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"China Expected To Announce It Has More Than Doubled Its Gold Reserves", Shanghai Daily

Tyler Durden's picture


The topic of China's below the radar accumulation of gold is nothing new: first revealed here in September 2011 as part of a Wikileaks intercept, watchers of Chinese gold imports have been stunned by the ravenous pace with which Chinese customers have been gobbling up both domestic and foreign gold production month after month. One needs merely to glance at the net imports of gold just through Hong Kong to get a sense of just how much gold has flowed into the country which has now surpassed India as the largest buyer of gold.

But the biggest question mark since 2009, when China gave its last official gold holdings update, has been how much gold has the People's Bank of China accumulated. One thing is certain: it is well more than the official number of just ovef 1000 tons.

Recall the confidential memo revealed through Wikileaks:

According to China's National Foreign Exchanges Administration China 's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.

In other words, between 2009 and 2011, China's gold reserves had increased according to internal data. One can assume they have increased substantially since then, however the PBOC, judiciously, has refused to provide an updated amount of its gold holdings for five years in a row: after all why buy at higher prices (if the world knows that the PBOC is buying at any price), when it can buy cheaply?

However, the period of stealth - and cheap - accumulation may be ending. At least according to the largest English-language portal in East China: Shanghai Daily.

The website, which cites an analysis by Jeffrey Nichols of American Precious Metals Advisors, reports that the Chinese central bank is about to announce its gold holdings have nearly tripled from 1054 tons to 2710 tons.

From Shanghai Daily:

China may soon announce an increase in its official gold reserve from 1,054 tons to 2,710 tons, Jeffrey Nichols, managing director of American Precious Metals Advisors, said.


The People’s Bank of China has not reported any increase in official gold holdings since 2009, when the central bank said the official reserve was at 1,054 tons, which accounted for only about 1 percent of its multi-trillion foreign exchange reserves.


The PBOC has been “surreptitiously” adding to its official gold reserves. It has bought a total of 654 tons in 2009 through 2011, another 388 tons in 2012, and more than 622 tons last year, mostly from domestic mine production and secondary supplies, Nichols said in a commentary posted on yesterday.


Central bank purchases comprise the smallest fraction of global gold demand — less than 10 percent.


“If China announces an increase in gold reserves, there would be an immediate drag-up force in the gold market,” Albert Cheng, managing director of the industrial association World Gold Council for the Far East, told Shanghai Daily.


China is the biggest gold consumer and producer in the world.


Combined demand in China in the first three quarters amounted to 821 tons and the demand for the whole last year is expected to exceed 1,000 tons, according to the council’s earlier statements.

Oh well: the period of quiet accumulation was fun while it lasted.

That said, we for one would be happy if Nichols is wrong, and if the PBOC were not to announce any time soon it has become the fourth (or third, or second) largest official holder of gold in the world. Because unlike clueless, momentum-chasing traders everywhere, it is always better to buy lower than higher: a concept which the entire Western "developed" markets and the HFT algos and sophisticated "hedge fund" investors that trade them, have either forgotten or never grasped to begin with.


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Sun, 01/19/2014 - 20:05 | 4346946 SoilMyselfRotten
SoilMyselfRotten's picture

There is such a big move coming

Sun, 01/19/2014 - 20:09 | 4346956 knukles
knukles's picture

Hah ha ha ha ha ha ha ha ha

Sun, 01/19/2014 - 20:52 | 4347049 Boris Alatovkrap
Boris Alatovkrap's picture

Once in Western Province of Xian, Boris is see Panda. Panda is not bear like Ursula Majoris, like Polar Bear or Bear tear apart by bare hand Putin, but stinking over size spotting raccoon. China is can keep stupid Panda, gold or no gold.

Sun, 01/19/2014 - 21:19 | 4347116 jcpicks
jcpicks's picture

Panda is not a sweet & cuddly animal: It is one mean SOB. Just like the PBOC, it will soon show it's claws to take over the world's reserve status.

Get ready...time of reckoning is soon upon us.

Sun, 01/19/2014 - 21:59 | 4347203 therevolutionwas
therevolutionwas's picture

Based on Austrian ecomonics I hope, and not just going to the mountain top and waiting for the prophetized end?

Sun, 01/19/2014 - 23:12 | 4347326 Ignatius
Ignatius's picture

If they announce less than 4000 tons they're lying.

Mon, 01/20/2014 - 04:19 | 4347612 Rubicon
Rubicon's picture

Its not just about what China has. Its about what the US no longer has. Add up current holding across a basket of countries and the message is clear.

Mon, 01/20/2014 - 13:07 | 4348405 Scarlett
Scarlett's picture

I hope they present the announcement with an English and a German translation immediatelly following.  Would be very kind of them.

Mon, 01/20/2014 - 08:19 | 4347735 DanDaley
DanDaley's picture

Okay, quit pandering.

Sun, 01/19/2014 - 23:13 | 4347325 Carpenter1
Carpenter1's picture

"The Chinese government announces that it now owns 27,000, er, i mean 2700 tons of gold."

Wed, 01/22/2014 - 01:56 | 4354585 papaclop
papaclop's picture

Laugh on numbnuts. I bet it takes off soon. We shall see. I'll bet the Chinese have more than the USA.

Sun, 01/19/2014 - 20:12 | 4346963 DoChenRollingBearing
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There are recent and persistent rumors that the Chinese official (government) holdings may clock in at some 2700 tonnes, much more than the +/- 1000 tonnes or so listed by the WGO in 2010.  Turd F, Jesse, Gold-Eagle and even Bloomberg have recent articles on China and possible upward revisions in their gold holdings.

Three links in my below article:


Sun, 01/19/2014 - 20:19 | 4346975 philipat
philipat's picture

China PRODUCES around 500 Tonnes of Au per year, so that's an additional 2K Tonnes since 2009 right off. Imports of Au into China have also gone through the roof in the last 3 years. I would not be at all surprised if the new Official reserve figure is 5-6K Tonnes.

Sun, 01/19/2014 - 20:44 | 4347014 DoChenRollingBearing
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A lot of what China imports and produces does not go into its official gold reserves, for example, they even encourage their people to buy gold.  The figures I got were that China produces +/- 355 tonnes per year, but behind the Opaque Curtain, who really knows?

If they do announce a revision way up to, say, over 3500 tonnes (and so move into 2nd place, only behind the USA), then THAT would make news, not even our State Run Media could hide that.

Sun, 01/19/2014 - 20:48 | 4347035 The Shootist
The Shootist's picture

Thou doth give cnn too much credit

Sun, 01/19/2014 - 21:01 | 4347071 Lost Word
Lost Word's picture

Off Topic, a story about Lee Wanta, a 27 Trillion dollar man,

earned thru currency trading for the US Goverment,

then stolen.

Search thru several layers of links for the full story.


Mon, 01/20/2014 - 07:41 | 4347708 Supernova Born
Supernova Born's picture

Knowledge is power.

China does not share power.

Mon, 01/20/2014 - 07:40 | 4347709 Supernova Born
Supernova Born's picture



Mon, 01/20/2014 - 07:41 | 4347711 Supernova Born
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wtf x who knows. Sorry

Mon, 01/20/2014 - 08:54 | 4347768 N2OJoe
N2OJoe's picture

Right on Supernova. China is waging an economic war and in the words of Sun Tzu

“All warfare is based on deception.”

Sun, 01/19/2014 - 21:46 | 4347173 Winston Churchill
Winston Churchill's picture

Wen it get selious ,you rie.

Sun, 01/19/2014 - 21:55 | 4347195 midtowng
midtowng's picture

The PBOC is taking ALL of the domestic production.

That leaves the entire rest of the Chinese economy to get their gold from foreign sources

Sun, 01/19/2014 - 22:59 | 4347310 DESMO_RR
DESMO_RR's picture

I would say 2700 would be a severe understatement. William Kaye estimates between 8-10k MT

Sun, 01/19/2014 - 21:30 | 4347142 midtowng
midtowng's picture

I wonder who is going to be surprised by this announcement?

Sun, 01/19/2014 - 20:06 | 4346948 q99x2
q99x2's picture

What you think electronic chips are made with, compressed dust?

Of course they are buying gold and will continue to. It is used for industrial purposes and jewelry.

Sun, 01/19/2014 - 20:12 | 4346962 knukles
knukles's picture

Who knows how the Chinese account for their gold (How they account for anything remains a mystery and anybody believeing any Chinese numbers is a bit tetched.) but usually "Official" gold holdings are by the Central Bank for reserve purposes and not available for commercial distribution.
They could release "Official" gold but it likewise would then count as a sale and a decrease of reserves, etc, etc, etc

Sun, 01/19/2014 - 20:55 | 4347055 disabledvet
disabledvet's picture

i agree. "they actually have a lot more gold...they just aren't telling us." ummmm "because that dude with all the gold has fled to Singapore and opened a casino so he can launder all his cash flow too?"

It's along way down the Malay Penninsula to get to Singapore Uncle Han!

Sun, 01/19/2014 - 20:29 | 4346995 Tasty Sandwich
Sun, 01/19/2014 - 20:07 | 4346952 HeavydutyMexica...
HeavydutyMexicanOfTheNorthernKingdom's picture

The PBOC needs to STFU....i'm not done buying bitchez!

Sun, 01/19/2014 - 20:32 | 4346967 Kaiser Sousa
Kaiser Sousa's picture

i suggest learning how to say that in Mandarin...

among other things like - "spare change please..."

Sun, 01/19/2014 - 20:54 | 4347052 Oldballplayer
Oldballplayer's picture

I am going to copy that. You will see me plagiarizing that all over the interwebs.

Sun, 01/19/2014 - 21:17 | 4347110 Kaiser Sousa
Kaiser Sousa's picture

all good...consider it open source...

Sun, 01/19/2014 - 21:30 | 4347141 RafterManFMJ
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I just bought a way cool carbon fiber Rickshaw; I'm ready for next career pulling Middle Class Chinese tourists around my hometown.

I go faster, yes? You like!

Mon, 01/20/2014 - 02:44 | 4347552 Uchtdorf
Uchtdorf's picture

Yeah, that and "Yu wan flies widdat?"

Sun, 01/19/2014 - 20:40 | 4347015 Greenskeeper_Carl
Greenskeeper_Carl's picture

im in the same boat, but i wouldnt worry, even if they announce some larger than expected number, it might breifly spike, but there will be the ubiquitous early morning smack down to take care of that. This doesnt in any way put a stop to the 100x leveraged paper games that will continue to take place

Sun, 01/19/2014 - 21:16 | 4347105 Kaiser Sousa
Kaiser Sousa's picture

paper games are being rendered irrelevant...

know what ur holding and keep stackin at the discount the MoneyChangers r providing u with...

Sun, 01/19/2014 - 20:26 | 4346969 JPMorgan
JPMorgan's picture

" That said, we for one would be happy if Nichols is wrong "

Yeah damn, I mean that's good news and bad news all at the same time. :-/

Well it's not been officially announced by the PBOC, so it's just a observation until that time I guess.


Sun, 01/19/2014 - 20:21 | 4346979 Seasmoke
Seasmoke's picture

Wi Tu Lo !!!!!!!!!!!!!!!!!!!!!

Sun, 01/19/2014 - 20:29 | 4346991 Hulk
Hulk's picture

Those godless Celestials hoarding that most barbaric of metals !!!

Got Milk ???

Sun, 01/19/2014 - 22:28 | 4347260 Save_America1st
Save_America1st's picture

Got Ag??? ;-)

Mon, 01/20/2014 - 02:15 | 4347544 Colonel Klink
Colonel Klink's picture

I thought Swearengen was supposed to say that line!

Sun, 01/19/2014 - 20:29 | 4346993 Greenskeeper_Carl
Greenskeeper_Carl's picture

doesnt this just account for inports? and we have no idea how much they have mined domestically, which as far as i know, all domestically mined gold stys in the country. I dont really believe any number the chinese govt puts up (just like i don't belive what the US gov says we have in fort knox) but arent they likely to have far more than what they have officially inported?

Sun, 01/19/2014 - 20:30 | 4346999 MrVincent
MrVincent's picture

I would love to see in person what a 1000 tons of gold looks like. Probably heaven!

Sun, 01/19/2014 - 20:56 | 4347064 Conax
Conax's picture

Let's see, a metric ton of gold = 51,762 cc, or 3,158.7 cu in-

A cubic foot = 1,728 cubic inches, so a ton is 1.828 cu ft, X 1000 tons..

A thousand metric tons would form a cube about 12.2 feet on a side.  About the size of a garden shed.

That's some heavy shit.

Sun, 01/19/2014 - 20:39 | 4347011 jonjon831983
jonjon831983's picture

Who knows when the revelation will actually be? If soon, around Chinese New Year when everybody is on holiday Jan 31, 2014 to Feb 6, 2014? Maybe they'd see it as good luck and fortune at that time?

Or pick your own fav holiday revelation date!

Sun, 01/19/2014 - 21:04 | 4347088 Urban Redneck
Urban Redneck's picture

This is part of a much bigger operation involving catalysts and reactions. So what is the catalyst for the announcement, or what the announcement supposed to be a catalyst for?

Luck and fortune are for cookies, so Comex, LBMA, IMF & BIS quota/bylaws what's the next step??? Unless there is a planned next step, there is simply NO point in disclosing updated holdings now.

Shanghai Daily cites NicholsOnGold who "hear[s] that the country’s central bank will soon announce..." That's bush league strategery. However, one thing I have witnessed the Chinese MIC do is plant news stories in an attempt to drive a specific Government outcome (witnessed in the context of "persuading" other governments, not their own) but with competing factions within a single party hierarchy, who's to say? (And not like it isn't done daily in the single party hierarchy of the USSA).

Sun, 01/19/2014 - 21:16 | 4347104 jonjon831983
jonjon831983's picture

Quite, one could come up with a slew of bullish "theories" of when and why something may occur.

Suddenly, within our little scope is all this "pro-gold" news.  Gold company acquisitions... manipulations.

Or perhaps we really aren't being taken for a pump and dump ride and things are getting tight at the seams enough so that they have no choice but to come out with a reveal.

Sun, 01/19/2014 - 21:47 | 4347174 Urban Redneck
Urban Redneck's picture

I just don't see the Chinese being backed into a corner with such a large and opaque share of production and such a large population to mask true non-official demand.

They've demonstrated they know how to BLS numbers, so they could overstate bar and panda production, understate domestic production, or go pure propaganda and drop stories about reviewing profitability of domestic producers or considering central bank sales to Vietnam.

Unless there's another piece of the puzzle, then the goal of any revised disclosure would/should be to further price suppression and facilitate further acquisitions at lower prices - which might be accomplished by failing to meet expectations (e.g. if they do announce, they only announce 1500 against a whisper number of 2700).

Sun, 01/19/2014 - 20:43 | 4347020 JamesBond
JamesBond's picture

somewhere there is ZHedger ready and willing to give them one bitcoin for it all...




Sun, 01/19/2014 - 20:47 | 4347025 tony wilson
tony wilson's picture
"China Expected To Announce It Has More Than Doubled Its Gold Reserves"


with german gold shipped from the federal reserve

Sun, 01/19/2014 - 21:24 | 4347124 Keyser
Keyser's picture

Along with the Queen's gold from the BOE.

Sun, 01/19/2014 - 20:46 | 4347032 gwar5
gwar5's picture

I commented last week that it was about time for Chicoms to make their announcement. They announce every 5 years in January. I think they have much more than 2700 tons. They're not going to show all their cards because it's counterproductive, just like there's no reason to declare all your nuclear warheads. Why would you? 

Rickards says they will only need 4000 tons to be a big player at the reset table. They could already have as much as 6000 tons. Currently, the squids have been going to the miners and pressurring them into selling their forward gold on the cheap below current spot --- but the Chicoms have been beating them at their own game by going around and countering the miners with a premium for their forward gold!  Chinese not missing a beat.  #Winning!


Sun, 01/19/2014 - 20:50 | 4347036 Obamananke
Obamananke's picture

I do not trust any governments official numbers. That pretty much goes for anything unemployment , inflation, gold holdings ,etc it is all Bullshit to me.

Sun, 01/19/2014 - 20:50 | 4347037 nakki
nakki's picture

So that's where all of ze German gold is being stored now. 

Sun, 01/19/2014 - 20:54 | 4347053 the not so migh...
the not so mighty maximiza's picture

with so much gold they can write off U.S. debts as a loss, and fuck us like the whores we are

Sun, 01/19/2014 - 21:25 | 4347129 10mm
10mm's picture

And we deserve to be treated like whores.

Sun, 01/19/2014 - 21:26 | 4347133 the not so migh...
the not so mighty maximiza's picture

10mm , i doubt you are going to do that willingly

Sun, 01/19/2014 - 23:29 | 4347356 10mm
10mm's picture

Correct. Just saying. 

Mon, 01/20/2014 - 16:30 | 4349005 TheReplacement
TheReplacement's picture

I should think it rather smart to treat whores well.  They do nothing but bring pleasure for buck. 

Now for those who take our bucks for their own pleasure...

What I'm saying is how dare you degrade the honorable profession of whoring by comparing it to what the west has been doing. 

Sun, 01/19/2014 - 22:15 | 4347241 Keyser
Keyser's picture

THey are not that stupid. They will use all the US paper they have accumulated to purchase physical assets, like real estate and companies in the US. They are going to own the US long before the reset. 

Sun, 01/19/2014 - 20:59 | 4347078 teslaberry
teslaberry's picture

after reading Zerohedge since 2009, i paid to post this on longbets in early 2012. here i am 2 years later---watching my prediction come true in ZH rumors. 


i wish seeing the future had helped me make money though, it didn't. 


Sun, 01/19/2014 - 22:35 | 4347272 Save_America1st
Save_America1st's picture

Damn it!!!  I had never heard of that site before.  Thanks a lot, fucker!  Now I'm going to have to start gambling again after I had kicked it for the last 6 years and stopped playing fantasy football!!!

It's all your fault! LOL


(got any good predictions??? lol)

Mon, 01/20/2014 - 16:30 | 4349007 TheReplacement
TheReplacement's picture

Double or nothing that they (announced or not) end up with more gold than the US by the end of his Presidency?

Sun, 01/19/2014 - 21:03 | 4347085 Duc888
Duc888's picture



How's Germany doing?  (or Fort Knox, for that matter).

Sun, 01/19/2014 - 21:07 | 4347093 22winmag
22winmag's picture

If true, this is the best justification yet for hangining U.S. politicians by the neck until dead.

Sun, 01/19/2014 - 21:08 | 4347096 the not so migh...
the not so mighty maximiza's picture

50% of the poplulation gets goverment checks one way or anouther, you will need allot of rope

Mon, 01/20/2014 - 05:44 | 4347668 css1971
css1971's picture

They are the ones going to be doing the hanging of politicians.

Mon, 01/20/2014 - 09:51 | 4347867 dcj98gst
dcj98gst's picture

Yes, all Obama has to do is look at what is happening in Ukraine (Kiev) to see Washington, DC's future in a few years.

Sun, 01/19/2014 - 21:14 | 4347102 greatbeard
greatbeard's picture

China sure buys a lot of gold.  I wonder what would happen to the price if they stop?

Sun, 01/19/2014 - 21:45 | 4347172 therevolutionwas
therevolutionwas's picture

What is "the price"?  That is the question. 

Sun, 01/19/2014 - 21:59 | 4347205 Watch Bird 1
Watch Bird 1's picture

Good questions, both. Does anyone know how PBOC pays for its imports?  (Using US bonds to pay for gold imports would be an interesting approach.) just wondering.

Sun, 01/19/2014 - 21:22 | 4347106 robertocarlos
robertocarlos's picture

If you are in second place behind the USA in gold reserves then that means you are in first place.

Mon, 01/20/2014 - 09:11 | 4347786 Max Cynical
Max Cynical's picture

I'm curious how Americans would react if they found out the U.S. has no gold?

Sun, 01/19/2014 - 21:22 | 4347122 10mm
10mm's picture

This is going to be intresting come spring. To cold for dollar fold.

Sun, 01/19/2014 - 21:41 | 4347153 Confundido
Confundido's picture

The Chinese are not stupid. Why would they show their cards? They are not going to show them, because they have nothing to win by doing so. This is pure gold bug propaganda. I am a gold bug, but am not delusional.

Sun, 01/19/2014 - 22:21 | 4347251 Keyser
Keyser's picture

If there is one thing I have learned in Asia is to never underestimate the Chinese. They are skrewd and ruthless when it comes to making $$$ or separating you from your $$$ by any means. If they are leaking information, it is for a reason. 


Sun, 01/19/2014 - 21:42 | 4347157 FreedomGuy
FreedomGuy's picture

This will be a surprise only if you do not read ZH.

Despite being a "barbarous relic" I would guess that China has a long term currency play in mind. At this stage of world affairs it would not take all that much.

If it is true they could really do a power play by inviting anyone to see and count it and then challenging anyone to do the same for the U.S. Treasury and Fed. It would be truly revolutionary.

Mon, 01/20/2014 - 05:40 | 4347664 css1971
css1971's picture

I recommend you take a regular look at the RMB vs USD over a long multi year timeline.

They are allowing it to appreciate, but it is still heavily suppressed.

Sun, 01/19/2014 - 21:44 | 4347158 Casserole of no...
Casserole of nonsense's picture

Cnbc will trot out some Wall Street banksters to tell us it is less than they expected and gold will get crushed. 

Sun, 01/19/2014 - 22:03 | 4347212 ncdirtdigger
ncdirtdigger's picture

Is 2014 the Chinese Year of the Golden Shower?

Sun, 01/19/2014 - 22:09 | 4347224 SweetDoug
SweetDoug's picture




What's going to happen when some country rats, say Germany, that the US does not have any gold in Knox/The Fed and China suddenly sells all the US treasuries, then announces it's backing the yuan with gold?

Where will the price of gold be?



Sun, 01/19/2014 - 23:09 | 4347324 logicalman
logicalman's picture

The price of NOT having any will be the more important question.

Sun, 01/19/2014 - 22:51 | 4347293 mijev
mijev's picture

You'll never see anything in a chinese newspaper or tv show that the government wonks don't want you to see. Then again that's probably also just as true in the US now. 

Sun, 01/19/2014 - 23:42 | 4347377 Hapa
Hapa's picture

I have to say I'm greatly entertained by the news these days.  What a ride!  So much drama.  I hope everyone takes some enjoyment from this. We are in an epic period of humanity struggling to take back the sovereign rights of the individual and breaking the ancient chains of slavery under the rule of a despotic oligarchy. We all know that intimately. The whole world is in on this.  If there's a breakthrough, it'll effect everbody and the change will be vast.  Happens every couple of millenium, they say.

Sun, 01/19/2014 - 23:47 | 4347384 thtmnbhndthecrtn
thtmnbhndthecrtn's picture

i have my little partial-tonne, and that is what matters....

Mon, 01/20/2014 - 01:49 | 4347527 Spungo
Spungo's picture

In totally unrelated news, America has doubled its tungsten reserves.

Mon, 01/20/2014 - 05:27 | 4347652 css1971
css1971's picture

Actually this is as interesting for what it does to the 10 & 30 year UST prices as the gold price.

When the bond bubble does pop (I suspect it already has), the USA is history as the world super power, it takes about 1-2 generations to realise it, but you'll see the military getting downsized by 50% or more over that time. The story you will hear, for years, is of continual budget cuts. End of the American Empire and the rise of the Chinese.

Those expecting a rapid reset are I think being a bit premature and underestimating the size and momentum involved. Think decades, not years.

Next question is where are the resources to be fought over; Middle East is already in progress, plus Australia, Khasakstan, Africa...

Mon, 01/20/2014 - 09:48 | 4347856 dcj98gst
dcj98gst's picture

It will have fits of abrubt downdrags though followed by years of calm. 

Mon, 01/20/2014 - 06:05 | 4347675 Sufiy
Sufiy's picture

China Expands Gold Reserves to 2,710 Tons - Third Largest In The World

 Now we have the confirmation from China IMF reporting to the previous report from Bloomberg. China is very serious in accumulation Gold and latest reports from Germany about the Gold price manipulation are coming now with the record leverage at COMEX with 112 owners per each ounce of Gold!


There Is No German Gold Left At The New York FED

With the highest on record leverage at COMEX of 112 owners for every single ounce of Gold and record low COMEX registered Gold at 11 t we have the set up for the major blow out phase in the Gold market. Who in their mind will continue to hold Gold at LBMA any more? According to Eric Sprott, we can expect a failure to deliver Gold and lawsuits with deliveries last February from COMEX of 40 t and China buying at least 100 t of Gold every month on average now.
  Once Gold will breach $1270 level Andrew Maguire's discussion about the massive short squeeze will become the reality and even if his predictions about $200 Up-days will not materialise, the move by Gold to the upside from the most oversold condition in history will be nothing less than spectacular.

Mon, 01/20/2014 - 06:52 | 4347692 mt paul
mt paul's picture

Comex is a paper market

little or no gold there...

Shanghai is a bullion market

strictly deliverable hard gold there

99.999 kilo bars ..


soon there will be a Shanghai price 

comex price will be irrelevant 

Mon, 01/20/2014 - 09:45 | 4347850 dcj98gst
dcj98gst's picture

If China were to announce that they plan to sell 40 billion of US treasuries a month (nullifing the FED efforts) and with that buy gold, they could take down the US markets and our global domination without firing one shot.

Mon, 01/20/2014 - 14:09 | 4348578 kenezen
kenezen's picture

True, but, while we are not a competetive exporter, producer, we do produce and send them needed Agricultural, energy product and scrap. On the consumer side we remain a substantial customer as long as our Dollar holds up.  But you are correct as could Japan as well. 

Mon, 01/20/2014 - 16:40 | 4349036 TheReplacement
TheReplacement's picture

Do you think they want to tank our system or just buy it up underneath us?  Tanking would be great for spectator value but buying up is a long term investment strategy.

This isn't football.  This is war.

Mon, 01/20/2014 - 14:20 | 4348598 kenezen
kenezen's picture

China's press months ago announced it was time for the world to be less dependent on The Dollar and the USA. That's why many investment houses and wealthy are off shore setting up subsidiaries in Re-Insurance firms to have safe aternative residences. It's not just the Chinese. It's our own banks, hedge funds and investors. The Chinese are coming close to having adequate gold to relace the Dollar as a Reserve Currency.  The BRICS have already set their currency as the trade between them. The Dollar could go down to 68 on the current futures market; And at least -20% in consumer purchases.

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