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China Establishes World's Largest Physical Gold Fund
While many eagerly await the day when China will finally reveal its latest official gold holdings, a number which when made public will be orders of magnitude higher than its last 2009 disclosure of just over 1,000 tons, or less even than Russia, China continues to plough ahead with agreements and arrangements to obtain even more gold in the coming years.
Exhibit A: two weeks ago, Xinhua reported that China National Gold Group Corporation announced it has signed an agreement with Russian gold miner Polyus Gold to deepen ties in gold exploration. The companies will cooperate in mineral resource exploration, technical exchanges and materials supply, the largest gold producer of China said.
Polyus Gold is the largest gold producer in Russia and one of the world's top 10 gold miners.
The agreement between the two gold miners is one of many deals signed between China and Russia in energy, transportation, space, finance and media exchanges during President Xi Jinping's visit to Russia from May 8 to May 10.
"China's Belt and Road Initiative brings unprecedented opportunities for the gold industry. There is ample room for cooperation with neighboring countries, and we have advantages in technique, facilities, cash, and talents," said Song Xin, general manager of China National Gold Group Corporation.
In light of such developments, it is little wonder there has been increasing chatter in recent months that Russia and China are setting the stage for a gold-backed currency, in preparation for the day the Dollar reserve hegemony finally ends (a hegemony whose demise is accelerating with every incremental physical gold repatriation such as those of Germany, the Netherlands, and now Austria).
And now, Exhibit B: overnight Xinhua also reported that a gold sector fund involving countries along the ancient Silk Road has been set up in northwest China's Xi'an City during an ongoing forum on investment and trade this weekend. (read more about the "New Silk Road" which could change global economics forever here). The fund, led by Shanghai Gold Exchange (SGE), is expected to raise an estimated 100 billion yuan (16.1 billion U.S. Dollars) in three phases. The amount of capital allocated to nothing but physical gold purchases (without plans for financial paper intermediation a la western ETFs) will be the largest in the world.
The billions of dollars in allocated funding will come from roughly 60 countries that have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal, according to the SGE.
As Xinhua notes, China is the world's largest gold producer, and also a major importer and consumer of gold. Among the 65 countries along the routes of the Silk Road Economic Belt and the 21st-Century Maritime Silk Road, there are numerous Asian countries identified as important reserve bases and consumers of gold.
"China does not have a big say in gold pricing because it accounts for a small share of international gold trade," said Tang Xisheng of the Industrial Fund Management Co. "Therefore, the Chinese government seeks to increase the influence of RMB in gold pricing by opening the domestic gold market to international investors."
As a reminder, the reason why China has been aggressively building out and expanding its Shanghai Gold Exchange is precisely that: to shift the global gold trading center away from London (and certainly the US where only paper gold is relevant these days) and to its own native soil: China's ambition is nothing short of becoming the world's new gold trading hub.
In other to do that, it is already setting up the regional infrastructure to facilitate such a goal: according to Tang, the fund will invest in gold mining in countries along the Silk Road, which will increase exploration in countries such as Afghanistan and Kazakhstan.
The good news for China is that with the BIS and virtually all "developed" central banks in desperate need of keeping the price of gold as low as possible while they debase their own paper currencies to unprecedented levels over fears of faith in fiat evaporating, China's gold fund will be able to procure gold for its members at a very reasonable price until such time as the lack of physical gold supply can no longer be swept away by mere paper shorting of the yellow metal.
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The end of the Dollar hegemony is fast approaching.
How fast, and what "fast" means, is the key question, though, is it not? Just how long can this paper shorting game go on. The end of Dollar hegemony may indeed be fast approaching.... or not.
Fast is NOT what China's game is about. They calculate and plan years down the road. "Death by a thousand cuts".
For what it's worth: "A move to a gold standard in China would require an exchange rate of as much as $64,000 an ounce, 50 times bullion’s price now, according to Bloomberg Intelligence."
http://www.bloomberg.com/news/articles/2015-05-20/chinese-gold-standard-...
Let me help clarify the game.
1) ALL Governments are corrupt
2) ALL Governments want to print money
3) China want to belong to the club of money printers
4) The IMF and SDR's is the CLUB
5) China is threatning gold backed currenct to presuure US into letting them in the club.
6) China and the world markets are not ready for China backed currency. The infrastructure is not close to being ready, at least a decade away
7) China will not tell the world about all the gold they have initially
8) People are all sheep. People will lose. Governments will win.
9) If God existed he would kill all politicians and Central Bankers
10) Own gold and guns and pray for #9
Why would China make this public - doesnt make sense?
When they have the ALL the gold they want, they will make it public. If they were to tell the world they are accumalating this would only raise the price and make it more expensive. Once they have it all they are happy to let the price rise, Common sense.
China is giving many signals that they and the BRICS and now Silk Road countires are remonetizing gold.
When they do, Western scrip currencies are going to zero.
We have a short time to get on side or face collapse and famine.
Hey. I know the Z's hate the chinko's, but how can you hate a culture that so clearly says "FUCK YOU Joo Confetti"!
That article was like reading a commercial for all things China. So many holes in it and bullshit.
There is no reason for any country to chain itself to a gold standard backed currency.
The market has chosen gold and silver over several millenia as money.
While the uninformed see chains, others see a foundation of stability.
Fiat currencies have come and gone over several Millenia and the only thing that remains a constant is that gold and silver ARE money... Everything else is a cheap imposter...
which will in turn facilitate gold purchase for the central banks of member states to increase their holdings of the precious metal, according to the SGE.
China is giving many signals that they and the BRICS and now Silk Road countires are remonetizing gold.
Bretton Woods, AIIB version.
I agree but I would not call it remonetizing gold. It is the global reset that has been talk about for a while. It is a return to gold. Speculation is heavy as to how much gold China has and I am very confident it is huge maybe 20k to 30k tons of gold. Contracts that to the non-existent 8k the U.S. has, the game is clear, can you spell Arbitrage? It is at precisely that moment that the house of cards come down with regards to gold manipulation. No feat currency can compete with a currency backed by gold.
Game Set Match! Can you spell Zimbabwe... I am not looking forward to that day, but our leaders have truly ran the car into the abyss and as usal it the very poor that will suffer the most.
Speculation is heavy as to how much gold China has and I am very confident it is huge maybe 20k to 30k tons of gold.
Confident? Based on what?
Trust but verify.
-- Reagan
#9: That day is coming soon, God sees all. And when His decree is manifested to the bankers/politicians, I hope you have your PMs handy...
God may need your help with #9 so build your ammo "cache" and prepare to do his bidding as a good Christian.
China's growth is about the introduction of capitalism, not wonderful (central) planning. They had the same planning culture I hear so much about when they were starving their people under communism.
If you are hoping that their long term central planning is going to knock the US off its pedestal you will be disappointed, only further shift toward freedom and free market capitalism will finish pulling that off.
It kills me to hear people say shit like this. China's long term central planning has been an epic failure so far. They can't make the transitions thye need to make because they refuse to see past the fact that the more free the markets, the less central control they have. That's a shit storm waiting to happen right there.
China brought almost a billion people out starvation in a feudal society and into the 20th century in about 30 years. Some failure. You sound like you advocate free markets. What country has this?
All we can be sure of is, that the shift,when it comes, will be quicker than
the eye can see.
Once the Silk roads are up and running, it will be far too late for the US to stop the
momentum. Hubris and desperation are a heady mix.
Somerthing brash and evil comes this way.
Not so sure ...Nanex can 'see' down to the microsecond...I pretty sure the post mortem of the dollar will be able to pinpoint the moment of it's demise.
Post ipso facto isn't pre ipso facto.
wonder if there will be a rise
in boating accidents in China....
"The end of the Dollar hegemony is fast approaching".
Beware, the Gold man cometh.
I see US insprired upheavels in Western China, anything to destroy the New Silk Road. Heck, I can see the same shit happening at an accelerated rate all over the globe. Putin is going to Japan shortly, for example. The Empire is going to fight this with its' last breath.
oi vey!
"a number which when made public will be orderS of magnitude higher than its last 2009 disclosure"
I must have failed math when I wasn't paying attention...
Right on. Order of magnitude- factor of 10
So: orders of magnitude- factor of 100, or 1000 at least. That means between 100000 and 1000000 tonnes at least.
Maybe orders of magnitude in binary?
Orders of magnitude in hyperbole.
Historically, movements in gold have reflected shifts in power. The Silk Road is another indicator that a nation that was once indispensible is rapidly becoming irrelevant.
At this point, who cares. we all know for a fact the globalists are going to kill the dollar and the U.S as well that couldn't be anymore obvious. And what is more obvious they are moving the wealth to the east and leaving the west to rot just like the old roman empire
Oh great......that should be good for a $20 smack down in gold tonight. Gold will NEVER be allowed to rise when fundamentals say it should. We all know that by now.
stateside
The price will plummet because the supply has increased.
Close, the price will plummet just because.
The west will say Chinese holdings show how abundant gold is, or that it shows there's a lot more gold in the world than thought.
The government has thousands of tons in 'deep storage' under the mountains of the US. All that's needed is a few guys in Levis digging it up and a bunch of pack mules. The US is rich, rich, rich.
@CarpetShag : Yep, heard this tired ole' argument before. So depends on what statistics you want to look at and which ones you want to ignore. Sure supply has increased. However, when you take into account population growth there is significantly less gold held by banks per person today than probably anytime in the last 500 years.
Sort of like sayin' wheat price should drop significantly. There's a lot more wheat being produced today than there was 50 years ago. So why does it cost a lot more? Oh wait, there's a shitzload more people alive buying that wheat. Same argument can be made for everything from water to oil to rubber to dish washer detergent to gold.
Now if everyone would just agree that gold is a barbaric relic and give me all their precious metals I'd completely agree with your statement...that is until I got all their gold.
How shall we add Greece into the BRICS acronym? Perhaps, BRIGCS?
http://en.brics2015.ru/
Still in session.
I'll go to Texas first.
waiting for this....
Texas Bill to Establish Bullion Depository, Help Facilitate Transactions in Gold and Silver, Passes House 140-1http://blog.tenthamendmentcenter.com/2015/05/texas-bill-to-establish-bul...
Why would I want to expose myself to the third party risk of a depository in Texas?
If I chose to expose myself, I think I'd do it in a safer place than Texas.
China is much like the other kleptocracies and are like peas in a pod. Tell them what they want to hear! Then do what you want to do.
Nothing beats printing up a bunch of digimoney and spending it on real goods or loaning it out to enslave nations and people. It's especially helpful in waging wars and domesticating humans.
Like Rome, England, and the Ussa,,, they'll do what is necessary to get the approval of the masses using gold/silver then ease on over to the pure fiat shit. It only took the Ussa 57 years to completely eliminate the metal promise. That's just the kind of crooks they are.
China, becoming a world power again, will be no different.
There is nothing but cycles and trends. If you can capture each turn of event correctly, you will build your own dynasty within 2 generations.
http://www.bricsforum.org/
Enjoy.
As shown by your link:
GOLD HOLDINGS BY COUNTRY 2105 (ounces):
US = 261,534,985 oz = 8134.6 metric tons
China = 131,563,319 oz = 4092 metric tons
That's a bit more gold in China's backyard than it's conventionally reported...
Why don't we just print amother couple hunderd billion and buy more gold... problem solved.
hahaha! you are funny... go ahead with that plan and see what happens to the price of both
so we print more and go long on the gold and short our own treauries. Didn't Goldman do something like that before the collapse. I remember David Faber on squawk box breaking the story and I quote, " brilliant... wait... can they do that".
I remember now. They were shorting the mortgages they were selling...lol.
......the price of each
the price of both inplies move together
EXACTLY WHAT THEY HAVE BEEN DOING.....
Yawn.
When the history books are written about the collapse of the West, the manipulation of precious metals prices in order to prop up worthless fiat currencies will be one of its chapters. It will describe how politicians and central bankers sold their countries down the river to maintain their power.
To say this is reckless and short-sighted is an understatement. What it really is is treason.
+42. Which is why, on a Memorial Day w/e we have to ask the awkward question (causing Cognitive Dissonance in many)...
Where are the Heroes, the Oath Keepers, the Patriots... to round up the Traitors and Usurpers, and bring them to (Frontier) justice? Where?
They're waiting for the e-mail with all the addresses.
The chapter directly after this one will be on Isreal's nuclear eviseration.
What are the western banksters going to do? Ever wonder what it would be like to try and keep a bankster away from a gold stash?
They would be like rabid cerberus dogs threatening with paws pushing on nuclear launch buttons and spraying biowarfare foam into the air. Banksters would gladly execute their family members and nuke their own countries to get their hands on some of that stash. I don't see how they are going to keep any living western banker away.
here's a solution to keeping living western banksters away from the new Chinese gold hub:
KILL THEM ALL
what the players are telling all of us is that if ever the market looks as tho its about to be "priced to reality" they intend to blow it and the planet up first
Gamea ova plicks!
China steals jobs, and this theft is financed by Wall Street and “capital markets.” This action goes against the sovereignty of a people, especially main-street laboring America. In most cases, middle class American’s invented the industry and hence are no longer able to benefit from their productivity and creativity.
This below article explains why financial “capital” flees to low wage zones. It exposes myths about neo-liberal/neo-conservative theology (yes theology). Capitalism constructed with private bank credit is a dead end. Democracy in conjunction with this debt spreading credit is a dead end now resulting in plundering of the earth and war.
http://www.globalresearch.ca/neoliberal-globalization-is-there-an-alternative-to-plundering-the-earth/24403
Sovereign money is the answer to this Capital problem, as the nature of the Capital is morphed. Capital changes types, and hence an economies outputs shift.
Unfortunately, Austrians, Keynsians, NeoClassical theorists have great difficulty understanding, almost as if their minds are hypnotized and occluded. Money is not a neutral veil; it has properties such as type, channeling and volume. To ignore this reality makes a person ignorant, and hence these schools of thought are also ignorant.
An excerpt from Huber:
http://www.sovereignmoney.eu/sovereign-money-in-critical-context
“Old and new Austrians and many neoclassical economists have great difficulty in understanding currency theory and in recognising that currency, money and seigniorage are sovereign prerogatives of constitutional importance. In this respect, they are pure banking theorists, proclaiming private money creation as a cornerstone of economic freedom. In the real world, however, and for transactional reasons alone, successful 'free currencies' will over time always end up as the (credit) money of a handful of large banking corporations, subject to corporate market bending and volatile exchange-rate speculation, foreseeably worse and still more vulnerable than today's national currencies because no strong enough sovereign state, or community of states, would back up those currencies anymore.”
No Limit Capitalism, No Limit Corporations, No Limit Private Debt Money, No Limit Private Banking, No Limit Executive Compensation, No Limit Off Shoring of Wealth, No Limit to Networks of People Controlling Massive Conglomerates, No Limit to Wealth, Power & Control of either corporations or Individuals.
- Reminds me of frustrated Parents setting limits on children who feel all grown up and emancipated.
- Chicago University often gets mentioned in Liberal Economics or Neoliberal Economics as "No Limits"
- No Limit to Networking in Federal Govt, FED Central Bank, Private Banking, Think Tanks, & Foundations
----------------------------------------------------------------------
- Today we know we have a Shadow Government Problem in the USA, Networks reach limitless levels of power & control, especially since people don't leave the system, after an Ivy League School they can have 65-80 years of Networking Control -
----------------------------------------------------------------------
- Limit Less Control for older Networks I tell you -
- Building Fiefdoms and Empires within the Federal Government, Banking, or Corporations is well known
- Combined with control of the Press, Information, Statistics it is irresistible Propaganda
This is the Case for Regulations, but simple regulations that are more like ethos that a 12 year old could understand.
How does one say "This can not stand in Hebrew?"
Liberty is a demand. Tyranny is submission.
In Zi'Borg it's "Arguments are irrelevant. Resistance is futile. Prepare to be assimilated."
In Yiddish it's "Das kenen nit shteyn"
A hair's breathe away from units to dollars.
http://albainternazionale.blogspot.it/2015/05/cooperazione-militare-tra-...
Iran, Russia .... cooperations
They can have their stinkin' gold.
*We* have paper and bullshit.
Who the hell will buy into a Chinese gold fund with a promise that there are actual bars somewhere? Bogus warehouse receipts for copper, steel, and oil were just the early stages of the training program. Anyone paranoid about Ft. Knox or GLD holdings will get a big laugh from some Chinese sponsored "trust me" holding of gold.
There is two parts to the question:
1) Pricing structure
2) Where would you hold your store of value
Both have been damaged by GLD and Repothication.
Both will be improved by these type solutions.
You do not need to take part in 2 to benefit from 1
So China can read the tea leaves and
is hedging its bets ( along with many other
countries... ) !
So why is this news???
Outside of ( and maybe even inside ) some western countries
with close ties to the US, every other country is wondering how the
financial system is going to break down and how to minimise
the impact on themselves. They may not like ( bet on it
they don't like it ) gold, but they need to cover themselves
just as much as anyone else.
Who is going to sell it to them?
if central banks are the buyers, who are going to be the sellers?
joe sixpac? guess not ... Rockfellers?
I get the part that the government are the smart guys ...what i dont understand who is the stupido in the equation? any ideas?
I agree with you.
Also today at $1206 an oz, the US Manipulators are standing in the way of Capitalism while perhaps allowing wealth and power to flow to Asia.
World's largest rehypothecated physical gold fund is more like it.
Doesn't HSBC run a fund where all of the gold is "held" by scone parties, where HSBC doesn't have physical access?
Looks like the Chinese central bank just went one better...
Looks like the Gold from Indonesia after WW II was claimed by USA, France and UK and was put in UBS Depository and BIS and Swiss National Bank oversaw this... 5,000 Tons of GOLD.
I don't understand the complicated deal, but sounds like the intention was some kind of World Reserve for the World Bank.
http://www.scribd.com/doc/157112633/Social-Justice-Doctrine-the-New-Worl...
https://s3.amazonaws.com/khudes/UBS+UNCUT.pdf
This all works perfectly so long as you ignore the fact that the world's monetary gold reserves are in the Global Debt Facility. After a notarial protest with the Universal Postal Union, https://s3.amazonaws.com/khudes/notarialprotest.pdf the Global Debt Facility has liens on the twelve Federal Reserve Banks. https://s3.amazonaws.com/khudes/ucc1.pdf The International Court of Justice and CIA had to eat their words when they tried to derail the global currency reset that was launched by the Board of Governors of the World Bank and IMF at the Spring Meetings. https://s3.amazonaws.com/khudes/lcountyexecutivesofamerica.pdf
The Federal Reserve and the rest of the Network of Global Corporate Control
http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf is in receivership in the Global Debt Facility.
(yes we know the Network of Global Corporate Control exists! even Forbes has tried to disguise it in their article here -- like a pig with lipstick http://www.forbes.com/sites/bruceupbin/2011/10/22/the-147-companies-that... )
The coalition for the rule of law, consisting of the BRICS, the G-77, and the US minus the Fed are replacing the fractional reserve fiat currencies of the BIS members with currencies minted from gold allocated to these countries: https://s3.amazonaws.com/khudes/Alternative+to+WWIII.pdf
Zerohedge is simply trying to convince us of smoke and mirrors in a gloom and doom scenario that is far, far from the truth. Zerohedge and the rest of the "spin doctors" have lost their credibility. All that Zerohedge has accomplished with this article is to discredit itself even further, as if that were possible.
If any of your 'info' was remotely true, the prevalance of suicides by shitgum and
nailguns would be beyond hiding.
Karen Hudes is the source of a lot of this twaddle. A schizophrenic with a truly
amazing imagination.Keep taking your Lithium.
There is a thin line between conspiracy theorist, and stark raving bonkers, a line you seem to have
stepped over.
Winston Churchill,
Your ad hominem arguments lack any sort of logic. Just because the Network of Global Corporate control has an annoying habit of collecting on the life insurance policies of its executives when it is short of cash does not have anything to do with whether or not my statements are true. The "conspiracy theorist" line of argument has become threadbare for quite some time https://thepsychologist.bps.org.uk/volume-23/edition-7/truth-out-there
Deal with the fact that the ICJ and CIA had to take back their attempt to steal the world's gold. Just deal with it.
So you deny your primary source is schizophrenic ?
Maybe you need the Lithium.
I appreciate this look at some institutions which are new to me.
But there are several problems to be addressed.
One is that US Power springs from the fact that it acts like it has the power, it has the Military Supremacy, Economic Supremacy, Banking Supremacy, and Political Supremacy. It takes the power.
Two the Governance and Stewardship of the world reserve currency has been thrown aside for powerful Anglo-American-EU networks.
Three the narrative goes after not just one entity, but seeks to expose a whole system and many institutions. How did an attempt from the CIA & ICJ turn into an assault on the FED, revelations that the FED is insolvent, a position that someone or the FED was seeking to take down the whole Central Bank System with Fiat that it seems to be free to print at $1.5 T or $2 T each year while private banks print many times that annually, Where is the G77 Document that shows they are going to print a new currency and that you now can pay the bills for the County Police in DC.
I see the paper trail, but am not familiar with it what you sent. There is logic except in the USA our Executives hold all the power, decision making, and they take months to implement big changes in a way that provides stability to the system.
Meaning even if the Executives are breaking both US & International laws... they still hold the power through various official roles and can prevent being hauled into court and prevent lawful and official systems from working.
I guess you could call it politics even though these would often be private executives. They hold power through political & business & personal networks.
TeethVillage88s,
The answer to your question is quite simple -- uncovering the cover-up of corruption in the international financial system. You have not factored in the coalition for the rule of law, predicted by a very accurate power transition model that came from the US Department of Defense to the World Bank in 2004. The Sentia power transition model predicted in 2004 that the US would lose the Gentlemen's Agreement for appointment of the World Bank President (which happened in 2010). The model is now predicting that Germany will join the BRICS if the US does not replace Federal Reserve Notes. https://s3.amazonaws.com/khudes/sentia+model.pdf When Germany asked the Fed and US Treasury to return its gold, this power transition model was going to end in one of two ways: WWIII or an end to the Federal Reserve Notes. The Sentia power transition model started predicting the replacement of Federal Reserve Notes when the UK Parliament published three statements about the corruption at the World Bank.
In essence, coalitions within the US are working together with the Board of Governors of the Bretton Woods institutions, which administer the Global Debt Facility pursuant to paragraph 6 of the Bilateral Minesfield Breakthrough Successor Agreement. https://s3.amazonaws.com/khudes/BILATERAL.pdf
The US dollar remains the international world reserve currency -- we are talking about the US dollar that John F. Kennedy had agreed in the Green Hilton Agreement 8 days before his assassination (see p16 http://www.scribd.com/doc/157112633/Social-Justice-Doctrine-the-New-World-Order-and-Operation-Heavy-Freedom and the US dollar that Ronald Reagan printed before John Hinckley shot him https://s3.amazonaws.com/khudes/UBS+UNCUT.pdf (after his Grace Commission study showed that all US income taxes left the country and landed with the Network of Global Corporate Control https://archive.org/details/TheGraceCommissionReport-RevealedIrsFrontFor...
All of which is to say that your question relies upon an assumption that the citizenry agrees that there is a legitimate government in place in the United States. This assumption no longer holds. We are now in an interregnum. The document that shows there will be a new currency in the United States is not a G77 document (although the G77 is very much involved). The strongest documents are actually the claims of the Global Debt Facility with the fidelity and surety insurers https://t.co/4YIRriWArw who are liable for the fraud committed by federal judiciary who have broken their oaths of office by presiding over administrative courts rather than the Article III Courts guaranteed by the Constitution (which is no longer in effect, after it was supplanted by a second, secret Constitution in 1871 https://s3.amazonaws.com/khudes/two+constitutions.pdf
.9999
kilo bars...
hope they dont run it like they did with their copper warehouses....they kind of screwed that up....
'Facilitate purchases for the central banks'? Huh? Central banks would buy an ETF instead of Phyzz? Why?
This sounds funky.
Aaand the market value of gold just plunged vertically in the past hour or two.
Owning gold is certainly an important protection against economic collapse. But now may be too soon to buy in. The declining price of gold still a ways to go before it bottoms. The current bear market rally is not the time to invest...
http://www.globaldeflationnews.com/gold-elliott-wave-update-for-week-end...
I would imagine that axxholes at CB's everywhere are puckering. although they have probably war gamed this for years.