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China Eases Physical Gold Restrictions
As India continues its anti-gold stance (and does nothing but drive the undergound smuggling business), China is continuing its opening of the world's biggest physical bullion market. As India's Economic Times reports, China has granted licenses to import gold to two foreign banks for the first time. "China is actually increasing its transparency," noted on analyst, allowing more banks to import gold could increase the supply of the metal into the country, easing local prices that are higher than in most Asian nations (premiums are currently about $15 an ounce over London prices, compared to less than $2 in Singapore and Hong Kong). They rose to a record high of $30 in April-May last year. "This is the first step that the regulators are taking to ensure that its [physical] gold futures contract in the free-trade zone can take off."
China has granted licences to import gold to two foreign banks for the first time, sources said, as moves to open the world's biggest physical bullion market gather pace.
Allowing more banks to import gold could increase the supply of the metal into the country, easing local prices that are higher than in most Asian nations.
China's gold imports more than doubled last year to over 1,000 tonnes - ousting India as the biggest buyer - as demand soared to unprecedented levels due to the first drop in international prices in 12 years
...
"China is actually increasing its transparency. I think there will possibly be further access to other banks as well," said Cameron Alexander, manager of Asian precious metals demand at metals consultancy GFMS, which is owned by Thomson Reuters.
China faced a supply crunch early in 2013 when a sharp plunge in gold prices released pent up demand that eroded inventories at banks and jewellery sellers.
Premiums in China tend to be higher as supply is tighter than other parts of Asia due to the quota system and the limited number of import licences.
...
The granting of new licences is the latest in a string of steps by China to ease restrictions on bullion trading and boost market accessibility.
China approved its first gold-backed exchange-traded funds last year and extended trading hours on the futures exchange.
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The move also comes as the SGE plans to launch gold futures in the city's pilot free trade zone this year that would be open to foreign investors.
"China will need to allow more foreign players into the physical gold market if it's planning to have foreign investors participate on its gold futures," said one of the sources.
"This is the first step that the regulators are taking to ensure that its gold futures contract in the free-trade zone can take off."
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Captain, I have the USD in my cross-hairs. Wind is light. Permission to fire?
Stand by...
And the two banks were?
gold backed yuan comin' up next
Maybe jvv, I just don't get what the US is doing here. We cannot be so stupid as to not know where this leads UNLESS something is bigger here that DOESN'T involve gold in the future connection to the value of money. We have to know this gold is never coming back. Either the people are being sold out or there will be altogether another system
Au
Yu So Shin-ei
!
I’ve thought the same thing, and wonder why. One of the things I have thought of is we may have found a way to economically synthesize gold however unlikely. Or the US may have much more than they are letting on. I kind of hope that’s not the case, but it would be funny to see the look on the Chinese leaders faces. I do however think the stupidity of our government may in reality be staggering and they just might be stupid enough to allow all of our gold to go to Asia while at the same time bankrupting our nation. Either way the next 10 years will be very interesting.
And to slip on the tinfoil hat for a second, it could be the US must be completely neutered before it will relinquish itself to the NWO. Producing next to nothing, gold holdings vanquished, hyperinflated dollar, all that will be left is our military. And with the military/spying complex we've amassed, it sets us up as the new worlds police enforcers.
I don't have any thoughts on the NWO stuff, but as far as conspiracies go, at times it seems like after logically looking at the facts you are pointed in a direction that the general consensus considers fringe crazy people stuff.
The people are being sold out for an altogether new system. I found this little bit in the comments section on a story about Obama's ineptness (scary and lots of truth):
"Well he is a great President. Otherwise we would have to have a very bloody invasion to subdue America. It's much more humanitarian for the global interests to dismantle the US this way. It's better to lose your country with a whimper than a bang. The Chinese said the US needs to consider global governance (because the US system of government is obsolete)and Putin calls the US parasites on the global economy. The Obama guy was a union buster and is very well versed on getting rid of established institutions that some people still have the desire to continue. He's making the hard choices for us as he promised. You'll see there is a method to his madness. We will be much better off with global governance because the American way is seriously flawed and no longer a feasible option. Look at the failure America has become. Once we become fully steeped in the global community it will be just like a paradise without 2 party bickering and gridlock as we saw with the debt crisis. In the global governance model there will be experts and authorities to determine the best ways for us to live and we won't have to fool around with all these political problems. It's silly for common men to trifle with the affairs of state.
Let's leave it to the experts who know what’s best for the US, and the world.
I find the amateurs commenting criticizing our leaders quite amusing.
Especially in America.
America is a deadbeat nation that can't even pay for its debt because the silly Americans live beyond their means. They don't even produce anything, and they use too many resources that could be better used elsewhere in the world.
Obama is doing just fine!
These are the people who think they can run America better?
Americans are such ignorant slobs, and nobody cares what they think about the good work the President does."
Biggest authoritarian state (U.S. is a close second but the masses have guns and donut pussies like to shoot people but run fron returning fire) would love for their slaves to buy up a shit ton of gold for them, this way they only pay confiscation fee and the shipping from the slaves home to their central holding facility.
Are you suggesting that a government would confiscate their citizens gold? That would never happen would it? /sarc
China will likely take a page from Roosevelt's playbook by way of their own Executive Order 6102 when the time is right.
But Roosevelt stole gold to partially pay back foreign banks. Who does China owe gold? Nobody, therefore no reason to steel it from citizens. Moreover, easier for China to go sound money if a bunch of PM is already floating around.
Is there any indication that China wants to remain fiat? Or go sound money?
Was there not an article here on ZH a few weeks ago that showed that the Chinese printing was multiples of the west?
Does that sound like a Gold backed currency candidate?
No but if China (and India and Russia...) hold enough gold they can use it as leverage when they pull the plug on the petrodollar. Gold may become extremely valuable after that. It would be best (for them) if they had the gold and not the west.
China going sound money is something that occured to me as well.
Calling fonestar :-)
More seriously, Satoshi (whom ever that is) was either a polymath with just the right set of experience to juxtapose deep IT skills and clear understanding of fundamental Austrian style economics, OR a small team (perhaps two or three people) organised on the 'chief programmer' model, and sponsored by a state actor or some element within a state.
In the case of it being a state sponsored development project, then cui bono?
Both China and Russia are candidates to benefit from the gentle collapse of the USSA ... but I tend towards thinking the Bitcoin project orginated in China. Why? because they would benefit more from sound money than Russia. And they are actively collecting the orginal sound money - gold.
So it would benefit them greatly for Bitcoin to become sound money - with globe spanning, brilliant transactional capabilities, and if China is Satoshi, they have the initial major percentage, and are creating the hardware that generates a sizeable percentage of the remainder.
For myself ... I intend to tag along with the upward re-pricing of Bitcoin .. and if China is behind it all, that is a safe strategy for the next 100 years or so - well beyond my lifetime.
ANZ and HSBC
NO!
we might need it later... the watehouse reported that we're running low on toilet paper...
" To the Moon Alice ! "
The Chinese are smart to recognize gold as real money and make it more readily available to their citizens. I wish other countries could learn from them.
The Europeans label GMO (or ban it), the Russians pay their people to breed, the Chinese encourage their citizens to own gold. The US govt. does the polar opposite of all of these (at least as regards productive citizen). Why do the globalists hate Americans? I think you can sum it up in 3 words: the second amendment.
? explain again? Who are the globalists? China, Russia? The 2nd?
The goal has always been the destruction of America, England and Germany.
And now we have a president with the same goals.
can't come soon enough. to for full yuan convertability. that might weaken the currency...quite dramatically actually...and cause a rash of bank failures...but it will bet the Shanghai exchange moving...something that it hasn't been doing for a decade as the "Chinese variant of the American Monetary Politburo" creates an even BIGGER deflationary threat.
Why would the Chinese be buying all of these barbarian relics? They must be building a huge museum or something.
The Chinese have been through this before - they know what to do.
North America and its 300-400 year old short timeline has nothing on a culture with 1,000s of years of history and experience...
.
Nothing New Under the Sun.
Tungsten for the Masses!!
Do they mean 'ease restrictions' on gold in World of Warcraft?
Already going to be a 5th expansion too... WoW will have been around for 10+ years. Part of China's economy is based on botters.
"...as demand soared to unprecedented levels due to the first drop in international prices in 12 years"
Thats funny. As a consumer of western media I was lead to believe that "gold holders had suffered a terrible slaughter as prices dropped the most in recorded history due to complete collapse in investor interest in an asset with no government backing."
Which narrative should I believe?
pay attention to the premiums.
Implementing futures mean diluting the physical, in order to satisfy demand without real gold.
SGE contracts are to be fully backed by physical.
we're vari sowi US dolla bar your dae iss soo be ober
This makes it much easier to sieze, or 'exchange' if you prefer, for the new yuan does it not?
If not a gold backed Yuan at least a movement towards a basket of currencies that includes gold.....to replace the $US as the global reserve currency. The US used its 'get out jail free' card back in 2008 and until now.....you only get to use it once in this game. The other players have now figured this out and are working on their own gojf card. Should be ready by 2020.......at the latest.
China's pomo is 3.5T (over 3X the US) / per year - so now we are in a waiting game.
When China breaks, the music stops.
This helps China export yuan inflation and increase the volume of privately held gold to be seized in the future. No brainer.
Hi, on count 1 you are correct, importing gold works that way
The central bank sells dollar to get gold, the central bank contains/ reduces the USD assets exposure.
The commercial bank gets gold from teh Central bank while the commercial bank reserves are shrunk by the amount of gold transfered.
The central bank base money liability is reduced.
The commerical bank at the same time reduces the currency deposit of the Chinese citizen against the gold the person got.
Benefits:
Central bank reduces/contains exposure to USD (Yankees keep your Janet bucks!) and reduces excess reserves liabilities.
Commercial bank reduces its excess reserves assets with teh central bank and reduces at teh same time its currency deposit liabilities.
The consumer gets a nice saving instrument. This helps neutralize excess monetary base in Yuan, excess USD reserves at PoBC and excess currency deposits.
Of course Gold has not monetary usage according to Bernanke (yeah right).
As for seizing, communists know what topple the previous ruler and brought them to power (hyperinflation and misery). They want to cling to power.
That is the only reason the communists of China worked over time to improve the living standards of the people: To stay in power durably. If the US population at large was properous, there would be no political instability.
I would prefer this type of "communists" a thousand times over our Western "democrats".
I wish I could buy gold at $15 over spot!
"China has granted licenses to import gold to two foreign banks..."
Errr, which one is it? Import FROM, or export TO?!
p.s. Wanna see how 'liberal' and "transparant" the Chinese are? Try EXPORTING some gold!
The Implication's
The Combined Populations Of
China And India
http://en.wikipedia.org/wiki/List_of_countries_by_population
Think The
Price Of Gold Is Manipulated
But That The Manipulators'
Machinations Will Ultimately
Become A Side Show.
Well fiat money lovers don't want any gold around. They had to make owning gold illegal during the last Great Depression. So in the modern world one way for fiat lovers to get rid of all the gold is to send it away to Asia. Then they don't even have to make it illegal next time, there won't be any here in the US. Fix the price, drain the gold, don't bother with outlawing it. Brilliant!
"This is the first step that the regulators are taking to ensure that its gold futures contract in the free-trade zone can take off."
Looks to me like they want to control physical and the rehypothecated futures market. They want control of it all.
If China ever expanded their territory and became a democracy we would be their *****.
1. Ease restrictions.
2. Encouragement influx into the country.
3. Seize for the sake of national security/common interest/socialization of capital.
Rise, repeat.
Spread the Gold around to have the one world fiat currency, composed of a basket of all the large currencies? The Fiat to end all Fiats?
Wouldn't that just be special?