"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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GetZeeGold's picture




I know I'm not suppose to pull a USB cable out here.......I just can't remember which one.


Maybe someone at the NSA knows....

Tall Tom's picture

That is not what will ruin Bitcoin. Do you want the Truth about what will ruin Bitcoin? It is the Exponential Growth in the data size of the Blockchain. That is the inherent weakness. The current architechture is unsustainable and a restructure with centralization will transform Bitcoin from being an anonymous cryptocurrency into something easily tracked. This removes the most attractive feature.


I am not the only one whom has this opinion.




Expose the truth.

Warriorchief's picture

Don't post much, but going to chime in here. Serious chance that "we" just hit a bottom? Or whoever/whatever really is in charge just "bottomed" us? Or (possibly?) free market just called BULLSHIT on the idea of "everything is going up except gold, which is crashing through technical support" ? Double bottom at 1180 zone? Seems to have refused to crash through this level. Obviously just ranting of course...

G.O.O.D's picture

Why you asking for advice here. If you have paid any attention at all, these idiots here dont even have a clue. Best advice I have ever recieved from these boards is to do the opposite that Cramer says on mad money. Oh and of course BTFD! bitchez

CashCowEquity's picture

Everything is on sale regarding metals and miners and dipshits are running away from sales. These are the same fucktards that will be buying the top in a few years.

ebworthen's picture

The tangible will conquer the intangible, always does.

Time and patience, time and patience.

The FED is a Ponzi.

Gold isn't.

Peter Pan's picture

Time and patience are actually intangibles. But I get your point.

jack stephan's picture

Tyrell: We began to recognize in them a strange obsession. After all, they are emotionally inexperienced, with only a few years in which to store up the experiences which you and I take for granted. If we gift them with a past, we create a cushion or a pillow for their emotions, and consequently, we can control them better.

fijisailor's picture

Early morning slam downs are the thing to watch for.  Manipulators may try to trigger stops and get the price $150 lower.  The next few trading days will be the big chance for this.

FieldingMellish's picture

Absolutely. 1 or 2AM EST. London is still not fully awake. Excellent time to drop 2000 contracts in a thin market. $50 or $100 is easy to start with. Loads of people positioning to buy at $1050. Many of them will then sell at the $1180 support which will then be resistance and back down it goes to an intermediate low of $950 or less. All the while, the S&P will be making new highs.

fijisailor's picture

I think if a $1050 bottom occurs it will be all uphill from there and resume the bull market.

FieldingMellish's picture

That's one possibility. It could also be just a temporary bottom like $1525. Hit several times before finally giving way.

Jorgen's picture

I see gold bottom at 666 FRN per oz... /s

HardlyZero's picture

Cavuto...cool.  Thank you Dex.

JohnnyBlaze's picture

Fuck gold.  Fuck Silver.


When that bitch in the video said nuts and bolts I came.

JohnnyBlaze's picture

Fuck gold.  Fuck Silver.


When that bitch in the video said nuts and bolts I came.


Double post becasue I came twice.


G.O.O.D's picture

Damnit johnny you made a mess

dexter_morgan's picture

They need to get fauxcohontas on this, thats why she HAD to be elected, to clean up this manipulation and corruption, right?

G.O.O.D's picture

Shouldnt that ole white hair be riding a golf cart somewhere in fl instead of destroying what is left of the (once) free world?

gabadoo's picture

My IBM 180 calls were in the money today, so I took my future unrealized earnings and bought 100oz of physical of silver. Best of both worlds? Who cares at this point, I take winnings and SAVE in AG and AU.

rp1's picture

Well if they don't want dollars it's their loss.  Now they're stuck with all their dollars.  Trade for something useful, China.  Buy American.

G.O.O.D's picture

Yes China, could we interest you on some beautiful HEALTHY hookers from Camden New Jersey?  They are all the rage these days.

rp1's picture

How about some American goods for Chinese consumers?  You guys make some quality stuff.  I'm in Canada and we know.

Alternative's picture

Not only hookers. Nice, homely broads. They'll wave the flag for you, have some de luxe stinking cheese between the toes.

chindit13's picture

So the Chinese will have all the gold, all the remedial swimming class pigs, air not even a Kung Fu master can cut through, and an aircraft carrier with Peyronies Disease.  And all that means what?

The eventual replacement, after a multi-decade detour, for the DM that blew up in Weimar times is the fiat known as the euro.  People like their gods handed to them.  People both want and need to believe.  It is perhaps ironic that the pronounciation of both "god" and "paper" in Japanese (close enough to China for internet work) is the same:  kami.

By the way, the Chinese are still heavy buyers of USTs.  Check the October stats.  Near record holdings.  They have cut back on their JGB buys, though.

HardlyZero's picture

Maybe the Chinese will hire the US Navy to protect their stash ?

Its a new profit center in a One Way World, get the best you can when the world is running down ?



Godisanhftbot's picture

 look back on all the hysterical , drooling, lunatic posts when gold was at 1900.


 and laugh

GetZeeGold's picture



The price is down but the vault is empty.


Can you fire up that single brain cell left and figure out why that is?

BigJim's picture

Erm... because when something is underpriced... no one values it anymore, so they no longer bother storing it in a vault? All the CEO's have taken it home to be used as ballast in their yachts, to save their clients storage fees?

(they're thoughtful like that, bank CEOs)

Shrapnel's picture

December 18-19, 1912

Congress: "The basis of banking is credit, is it not?"

John Pierpont Morgan: "Not always. That is an evidence of banking, but it is not the money itself. Money is gold, and nothing else."                  


Enjoy the sale people!!                                                                                                                                                          

Alternative's picture

OMG, OMG, people, I'm gonna have a heart attack. Gold is $1 up now. Can't bilivit. It's gonna happen. It is happenning!

BigJim's picture

We refer to such things as 'surges' or 'spikes' round here, Mook.

lolmao500's picture

You don't pay us, WE KILL YOU!


China Conducts Second Flight Test of New Long-Range Missile DF-41 is second test of road-mobile, likely MIRV-capable ICBM

It was the second test of the new, road-mobile, long-range ICBM that U.S. intelligence agencies assess will be outfitted with up to 10 multiple, independently-targetable reentry vehicles, or MIRVs.


The DF-41, with its range of between 6,835 miles and 7,456 miles and expected multiple-warhead capability, is viewed as a potential “first strike” weapon, or a weapon capable of carrying out a surprise nuclear attack that would knock out an enemy’s arsenal and limit its counterstrike capability.


G.O.O.D's picture

Our spy satellites can read the date on a dime at midnight in red square but those big green tubes just blend right in and we will never see it coming…..  

BigJim's picture

Jeez, so that's how Walmart are going to beat Bezos' drones: just get the Chinese to deliver straight from China. Clever.

q99x2's picture

Fiatleak.com is starting to show a lot of Bitcoin going into China again.

fiddler_on_the_roof's picture

This bloomberg person did not speak about silver. Why ? - because silver vaults are full. Chinese & Indians don't want silver. SLV stock still is at its peak.

xxxxx's picture

So China is the worlds biggest buyer of Gold. India was the worlds biggest buyer before the government restricted imports of Gold. Exports of Gold to India are down 80%!

It's Unfortunate for Gold the Indian government will not back down on the restrictions. They feel, wrongly in my opinion that they are protecting the Rupee through restricting Gold imports. On the plus side there is huge pent up demand for Gold in India but, on the minus side these restrictions are what is holding Gold down.

fiddler_on_the_roof's picture

You don't know the facts. I talk to street level jewelers in India.
Since early this year after Indian govt restriction on Bank advance credit to jewellers to book gold from banks(like scotia bank), Jewelers have turned to smuggling source. So definitely the official import numbers will show down. But at street level the demand is higher than last year and supply is also plentiful. So get your facts right.

Asians don't like silver. Same thing with central banks. Just convert silver to gold. Else you will regret later.

BigJim's picture

Kinda ironic, really, cuz China was the last large country to ditch the silver standard.

The populace may no longer see it as money but that doesn't mean consumption isn't greater than new mine supply... and more gets 'destroyed' (well, used beyond economic recovery) than gets recycled.

So silver may yet come very good... furthermore, silver is unlikely to be the focus of any future attempted PM 'confiscation' effort by our freedom loving overlords. I doubt it will come to that - too little gold is held privately to make it worthwhile - but it is a risk you have to consider.

rp1's picture

Your attention please.

We have a big problem in the United States and it has to be fixed.

You are building the implements of a totalitarian state.

The last time somebody did that, people waited,

nobody did anything until it was too late,

and we had a war in which 50 million people died.

Are we going to do that again?

Or are you going to do something about it, right now?

Element's picture

When this is the fundamental nature of the FIRE sector and Govt, what hope do you have in this absurd system of crooks?

This interview nails it, there's nothing more to say really, fiat currency, fractional reserve and usury simply creates an endless crime-wave every time.


matrix2012's picture

Just not long ago I heard somewhere here that the Chinese were crazily piling up Bitcoins...


So, the learning one is getting confused which one is true indeed?


Physical (UP)


Virtual (DOWN)


Your bets, ZHers ;)

vegas's picture

The biggest transfer of wealth in the history of the world is well under way; all for the sake of keeping the status quo for power, corruption, and graft. I only hope I can live to see the day when Pols get what Mussolini got at the end of WWII.



giggler321's picture

Her lady says "your'all telling porkies, the vaults are full"



TheRideNeverEnds's picture

this large demand for gold must explain why most of the gold miners are only down a few hundred percent in the past couple years instead of all the way at zero....



we finally tagged the long term fib fan from the 01 lows to the 11 highs yesterday.   we should get a good bounce from here through the end of this year or gold is going signifigantly lower; if it breaks down below the 1170 level we are going to 1000.  





dark pools of soros's picture

a blind retard can throw a dart with more confidence than what you wrote

TheRideNeverEnds's picture

hey man I'm just saying.  go chart it yourself and see.  I am confident enough to have a decent sized put position in it.





Harry Dong's picture


Not sure if link pulls this up...but look at the weekly price. Gold will be at fire sale prices...900 would be my guess. But just try and get delivery lol.

Yeah, it resets...but change it to $gold with weekly. The 50 200 cross happened months ago