China Flexes Muscles At Shanghai Gold Exchange
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China Flexes Muscles At Shanghai Gold Exchange
Written by Jeff Nielson (CLICK FOR ORIGINAL)
The New Cold War between West and East has already become a Luke-Warm War, and it threatens to become a full-fledged “hot” war. After years of passively reacting to Western crime and aggression; both China and Russia have shown an increasing tendency to adopt a more proactive stance. On the economic front, China has leaped into the international gold market, suddenly and decisively.
After having purchased no gold on the open market for at least six years; China’s government has now made large, open market purchases of gold every month, for six, consecutive months. This has already totaled roughly 100 tons. Ultimately, this is gold which comes out of the warehouses of the Big Bank crime syndicate.
Of equal significance; China is funding these open market purchases with the proceeds from dumping large quantities of its U.S. Treasuries holdings. U.S. Treasuries are worthless paper, available in near-infinite quantities. Gold, as the ultimate monetary metal, is literally “priceless” in comparison to that worthless paper – while its supply is extremely limited. Selling the former in order to buy the latter may not be the banksters’ worst nightmare, but it’s close.
However; China’s open market purchases of gold are not the only example of China “flexing its muscles” in the gold market. Domestically, China has sought to steadily increase the role of the Shanghai Gold Exchange in the global gold market. It is morphing from being a mere alternative to the paper-fraud markets of London and New York into being a serious rival.
In mid-2014; China announced plans to begin offering three “physical” contracts for gold at the SGE, denominated in renminbi, in amounts of 100 g, 1 kg, and 12.5 kg. The significance of the last, larger number is that this equals the size/denomination of the “London good delivery bars” which are (supposedly) being traded in the Western world.
When we see contracts for the trading of a physical commodity labeled as “physical” contracts, isn’t this redundant? No. Rather, the clear implication is that the “physical” trading of gold at the SGE would be in contrast to the paper trading that takes place in the Western world – where more than 100 “ounces” of paper-called-gold exist for every ounce of actual metal in those fraud markets.
China further stipulated that it was “inviting” Western financial institutions to take part in the trading of these physical contracts. A Reuters article provides the thinking behind sending out such invitations:
“China wants to have more voice in gold prices,” said Jiang Shu, an analyst with Industrial Bank, one of 12 banks allowed to import gold into China. “The international exchange is the first step towards gaining a say in gold pricing.”
“If you don’t allow foreign players to participate in your market actively, or do not push Chinese financial institutions to participate in the international market, then China’s strong gold demand is only a number, not a power,” he said.
The implication is clear: international participation in trading at the SGE enhances the prestige and (perceived) legitimacy of the Exchange, and thus accelerates its rise in status vis-à-vis the exchanges in London and New York. For this reason, it will likely not be a surprise to many readers that Western financial institutions have been less-than-enthusiastic about such participation.
For newer readers, who are not yet familiar with the “role” of Western banks in the West’s ultra-fraudulent bullion markets, it’s really quite simple. These Big Banks are the “hit men” in these markets, who perennially prevent price-discovery (and thus legitimate prices) in global bullion markets, through a variety of forms of illegal manipulation.
One of their favorite methods of market-rigging is through “shorting” these markets, with massive, illegal trading, where the illegality could not be more obvious. How obvious? In 1971; the Hunt Brothers were convicted of “cornering the silver market”, at a time when their total holdings represented less than 20% of available inventories.
Today, the four Big Shorts in the silver market, all Western Big Banks, have “cornered” roughly 80% of the trading on the short side of the market. This means that each of those four, criminal institutions holds a larger concentration in this market than the percentage which earned the Hunt Brothers their criminal conviction.
More to the point; regular readers are fully aware that all of these Western banks are, in fact, nothing but tentacles of one, gigantic, financial behemoth: the One Bank. This single crime syndicate is allowed to permanently hold a short position in the silver market more than four times more concentrated than what U.S. courts have already ruled is illegal.
That’s called a double-standard. There is one set of rules for the Criminals “trading” (illegally) on the short side of the market. Meanwhile, we have another totally opposite set of rules for those individuals/entities looking to engage in honest commerce in the silver market. Put more simply: there are no rules for the Criminals, and (by implication) no rights for the honest traders.
Those are the West’s “bullion markets”: permanent cesspools of financial crime, with the Big Banks holding massively illegal short positions, which are grossly disproportionate in size to short-trading in all other commodity markets. This provides us with one of the reasons for the extreme reluctance of these crooked Big Banks to participate in offering the SGE’s (real) gold contracts.
For any player in any market with a short position; increased “long” trading directly and immediately puts price pressure on any short position in that market. Sitting on the largest (illegal) short positions in the history of human commerce, these Big Banks have little appetite for facilitating the trading of actual bullion at the SGE, to put it mildly.
However, once again, this pulls our focus back to the paper-fraud markets in the West. In the West, for some reason, these same Big Banks have (supposedly) taken an entirely opposite attitude toward being big players on the long side of the market. Indeed, these Big Banks volunteered to act as “custodians” for the largest “bullion funds” in the Western world: the bankers’ notorious bullion-ETF’s.
In legitimate spheres of the bullion world; investors who trade in legitimate bullion funds are required to bear the storage costs for holding that bullion. Thus the unit cost of their holdings in these funds exceeds the “spot” price of the bullion market at that time, by a modest premium, in order to cover those storage costs. Not so, with respect to the Big Banks’ bullion-ETF’s.
The largest of these so-called bullion funds are the SPDR Gold Trust, and the iShares Silver Trust, better known by their market symbols (GLD and SLV, respectively). The purchasers of units in these funds pay no premium for their “gold” and “silver”. Indeed, they can often purchase their units at a slight discount to the spot price.
If we were to assume that GLD and SLV were legitimate bullion funds, which were being administered for the benefit of unit-holders, then consider what is implied. As custodians; the Bullion Banks would not merely be providing free storage for the long investors entering this market, they would be subsidizing those investors, since the storage costs for the Big Banks, themselves, are greater than zero.
Note further that this is (potentially) an infinite subsidy for long investors in the gold and silver market, since they have pledged to act as custodians (and thus subsidize) any and all investors in these funds. What we are supposed to believe is that these mega-shorts, with short positions in both the gold and silver market which are so large as to be obviously illegal, are also the largest philanthropists on the planet on the long side of the market – offering infinite subsidization for long investors in gold and silver, but only in the Western markets which they control.
It is for this reason that few serious commentators in this sector regard these banker bullion-ETF’s as legitimate enterprises, which then brings us back to the natural reluctance of these Big Banks to facilitate the legitimate trading of gold at the SGE. This leads to the latest headline in this melodrama:
Foreign banks in China could face curbs if they snub benchmark
As part of making the SGE an equal with the New York and London exchanges; China has insisted that it, too, will begin issuing a daily “gold fix.” Again for the benefit of newer readers; a daily “gold fix” (or “silver fix”) is an attempt to establish a daily price norm, from which deviations in price would then be measured.
While largely symbolic, these price “fixes” have a psychological impact on the market. For this reason, it will again be little surprise to readers that this same cabal of Big Banks has now confessed to the serial manipulation of both the gold fix and silver fix, in Western markets. And for that reason; it is little wonder that China is insisting upon its own “gold fix”.
Just as Western banks have shown little enthusiasm in facilitating the real gold contracts of the SGE, so too are they reluctant to endorse China’s gold fix, through taking on a (supporting) role in its administration. Thus the need for China to again flex its financial muscles.
China has warned foreign banks it could curb their operations in the world’s biggest [real] bullion market if they refuse to participate in the planned launch of a yuan-denominated benchmark price for the metal, sources said.
The conundrum which faces the Western banking crime syndicate? They can’t manipulate what they don’t control, and in order to attempt to control trading at the SGE, they need their own share of seats at the table.
After China’s latest volley, the ball is now in the bankers’ court. The view from this corner of the world of journalism is that these Big Banks will not be able to resist their natural impulse to seek to fully corrupt this market (as well), and will become full participants – either directly, or through (hidden?) proxies. For the banksters, one “free” gold market would be one too many.
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China Flexes Muscles At Shanghai Gold Exchange
Written by Jeff Nielson (CLICK FOR ORIGINAL)
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Hunt brothers were convicted in the 1980's not 1971
I have noticed since the volatile stock market swings PMs have been volatile also.
Interesting.
1: Still very risky to have your gold and/or Silver Plat.in a depot
These are the first places any Goverment goes to collect the Silver and Gold if they 'need' it.
2: If this gold is bought with a Credit card by Swift money system , easy to track the owners ( 2 minutes)
The owner has to deliver and from where it comes does not matter to a Goverment.
If a depot cannot deliver the owner and fam. might be in stormy wheather.
You trust your Goverment, I have very serious doubts and a many.
The Sanghai Gold exchange has its notations in Yuan but trades in dollars. Dollars could be a problem later. SGE is still in dollars so no problem for US at all or Comex.
If China want they could avoid Dollars later and invite the Rubel and other currencies. Dollar Dominance and as world reserve currency -Oil- Gold - Silver all Dollar traded
Its dominance- brought so much misery suffering wars now in Syria Iraque Lybia earlier Vietnam Korea Afghanistan -Iran and Egypt tried but will get a new attack.
Without this Dollar wars would not be. An American does not benefit for one dollar cent from this policy contrary > US economy goes down Hardly investements in own economy. Hardly midddle class .Hardly work No money for own infrastructure.
USA goes into Lybia cause he Ghadaffi wanted a Gold based currency and robbed 124 tons of the countries gold.
Ukrain lost all of its Gold 22 tons when Cia entered last year.
S- Vietnam was robbed of its Gold/Silver as Korea was. Iraque lost all its Gold round 100 tons estimated.
Iraque Lybia Ukrain brought in round 246 Tons of Gold to the USA alone. 246 Tons Gold just stolen from a sovereign country . So light a candle. Nowhere this was written or allowed to be written.
Iraque Lybia so much oil such a poor country now. Syria a beautiful peaceful country.It takes a country 30 years- See Vietnam - to have a reasonable economy infrastructure economy schools back.
They rob any country so think about a simple depot....
You trust your Goverment, definitely not this One. A smaller owner is/might not be not interesting enough.
I'd keep my PMs in a Malaysian vault, if I were the manager and lived on premise.
Here is why gold prices are so low:
http://michaelekelley.com/2015/07/20/dear-fed-plz-raise-gold-price/
http://www.zerohedge.com/news/2015-07-09/are-big-banks-using-derivatives-suppress-bullion-prices/
Here is how to prepare.
http://michaelekelley.com/2014/10/16/8-things-to-do-when-recession-happens/
The Western banks will not be able to inflitrate China. When they try it (the historical neo maoists) they are executed.
They will no more be able to interfer with China than the US is able to interfer with Syria.
They are not infallible!
If this is true and continues as they say, they have lost!
China knows how to handle criminal "short sellers" - about time some bankers found out first hand.
China knows how to handle criminal "short sellers" - about time some bankers found out first hand.
"The old order changeth, yielding place to the new
And God fulfills himself in many ways,
Lest one good cutom should corrupt the world..."
- Tennyson, Morte D'Arthur
Anti-PM folks seem pretty wound up over the prospect of price discovery in precious metals.
Over the next year or so you will be lucky if gold stays at about $700. It could easily go down as low as $200.
There is massive deflation which means actual cash dollars become very valuable. If you hold $1000 cash, that will probably be able to buy in about 5 years what $100,000 buys today.
Why is this? Why is there deflation? Our money is created when debt is created and debt is wiping out faster and faster and faster. That means we are being and will be hammered by deflation. In deflationary times gold and silver and all commodities loose their value.
Soon the wipe out will become a Nuclear holocaust because the banks will no longer be able to hedge their losses nor will they be able to pay their bills. When 1/2 of all the banks close without warning and your credit cards do not work, your actual cash dollars will be worth a fortune; not gold. Gold will fall like a rock.
One thing for sure is that gold and silver are not going back to their prior highs until inflation returns. Inflation will return when all the excess production capacity has been purged and all the bad debt has been written off.
And for all the crazed gold bugs, just put this article in the back of your mind and when it happens then you will realize how you have been scammed. If gold gets to $200 wait 5 years and start buying with everything you have because it will start to rise again and once again for 5-10 years out perform all other investments.
it seems you don't understand the difference between a commodity used in industry vs. a monetary metal. They behave very differently.
You also are missing the significance of a world-wide currency system failure and how that affects pricing of monetary metals.
$200 = IdiotSpeak
Keep on dreaming man ( or smoking pot ) - ever been to a grocery's lately? Guess not ...
Gold just sits there.
Fiat wanders about a lot.
Yes, fiat wanders a lot - always downwards.
You are an idiot!! Have you been to the grocery store lately? Food prices are not coming down dude!!!
Also, Central banks are not wiping off debt..they are creating more of it at record levels never seen before in history. The FED will reverse course soon and QE4 will soon be on the docket.
Again, you are an idiot!
I own gold and like owning gold.
Having said that, let me say this, "This is a dumbass piece on about 8 different levels.
Sprott must be running out of ideas and has gone to the random shit to the wall approach, factual or not.
Exactamundo! But else would you expect from a used car salesman type of "informative piece"?
---
Established in February 2008, Sprott Money Ltd. is a leading precious metals dealer providing gold coins, silver coins and bullion bars. As one of Canada’s largest owners of gold and silver bullion, the company’s goal is to facilitate ownership of precious metals no matter how big or small the portfolio.
StupidHammer, get your fat gut off the keyboard and you won't generate all that blank space. Is this your artwork meant to show the extent of blank space you posess between your ears?
The ZIOS have to be getting worried. Expect their "ISIS" attacks to spread to China. Funny how ISIS never wants to attack IsreaHELL...
Done already. Weegurs imported thru Thailand until the Thais caught on and shut it down, are the moderate, head-chopping Turkomen getting plastered all over Turkomen Mtn. in N. Latakia Provence, Syria.
Yeah, that is sort of the "smoking gun" there. The Only place they don't attack, which should be their #1 Enemy.
ISIS=Israeli Secret Intellingence Service!
$303 mln buys out the entire registered Comex gold stock. Imagine if a ZH'er had won that lotto...
You can't buy what they don't, or won't deliver.
Things that make you go HMMMM.....
Whenever I see this kind of stuff, that's what I do.
You have to ask yourself, if 'the system' could be blown up for that kind of pocket change, why has nobody done it yet?
hmmmm....
That would have been fucking epic.
Nothing like having the People's Army, a unit of, in the field producing gold ore.. Paper is paper in the end. gold is just a curency backer of trade of goods and services.. a unit to debunk the trade in debt. Russia buys US debt to get its dollar levered companies back. Looks like Marx's theory is playing out. Socialism is here to stay, unless one is going to get rid of the people and that is..
How soon is this China thing going to actually do anything for the gold price? I don't want to hear "eventually," "ultimately," "someday," "finally," "somewhere over the rainbow," "between here and eternity," etc..
Is it in effect now? Or is this just one more of these "in six months, in twelve months, in eighteen months, in three years"-type non-events that never happen?
o/`Looking for a moment that'll never happen,
Living in the gap between past and future. o/`
-- Kate Bush, "The Love and the Anger" (1989)
You can actually calculate the time based on total gold, rate of purchases (which may vary), rate of extraction (production) and price of total gold.
China, Russia, India and lesser buyers can afford to buy all available gold for sale if they wanted to.
Can not speculate how high the price will be, but one can trade a 41 footer for a 120 ft 3 masted schooner with captain and crew and 5 year supply of Bollingers
The tribe is still worshipping the "golden" calf, two thousand years later.
But doesn't "the tribe" reduce to the Rothschild Dynasty, to which ordinary Jews cannot belong, whether or not they are religious, or whether or not they are secular with a very peculiar idea of being a "Semitic race", though comprizing mainly Europeans (Ashkanazis), with a sizeable minority comprizing Chinese, Japanese, Ethiopians and whatnot.
In any case the self-styled "jews" of today have zero connection with the Hebrews who worshipped a golden calf (at least in legend) many millenia ago - say about 3-4,000 years.
the commodities market could be fixed by a simple rule that only allows users and producers of the commodity in the market and only after identifying actual supply and not paper supply. speculating in the equity market(miners, production) doesn't harm anyone. messing around in the commodity market affects everyone including those people who don't have a clue what a commodity is.
Very good article. I enjoyed the succinct presentation of the gold market manipulation.
Of which they (Sprott) would happily take your money to participate in...
“If you don’t allow foreign players to participate in your market actively, or do not push Chinese financial institutions to participate in the international market, then China’s strong gold demand is only a number, not a power,” he said.
Au contraire...
The 'number' (of physical Tonnes held in possession) IS the 'Power'.
Comex toys with those Tonnes as if they were paper. Until that stops, nothing changes.
Yes! Until there is no physical left in their volts, they will then be selling paper to each other for a little while until war breaks out.
Just like Singapore and Dubai, this will come to nothing. Comex cannot have competition.
China is a hell of a lot bigger than Singapore and Dubia.
Goldman Sachs, JPMorgan, Bank of America, Morgan Stanley, Citigroup, Deutsche Bank, Barclays, Credit Suisse, UBS,
( Rumors are they are all ONE Bank )
Now who would start such a Rumor.. My Kind of Guy..
behold the One Bank and it's tentacles
from the link behind:
"Approximately two years ago; a commentary was published entitled “The One Bank”. The empirical foundation for the article (and the paradigm) was an extensive computer model, produced by a trio of academics at a university in Switzerland, and originally reviewed in an article from Forbes.
The gist of the computer modeling was that a single “super-entity”, by itself, controlled roughly 40% of the global economy. The term “super-entity” is simply a synonym for monopoly. The research further stipulated that ¾ of the 140+ (gigantic) corporate fronts which comprised this mega-monopoly were financial intermediaries (i.e. banks), hence the title, The One Bank.
The research names “names”. Goldman Sachs, JPMorgan, Bank of America, Morgan Stanley, Citigroup, Deutsche Bank, Barclays, Credit Suisse, UBS, Merrill Lynch, Bear Stearns, and Lehman Brothers are among the Big Banks listed as being tentacles of this enormous, financial crime syndicate. Note that the latter names on that list are deceased, (supposed) “casualties” of the Crash of ’08. But with all of these financial tentacles part of a single whole; this proves that the bail-outs which came after that event, and even the crash itself were pure fraud. "
parts of the article are a bit shrill. or perhaps not shrill enough
I have linked that study many times sir. EVERYONE should read it.
Commentary is fine but the original study is the real read....
I do not have a direct link but this should bring it up:
Look for
The network of global corporate control
Stefania Vitali1, James B. Glattfelder1, and Stefano Battiston
Here is a direct link:
http://arxiv.org/pdf/1107.5728.pdf
Would it be a stretch to assume that, ever since the 1780s, the main body of the beast - controlling all of the tentacles - is the Rothschild Dynasty?
This is what I have come to conclude and that moving on from being lenders to the old European aristocracies, the Rothchild Dynasty is the new(ish) aristocracy gone global and largely incognito behind such fronts as central banks, the IMF, the World Bank, the BIS and sundry "think tanks" like the Bilderbergs, Davros, G20 and so on.
Thus we have near-global Financialism in place of Capitalism and/or a "real economy", because all the Rothchild's ever knew was manipulation of the money supply ... nothing about manufacturing, farming, nor anything ordinarily associated with production of any kind.
It's all parasitic anf finally(?) revealed by the bail in/confiscation of even working monetary capital, e.g. bank deposits by companies intended to buy raw materials and equipment, and to pay wages.
As Ellen Brown and others explain it, all is at risk because holders of derivatives are first in line to be "made whole". i.e, the TBTF tentacles.
The Network of Global Control...
No... They went legit a long time ago. When they tricked everyone into contracting with their corporations that look and sound like the governments they replaced. It's all good in the land of the sea.
Along with the Sassoons - another trillionaire-trust family married into the Roths and the legit suppliers of opium to England .. and perhaps still the largest not-so legit suppliers of opium to the world.
"The Great Red Dragon: Foreign Money Power in the United States" published in 1889, pointed out such a thing. It was called the "Imperialism of Capital" and pointed to the City of London Corporation. It's just been getting bigger all this time because so many continue to feed it.