This page has been archived and commenting is disabled.
China's Gold Army
Submitted by Koos Jansen via BullionStar.com,
Withdrawals from the vaults of the Shanghai Gold Exchange, which equal Chinese wholesale gold demand, in week 46 accounted for 49 tonnes. Year to date withdrawals have reached 2,362 tonnes.
As part of the wide analysis of the Chinese domestic gold market I would like to share that since the seventies there is a special army in China dedicated to gold. It’s called The Gold Armed Police – if you can read Chinese have a look at this Wikipedia page.
It’s no coincidence this army came into existence in 1979, eight year after the US left the gold standard and when China started opening up under the guidance of Deng Xiaoping. As, this was the moment the Chinese slowly started to reform their economy and made the first preparations in their gold market. They knew, among others, the global dollar standard wouldn’t last forever.
On 29 October 1976 representatives of the Chinese central bank and the Federal Reserve (US, Arthur Burns) met in China and discussed international economics. From Wikileaks:
IN INTERNATIONAL ECONOMICS, THE DISCUSSION CONSISTED MAINLY OF QUESTIONS BY THE CHINESE AND ANSWERS BY DR. BURNS, ALTHOUGH THE CHINESE VIEW THAT INFLATION IS A SYMPTOM OF ECONOMIC WEAKNESS CAME THROUGH CLEARLY. THE CHINESE ASKED ABOUT DR. BURNS’ VIEWS OF THE IMF CONFERENCE AND WERE PARTICULARLY INTERESTED IN THE IMF GOLD AUCTIONS, AND THE ISSUANCE OF SDR’S. THE CHINESE ASKED ABOUT THE PROBLEM OF CONTROLLING THE $200 BILLION IN EURODOLLARS, AND GAVE THE IMPRESSION THAT THEY CONSIDERED THE EURODOLLAR MARKET A THREAT TO EXCHANGE RATE STABILITY, WHICH BY IMPLICATION THEY SEEMED TO FAVOR. THEY ALSO ASKED ABOUT COMPARATIVE GROWTH RATES AMONG THE OECD COUNTRIES. AGAIN, THE CHINESE BANKERS WERE WELL INFORMED AND HAD THEIR QUESTIONS WELL PREPARED.
In the quote from Wikileaks we can clearly read the Chinese were interested in gold. However, the Chinese economy was completely centrally planned at the time and they were not a member of the World Trade Organization or the giant exporter of goods they are now. Therefor, I suspect China had little resources to acquire gold – in the seventies China’s foreign exchange reserves were very small – while they urgently needed to increase their reserves.
Initially the Gold Armed Police was established to develop China’s domestic mining industry. China’s domestic mining output grew by an incredible 2,964 % from 1976 until 2014, according to data from the China Gold Association, and this was partially due to gold exploration by the Gold Armed Police.
Remember that before 2002 the PBOC had the monopoly on all gold trade in China. Mining output (and potential import) was transferred to the PBOC that set the domestic gold price and distributed the gold to a limited amount of designated jewelry shops or kept the metal for its official reserves. The Gold Armed Police and the PBOC must be closely associated.
Next to exploration the Gold Armed Police was also assigned to guard the mines and to do other tasks. And here is where it becomes interesting. Gold market insider James Rickards has written in The Death Of Money (2014):
A senior manager of G4S, one of the world’s leading secure logistics firms, recently revealed to a gold industry executive that he had personally transported gold into China by land through central Asian mountain passes at the head of a column of People’s Liberation Army tanks and armored transport vehicles. This gold was in the form of the 400- ounce “good delivery” bars favored by central banks rather than the smaller one- kilo bars imported through regular channels and favored by retail investors.
Although Rickards notes the convoy was lead by the People’s Liberation Army I think it’s very likely the Gold Armed Police was involved in this transport that contained monetary gold directed to PBOC vaults. We can speculate the Gold Armed Police is active in distributing the PBOC’s monetary gold into the mainland.
The Gold Armed Police in April 2011, about 100 soldiers from the 7th detachment in Xinjiang.
The other day I spoke to a gold market insider, that likes to remain anonymous, who told me “some central banks send their own airplanes to London to pick up monetary gold” when we were discussing purchases from China’s central bank in the UK. I’m quite sure the PBOC has bought a substantial amount of gold in London in recent years and I suspect the Gold Armed Police is distributing the monetary metal.
So how does the PBOC buy gold in London? Through which proxy do they do they purchase the metal? Well, that’s hard to say. But, if I may freely speculate the Bank Of China is part of this. If we read the Chinese Wikipedia page about the Foreign Exchange Reserves of the People’s Republic of China (not the English page) it states:
?????????????????????????????????????????????????
The FX reserves of the Chinese mainland are State-owned assets and managed by SAFE and the PBOC, the actual business operations are carried out by the Bank of China.
SAFE (State Administration Of Foreign Exchange) is the largest Chinese sovereign wealth fund that manages the PBOC’s foreign exchange reserves.
The Bank Of China is a commercial state-owned bank and LBMA member that can be one of the proxies for the PBOC’s monetary gold purchases around the globe. So, possibly the Bank Of China buys gold in the London OTC market, which is then transported by the Gold Armed Police to PBOC vaults in Beijing.
Below is an article I found on The China Times about the Gold Armed Police:
Source The China Times, Global Edition
China has a military unit dedicated to gold exploration, this unit is the only one of its kind in the world.

The gold exploration unit was established in the beginning of China’s reform and opening up, when the country urgently needed to increase its gold reserves. The unit has found more than 1800 tons of gold so far, helping China become the world’s largest gold-producing country.

China’s annual gold production was merely 4 tons when PRC was founded. After the gold exploration unit of the Chinese People’s Liberation Army was established in 1979, 12 detachments were sent to all over China. The picture shows soldiers from the 7th detachment of the gold exploration unit singing songs on their way in March 2006.

Gold reserves are usually located in remote and inaccessible areas. The picture shows soldiers from the 8th detachment of the gold exploration unit fighting sandstorm in Lop Nur in August 2002.

In 1995, China’s gold production for the first time exceeded one hundred tons, taking the 8th place in the world. More than half of the gold reserves were found by the gold exploration unit. Eight years later, China’s annual gold production exceeded 200 tons. The picture shows a soldiers from the 8th detachment of the gold exploration unit carrying out explosion works in August 2002.

July 2000, soldiers from the 8th detachment panning alluvial gold in Xinjiang. In 30 years, the gold exploration unit has found many large-scale gold deposits, in total found more than 1800 tons of proven gold reserves.

Lop Nur, August 2002, soldiers from the 8th detachment cooking meals in tent, two days later, the tent was swept away by flood.

Lop Nur, August 2002, soldiers from the 8th detachment having lunch together.

April 2011, about 100 soldiers from the 7th detachment carrying out geology and resources survey tasks in Xinjiang.

May 2011, soldiers from the 6th detachment taking a break after long-hours hard work in Qilian Mountain, Qinghai.

Natural gold nugget found by the gold exploration unit in 1983, it contains 1114 grams of pure gold.
- 36 reads
- Printer-friendly version
- Send to friend
- advertisements -





US/NATO also has a gold army that stole 144 tons of gold from Libya
The Battle For Libya Is Almost Over... As Is The Battle For Its 144 Tons Of Gold
Submitted by Tyler Durden on 08/21/2011 18:42 -0400
Following a 6 month stalemate in which neither side had attained any advantage, itsuddenly took just a few days for the Libyan rebel forces to steamroll unopposedinto Tripoli. While we are confident that the political aftermath of this outcome will be very much comparable to what is happening in Egypt right now, many wonder why it is that the Libyan situation has progressed with such speed. Perhaps theanswer can be found in the 143.8 tons of gold held by the Libyan Central Bank.
http://www.24hgold.com/english/contributor.aspx?article=4030120908G10020...
As Chris Powell of GATA once said, the CB gold secrets are held as tightly as nuclear launch codes.
Ask the Germans where their gold went from the NY FED. It certainly isn't there anymore.
If my mission were to find gold, (in my own country, let's be clear) I'd gladly join the infantry.
They also 'mined' 38 tons of Ukrainian gold. Poor (pun intended) Ukies.
Then there's the Afghan gold, Iraqi gold...
Payment for expensive Nuland cookies
Don't forget the flight(s?) out of Ukraine as well.
DavidC
Just guessing, but I believe Zero Hedge has an armed gold Navy. Unfortunately, it's unable come about in a sunfish.
Tain't from ZH, but the gold Navy exists in private corporations who dive in shipwrecks. sometimes they keep the booty, sometimes a foreign sovereign through court kicks their booty.
Hey duuude! Where's teh Bitcoin Army?
If it was up your ass, you'd know it.
The bitcoin army is busy playing world of warcraft
All that work for a barbaric relic , no wonder China has only been around for a couple thousand years, where as the good ol USA has,,,wait, never mind.
The Chinese invented paper money, and went through many an inflation/deflation boom/bust cycle for 800 years before the Europeans, just coming out of their barbaric state, thinking they had invented it The Chinese people are not stupid, just severely oppressed. Coming to your country soon. Sucks.
Old ZH video post for humor. Everyone is scrambling to figure out the next bet.
Nyhm - Ni Hao ( A Goldfarmers Story ) - YouTube
Wonder if the controlling group had 72 hours to figure out how to liquidate all accounts to avoid a loss in their assets.
It could become a reality TV show tracking them down like animals. Bounty hunters can be involved.
Start with all banking dealers. It would be a hit roller MSM show. Let's hope the plot writers don't attack the live TV network.
See how funny writing a teleprompter script has a effect on employed MSM newscaster reading the teleprompter?
All fictional, how does this chapter feel directly pointed to you?
Weather Channel has been on this for some time actually.
Prospectors Season 3!
https://www.youtube.com/watch?v=2qPMZwal7no
They must not like the job much... they all appear to be yawning out of boredom on that bus!
Naw, they were just watching a video of Timmy Geithner trying to reassure a bunch of Chinese students about the dollar's stability.
JP Morgan owns a special team for whenever they want to exploit a country's gold and mineral deposits. They call it the Pentagon.
A team of bankers starts to tap the country’s vast mineral riches, with help from the Pentagon.
That gold nugget is ridonkulous.
2 1/2 lbs. Schwingg!
Looting and pillaging appears to be the planned strategy for the West, especially lately. As far as Corporations acting as countries go China seems to realize and apply a far greater degree of importance and value of PM's & REE's as a strategic part of their national security and dedicate the necessary resources to it. Certainly far more that the West.
The last time I looked in detail at the West there were large gaps, some items missing completely from the list. Many of critical items were in somewhere between short supply and non-existent. All of which needed to be sourced in large amounts outside their individual countries. This included a significant number of strategic resource reserves. The global review I did of available information had China in the best position of all by far especially with respect to most REE's, then Russia, then the West.
Many years ago I had performed a detailed geopolitical analysis of key material resource requirements with respect to how they influence political change. There were direct correlations to both maintaining and overthrowing governments with respect to the results. Not surprising but the details I found were very interesting. For example, there was 1 specific resource that created a very influential reason the West to support the former Apartheid government in South Africa for so long whether they wanted to or not.
Are their numbers as believable as their government's?
Good for the Chinese. Somehow, I do not believe any of this to be true.
look they work for gold, while usa prints fake money to buy it
I really enjoy stories about these primitive ancient cults and their rituals.
SNORT I know! Money comes from a printing press, amiright?
dejavu
http://harveyorganblog.com/
He received a court order to stop publishing the daily paper trail of CME deceit.
He's a good guy to follow. We always knew the paper never matched the holding's.
Source toclarify.
http://jessescrossroadscafe.blogspot.com/2014/10/harvey-organs-gold-and-...
Goggle top link to confirm. There is nothing better than fucking up a Central planning focus group. Wait until the bullets rain down on these globalization parasites.
Which popcorn should we buy during meltdown? I guess competing networks are going to decide the proper brand.
Bull-fucking-shit is that a real gold nugget!
I'm an 8th generation desecendant of gold miners in California with my father being the last raised in the family trade (I still regularly pan as a hobby). That looks nothing like a natural deposit. If it is I'll eat MY deposits for a month.
Nice spraypaint jackasses.
Near top left center there's a small circular area that actually looks like a 'normal' nugget. You are right though, other nuggets from all around the world don't look like this one. It would make a nice lamp base - unless it's spray painted Styrofoam.
Well, I guess you don`t believe in the Chinese dog-lion also.....
BEIJING (AFP) – A Chinese zoo's supposed "African lion" was exposed as a fraud when the dog used as a substitute started barking.
The zoo in the People's Park of Luohe, in the central province of Henan, replaced exotic exhibits with common species, according to the state-run Beijing Youth Daily.
It quoted a customer surnamed Liu who wanted to show her son the different sounds animals made -- but he pointed out that the animal in the cage labelled "African lion" was barking.
The beast was in fact a Tibetan mastiff -- a large and long-haired breed of dog.
"The zoo is absolutely cheating us," the paper quoted Liu, who was charged 15 yuan ($2.45) for the ticket, as saying. "They are trying to disguise the dogs as lions."
I guess now isn't a good time to point out the recent strength in BTC?
goldfinger will win out in the end
Ironically and sadly enough, said Chinese AU is/will not be used to offer a gold-backed CNY, but to aim much, much lower: it is to xfer said National Au into private/Oligarch hands, and to buy/force their way to IMF's fiat SDR table. If only they knew that Wall St and Fleet St. types are laughing their ass(ets) off. It's the Opium Wars all over again. Rev. 2.0
probably a lot of Chinese generals smiling with gold teeth......LMAO!....
China is wise to understand that Gold is a strategic resource
China should continue with strong government & strong administration
in order to stop west from causing unrest & change of govt
with the help of NGOs & militants
with the sole purpose of looting all its gold
Keep nukes ready with big H
targetting western military satellites & their mainlands