island

On the eve of the 100th anniversary of the passage of the Federal Reserve Act, G. Edward Griffin, author of The Creature from Jekyll Island, talks about America’s central bank... the origins and functions of this monstrosity, as well as its role in maintaining and expanding the wealth and power base of the banking cartel that own and operate it... the growing public awareness of the Fed and the rising movement of those seeking to abolish it.

Son of Captain Nemo's picture

Great read.

But the difference between then and now is these guys are destroying there own "house" on the bet that they will make more money at a future date by giving it to an intermediary -in this case China which will facilitate cheap labor for many decades to come.

Not buyin it.  If it's going so smoothly why have we seen the start of WWIII at least a dozen or more times in the last 6 years in Eastern Europe, the Middle East and now the South China Sea?  Keep in mind these are only the ones "we know about".  The U.S. and the rest of the tag along NATO "click" will never have a cozy profitable and mutually equitable business relationship with Eastern Europe or Asia because they have never nor 'will ever be' trusted with what they have already done through the use of force to get what they want.

A civil war in this Country will happen with Rockefeller and Kissinger still hanging around before they ever own China and Russia.  By that time both will be taking a fast ride off the side of the Freedom Tower or will be swinging from a rope.

Son of Captain Nemo's picture

Great read.

But the difference between then and now is these guys are destroying there own "house" on the bet that they will make more money at a future date by giving it to an intermediary -in this case China which will facilitate cheap labor for many decades to come.

Not buyin it.  If it's going so smoothly why have we seen the start of WWIII at least a dozen or more times in the last 6 years in Eastern Europe, the Middle East and now the South China Sea?  Keep in mind these are only the ones "we know about".  The U.S. and the rest of the tag along NATO "click" will never have a cozy profitable and mutually equitable business relationship with Eastern Europe or Asia because they have never nor 'will ever be' trusted with what they have already done through the use of force to get what they want.

A civil war in this Country will happen with Rockefeller and Kissinger still hanging around before they ever own China and Russia.  By that time both will be taking a fast ride off the side of the Freedom Tower or will be swinging from a rope.

sky wing 2010's picture

where can I buy Chinese yuan?

TheHound73's picture

It looks like you can buy yuan on Mt.Gox if you are selling Bitcoin...  Getting those yuan to their final destination might be a bigger issue.

GetZeeGold's picture

 

 

where can I buy Chinese yuan?

 

You're gonna shoot your eye out kid.

putaipan's picture

kinky tom kinky tom .....

Seasmoke's picture

I SOLD most all my dollars for Gold @ 1300

holdbuysell's picture

An onomatopoeia and new acronym in the making?

FTF

%&*@ The Fiat

gbresnahan's picture

Gold is so 2000 years ago. Don't they know bitcoin is the play now?

J S Bach's picture

Hilarious!  Be patient, my friends.  The PMs will equilibriate to their natural value soon enough.  Don't let this manipulation scare you into selling anything.  Remember, it's not about greedily trying to make a killing on any upward swings (although that's possible)... in the long run it's about maintaining the purchasing power of what you have earned.  You can either play the casino stock market (where the house always has the advantage) or sit tight and trust in the inimitable laws of economics and nature by holding real assets.

the tower's picture

"You can either play the casino stock market (where the house always has the advantage) or sit tight and trust in the inimitable laws of economics and nature by holding real assets"...

 

Or... get off ur ass and make some money.

What is this crap about investing/gold as the only means to make money.

It's still leeching of other people's work and profit.

 

Do you realize that the plastic on an iPhone is worth 10x the price of gold?

Do you understand that in a normal economy stocks produce minimal short term profit?

 

I predict this: very soon neither stocks nor gold will produce any significant return, for a very long time

Opportunity awaits for those who are smart, and know how to run a business.

 

J S Bach's picture

Tower, Tower, Tower...

 

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.

 

You must be young.  With the advent of years, you will come to understand the truth of what I am saying.

 

 

kw2012's picture

Gold is near its production cost. I doubt if it goes much lower.

FieldingMellish's picture

When less than 2% of a product is produced every year it only takes a small drop in demand to stop all production.

yogibear's picture

The paper gold is issued many times for a given ounce.

Oh the pain if the paper market had to reveal how levered it was

Also will find out the US doesn't have the gold reserves it was believed to have.

RSDallas's picture

The Fed will try everything to break the back of Gold. They have been trying to do so forever. 

 

 

disabledvet's picture

they've been pretty much failing forever too. So have all the other "minnie-me" Feds out there. no one "breaks the back of gold." it goes down in price, it goes up in price. do whatever you can to get more. do whatever you can to keep it. the irony of course is that it is Governments that need a stable to falling price of gold...not the Fed or the Banks. QE is bailing out the Government(s) right now. But as we saw with Detroit et al "Governments can still fail." This is in spite of a falling...if not collapsed price of gold. this strikes me as meaning a problem with the recovery and policy...not a problem of Central Banking...or at least not a problem Central Banking can in any way "deal" with now. we had a huge jobs recovery after 9/11 when that bubble burst. we've never had higher equity prices than now...the total lack of employment growth six years into this thing definitely isn't a positive. http://en.wikipedia.org/wiki/Panic_of_1873

y3maxx's picture

Canadian "Loonie" gonna become New World Fiat Currency.

logicalman's picture

Makes perfect sense, given the Loonies have taken over the asylum!

dexter_morgan's picture

gold, a relic to be sewn in to your clothing......

Tall Tom's picture

Yes...Sewn into clothing by those Austrian Jews that were so "uncivilized". I cannot believe that Charlie Munger actually got away with slamming the Jews, insulting the Jews, like that. That needed to have caused a selloff of Berkshire Hathaway.

 

But there is way too much greed. And far too many just did not read the intended, underhanded insult. I am absolutely amazed that people do not understand the subtle insult. I guess it is the most affective method as it demonstrates stupidity as it goes right over the target's heads.

 

Most believed Munger to be slamming Gold. But his intent was to call the Jews uncivilized. He is a Nazi, a fascist, whom support the subversive regime in Washington D.C.

 

Great post.

OwnSilverPlayMusic's picture

Trading real wealth for paper.  Has this great nation just given up?  It breaks my heart.

zen0's picture

Whatever has happened to "Gold, Bitchez!"

Faber is still on it.

All this Bear shit is going to hell. The apocalypse in 7-6-5-4 etc. is not working out.

All foreplay, no orgasm.

OwnSilverPlayMusic's picture

blue balls...er uh I mean gold balls

Peter Pan's picture

No need to be a premature ejaculator.

Even Jewish men the definition of foreplay: Three hours of begging.

So just wait.

soopy's picture

What, no smug chart presenting the best performing asset class for this year? Oh well, the gold price is just unicorn paper valuation, right? ZeroEdge again FTW

Spitzer's picture

Just show me one metric that suggests the price reflects the market.

 

Or just fuck off if you don't understand

soopy's picture

Sorry, I'm too busy enjoying my 5,000%+ relative outperformance vs. your shiny yellow metal to give a fuck.  Vancouver to Edmonton, eh? That already explains more than anything you say.  But don't worry, your unicorn valuation will materialize, some day. On a long enough timeline.

soopy's picture

Oh, and did you ask that question too when gold was presented as best performing asset class for whatever biased time frame ZeroEdge presented in years previous? Total fucking asshat denial.

DirkDiggler11's picture

The selling in gold ends Dec 31st. The New Year will also mark the beginning of the next leg up in gold. Why is JPM building inventory on PHYS ? Because they know the story will break in the new year about the Crime-Ex and GLD running out of Gold. When the run starts, everyone will want PHYS NOT paper.

What happens when you run out of something that has been levered out and shorted 100 to 1 ? An explosion in price that will even make the King World News crew cum their pants,

New World Chaos's picture

Tax loss dumping of paper gold (ETFs, hedge funds, futures) will be over.  Also, over the holidays, people will meet family and old friends.  The awakened will explain why things are so fucked up.  A few more will awaken, and buy gold in the new year.

soopy's picture

Not to worry though, since the Chinese are buying, the Indians are buying, JP Morgan is buying etc. etc.

zen0's picture

If the Chinese are buying, I want to get some.

All the Duck Dynasty people that tell you to buy  lead and shit, well, the Chinese have been around for 4900 years.

That would be ,like, 4800 years more than the Fed, and they have been through all this many times before.

Can't argue with experience.

G.O.O.D's picture

Yup those Chinese know how to be the best slaves the planet has ever witnessed.

GrinandBearit's picture

Most people in the US are slaves and don't even know/realize it.

matrix2012's picture

"The perfect slave is that man who thinks he is free."

Alternative's picture

I'm quite happy with the gold and silver that I got.

 

Thanks to all these fine redneck people and Chinese I know for sure it is all going up.

 

I feel safe now.

IridiumRebel's picture

Show them chinks and rednecks how tech savvy you are and buy BTC! You got it! You know economix and shit.

Alternative's picture

Nah, I am only buying stuff that's tangible. Me dunno understand this other stuff. When my gold goes up I'll be buying old McDonald's 15 year old daughter and we will raise us a little family, while the rest of the wolrd dies, from electric wires and stuff.

IridiumRebel's picture

You're so young and hip. I'm sure the FED will just stick the tip in and not go balls deep into you fools.

Alternative's picture

FED will be killed by eclectic magneto waves, you fool.

 

But yes, we are young. We'll have chicken and pigs and babies.

IridiumRebel's picture

Fuckit, I'm buying some BTC by selling a some of my stawks. In all seriousness, learn to be "without wires". Your generation is too reliant on tech. It will be your undoing. I'm learning how to fix stuff, garden and grow. We older types(I'm only 40 and still play music) understand some shit you should take notice of like self reliance. Your playing right into their hands with the crypto. Do not ignore thousands of years of human nature. I respect the premise of BTC, but it will be hammerfucked by these evil fucks. Listen to us antiquated assholes. It may save you.

G.O.O.D's picture

Bitcoin: one light switch away from ruin.