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China Imports More Gold From Hong Kong In Five Months Than All Of UK's Combined Gold Holdings

Tyler Durden's picture





 

There are those who say gold may go to $10,000 or to $0, or somewhere in between; in a different universe, they would be the people furiously staring at the trees. For a quick look at the forest, we suggest readers have a glance at the chart below. It shows that just in the first five months of 2012 alone, China has imported more gold, a total of 315 tons, than all the official gold holdings of the UK, at 310.3 according to the WGC/IMF (a country which infamously sold 400 tons of gold by Gordon Brown at ~$275/ounce).

As for the UK (from the WGC):

From Bloomberg:

In May, imports by China from Hong Kong jumped sixfold to 75,635.7 kilograms (75.6 metric tons) from a year earlier, Hong Kong government data showed. The nation “remains the most important player on the global gold market,” Commerzbank AG said in a report. The dollar fell from a five-week high against a basket of currencies, boosting the appeal of the metal as an alternative investment.

 

“Higher physical demand in China is good news for the market,” Sterling Smith, a commodity analyst at Citigroup Inc.’s institutional client group in Chicago, said in a telephone interview. “The mildly weak dollar is also positive.”

 

The World Gold Council has forecast that China will top India this year as the world’s largest consumer because rising incomes will bolster demand.

And those looking at the trees will still intone "but, but, gold is under $1,600" - yes it is. And count your lucky stars. Because while all of the above is happening, Iran and Turkey have quietly started unwinding the petrodollar hegemony. From the FT:

According to data released by the Turkish Statistical Institute (TurkStat), Turkey’s trade with Iran in May rose a whopping 513.2 per cent to hit $1.7bn. Of this, gold exports to its eastern neighbour accounted for the bulk of the increase. Nearly $1.4bn worth of gold was exported to Iran, accounting for 84 per cent of Turkey’s trade with the country.

 

So what’s going on?

 

In a nutshell – sanctions and oil.

 

With Tehran struggling to repatriate the hard currency it earns from crude oil exports – its main foreign currency earner and the economic lifeblood of the country - Iran has began accepting alternative means of payments – including gold, renminbi and rupees, for oil in an attempt to skirt international sanctions and pay for its  soaring food costs.

 

“Iran is very keen to increase the share of gold in its total reserves,” says Gokhan Aksu, vice chairman of Istanbul Gold Refinery, one of Turkey’s biggest gold firms. “You can always transfer gold into cash without losing value.”

 

Turkey’s gold exports to Iran are part of the picture. As TurkStat itself noted, the gold exports were for “non-monetary purpose exportation”. Translation: they were sent in place of dollars for oil.

 

Iran furnishes about 40 percent of Turkey’s oil, making it the largest single supplier, according to Turkey’s energy ministry. While Turkey has sharply reduced its oil imports from Iran as a result of pressure from the US and the EU, it is unlikely to cut this to zero. The country pays about $6 a barrel less for Iranian oil than Brent crude, according to a recent Goldman Sachs report.

 

According to Ugur Gurses, an economic and financial columnist for the Turkish daily Radikal, Turkey exported 58 tonnes of gold to Iran between March and May this year alone.

And here is the punchline: if Iran is getting gold in exchange for products, that means that someone else is demanding Iran's gold in exchange for other products. But we won't read about it until those "others" decide to issue a press release.

In other words, the anti-dollar trade is now alive and well, and Iran has been happily transacting in a dollar-free vacuum since the March SWIFT embargo. Most likely "buyers" of Iran's gold? The usual suspects of course: China, Russia, (both of whom recently established bilateral trade relations with the country just for that purpose, here and here) and India.

So: is gold fairly valued at $1,000, at $1,600 or at $10,000... Or is that question even relevant any more as the part of the world that is not broke is quietly shifting to its as its default currency?

 


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Tue, 07/10/2012 - 14:31 | Link to Comment walidsassia
walidsassia's picture

and gold is dropping ???

Tue, 07/10/2012 - 14:36 | Link to Comment Quintus
Quintus's picture

When there is 100x more paper fantasy gold being traded (but never physically delivered) than real gold, the price has pretty much nothing to do with physical supply and demand.

The Wall St. and LBMA banks can play their games and set any price they want (A bit like Libor, really) with little or no regard to whether there is any actual metal out there to buy or sell.

Isn't systemic fraud wonderful?

Tue, 07/10/2012 - 14:43 | Link to Comment Pladizow
Pladizow's picture

I love Golden Chinese Turkey's!

Tue, 07/10/2012 - 15:05 | Link to Comment Precious
Precious's picture

During the opium wars, China told Britain, you're only borrowing this gold, okay?  We'll be back for it once we come down.

Tue, 07/10/2012 - 15:25 | Link to Comment zaphod
zaphod's picture

I don't know what everyone is complaining about, the UK's currency is the only one is call the "pound" this obviously means it is backed by something that has real value.

That fact that the central bank with the currency called the "pound" has relatively zero gold/GDP is nothing to pay attention to.

Tue, 07/10/2012 - 15:43 | Link to Comment ZerOhead
ZerOhead's picture

British currency notes used to be denoted as 'pound sterling' for the nations creditors.

Pretty soon it will be just be 'pound salt'.

Tue, 07/10/2012 - 15:49 | Link to Comment francis_sawyer
francis_sawyer's picture

"pound" = go pound sand...

Tue, 07/10/2012 - 16:10 | Link to Comment ZerOhead
ZerOhead's picture

Salt hurts more... no questions please... just trust me.

Tue, 07/10/2012 - 17:43 | Link to Comment francis_sawyer
francis_sawyer's picture

KILL BILL 2?

Tue, 07/10/2012 - 23:30 | Link to Comment Atlas Shrugged
Atlas Shrugged's picture

I'm in China right now and EVERY BANK sells gold. They always have it displayed in glass cabinets in the corner. They each have around 2 kg on display (on average) and I've been told they have a lot more 'out back'. I make it a habit of asking how popular gold is to customers and the managers confirm that a lot of people are buying.

Tue, 07/10/2012 - 16:07 | Link to Comment ali-ali-al-qomfri
ali-ali-al-qomfri's picture

pound of flesh

Tue, 07/10/2012 - 16:20 | Link to Comment Black Forest
Black Forest's picture

Ned Naylor-Leyland on CNBC: “Gold May Have Been Manipulated Like Libor”:

http://maxkeiser.com/2012/07/09/ned-naylor-leyland-cnbc-gold-may-have-be...

 

Tue, 07/10/2012 - 14:44 | Link to Comment yabyum
yabyum's picture

Fantasy Gold: I like it! I can almost hear midget tranny porn yelling "Da paper, da paper" and ringing the bell.

Tue, 07/10/2012 - 14:56 | Link to Comment Shocker
Shocker's picture

Those are some pretty insane figures/charts above. So is China importing Gold because of economic / currency problems ahead?

So much going on, in every part of the economy Local and Global.

http://www.dailyjobcuts.com

Tue, 07/10/2012 - 15:06 | Link to Comment MachoMan
MachoMan's picture

Our currency or theirs?

Tue, 07/10/2012 - 15:11 | Link to Comment Shocker
Shocker's picture

Not a clue, just import gold has to mean something like that correct?

Tue, 07/10/2012 - 15:18 | Link to Comment MachoMan
MachoMan's picture

It was a poor joke...  but, I think it's more of a symptom than preparedness...  I guess everyone could just focus on one particular bubble with the cheap money, but I think the money tends to be distributed a bit better.  In the end, there are carrying costs for jumping on the commodity train...  e.g. deteriorating ghost towns.

Think of it kind of like brewster's millions...

Tue, 07/10/2012 - 15:29 | Link to Comment ATM
ATM's picture

They're buying gold because what else are they going to do. buy more USTs at 1.5% yield? Buy euros, pounds, or the Swiss?

They're buying gold because they have to. They can only load up on so many resources at one time and gold is the best liquid investment they can make.

Tue, 07/10/2012 - 15:57 | Link to Comment AmCockerSpaniel
AmCockerSpaniel's picture

And why did the chicken cross the road?

Tue, 07/10/2012 - 16:27 | Link to Comment youngman
youngman's picture

I would add because the WANT to...who would want anymore paper when you see what is coming...it seems though they have picked up the pace quite a bit...so when will the Comex fail....not be able to deliver and metal....and London too....the sale of the London exchange stinks....and there has been very very little dealer movement in the Comex...when does the paper market fail....or will it ever since its just a day trade..

Tue, 07/10/2012 - 19:12 | Link to Comment Jungle Jim
Jungle Jim's picture

"...so when will the Comex fail....not be able to deliver and metal....and London too....the sale of the London exchange stinks....and there has been very very little dealer movement in the Comex...when does the paper market fail....or will it ever since its just a day trade...?"

Yes, when. That's exactly what I'd like to know. It can't happen soon enough for me. I've grown old and lame waiting.

I and I alone know where a fair amount of gold and silver is buried. (There is no map.)

It would be nice if it were suddenly "worth" what it's really worth once again. Right now it's just some stuff under a few feet of dirt and gravel in a lonely place. In a way it's not even worth its weight in paper fiat currency now. I mean, a $100 bill weighs one gram. One gram of gold is only "worth" about $50 now.

 I don't even know what silver goes for per gram. Not much. Hardly worth the trouble and risk of digging up.

Jim

Tue, 07/10/2012 - 19:48 | Link to Comment PiratePawpaw
PiratePawpaw's picture

For an ounce of gold I can get a good AR and 2000rds of ammo.

With a good AR and 2000rds of ammo I can protect or acquire alot of ounces of gold.

Just sayin........

Tue, 07/10/2012 - 20:56 | Link to Comment Jungle Jim
Jungle Jim's picture

I already had two (2) ARs (and a number of other rifles and shotguns and handguns, and I don't honestly know how many magazines or how much ammunition, plus various accessories, as well as ballistic helmets, body armor, etc., and also some non-perishable food) before I ever bought my first Mercury dime or my first tenth of an ounce of gold.

The big thing I lack is real estate, especially a place that's both defensible and self-sufficient. I was rather hoping that if gold and silver broke free of the price suppression scheme they might enable me to finally buy a good place. For now I can only dream on. 

Tue, 07/10/2012 - 15:58 | Link to Comment midgetrannyporn
midgetrannyporn's picture

Call me out if you like just don't whine about prices like the rest of the goldbugs on here do when it crashes.

Tue, 07/10/2012 - 14:47 | Link to Comment metastar
metastar's picture

The gold game will continue until ...

   THERE IS A RUN ON THE CENTRAL BANKS BY CENTRAL BANKS.

Tue, 07/10/2012 - 15:15 | Link to Comment MachoMan
MachoMan's picture

Who got Greece's gold?

Tue, 07/10/2012 - 16:13 | Link to Comment HoofHearted
HoofHearted's picture

Who else? JP Morgan....

Tue, 07/10/2012 - 16:31 | Link to Comment Mesquite
Mesquite's picture

Or Libya's ..?

Tue, 07/10/2012 - 18:32 | Link to Comment cowdiddly
cowdiddly's picture

or the tons of gold in the twin towers that vaporized

Tue, 07/10/2012 - 14:52 | Link to Comment knukles
knukles's picture

These fraudsters and manipulators should get caught, tried (as in guilty, heretics) and sentenced in an Islamic court.

Oh, BTW, was that metric about the UK's gold pre or post Brown's sale?
Helluvajob, Brownie

Tue, 07/10/2012 - 14:57 | Link to Comment goldm3mb3r
goldm3mb3r's picture

Thanks Gordo, you total penis.

Tue, 07/10/2012 - 14:59 | Link to Comment spentCartridge
spentCartridge's picture

That miserable Scottish son of a bitch should be castrated and thrown into the Firth of Forth on a cold day.

 

... with the rest of his psychopathic family.

Tue, 07/10/2012 - 15:58 | Link to Comment PoorByChoice
PoorByChoice's picture

I wish posters on this site would stop using the words Gordon and GOLD together.

Your not doing my angina any good at all folks!

 

Wouldn't mind but I never voted for these psychopathic morons and still have to suffer their stupidity.

I'd join in the chorus re drowning in the firth but I have to answer the door now

 oh!

no need, the nice pleecemen have simply kicked it off it's hinges....

Oh Jerusalem

Tue, 07/10/2012 - 21:43 | Link to Comment ZeroAvatar
ZeroAvatar's picture

I have that Compact Disc. 'Gordon's Gold'.  OH!  Sorry, PBC!

Tue, 07/10/2012 - 14:52 | Link to Comment diogeneslaertius
diogeneslaertius's picture

this is really the fundamental fraud problem

 

whether we are talking about money, securities or any other asset class today, it is the fundamentals debasement, through instruments, programs, and outright chicanery that should concern us most.

 

all other arguments devolve on shit like paper/digital vs physical

Tue, 07/10/2012 - 14:54 | Link to Comment jazze
jazze's picture

People who are buying paper fantasy gold do not want real physical gold, they want paper fantasy gold exposure. These guys are not demand for physical gold. If they wanted physical gold, the price would rise.

Tue, 07/10/2012 - 15:01 | Link to Comment moskov
moskov's picture

could you tell me why your avatar is a Chinese flag on a German Flag? what's that representing for?

Tue, 07/10/2012 - 15:15 | Link to Comment Manthong
Manthong's picture

a symbol of all the German manufacturing (and expertise)  that is now in and owned by China?

Tue, 07/10/2012 - 15:17 | Link to Comment Gavrikon
Gavrikon's picture

I dunno, but there's sure a hell of alot of those little yellow guys running around in Frankfurt.  I can'y spit out my 6th floor window without hitting one on the sidewalk below.

Tue, 07/10/2012 - 15:24 | Link to Comment HungrySeagull
HungrySeagull's picture

Oh Really?

It's the Steel or Property they must be after.

Steel would be my guess, if getting ready for war... that Krupp will come in REAL handy.

Tue, 07/10/2012 - 15:52 | Link to Comment francis_sawyer
francis_sawyer's picture

They're just there for the 'Love Parade'...

Tue, 07/10/2012 - 15:33 | Link to Comment OhOh
OhOh's picture

BRICS + GERMANY = Strength

Tue, 07/10/2012 - 15:04 | Link to Comment Citxmech
Citxmech's picture

The fact that paper gold can depress the price of physical is a given - what baffles me is that the premiums over spot for physical are not climbing.  One would think that in a supposedly tight market for deliverable metal we'd see a decoupling from the paper price signaled by dramatically increasing premiums. . .

Tue, 07/10/2012 - 15:25 | Link to Comment HungrySeagull
HungrySeagull's picture

It aint tight yet.

The only time gets tight is when the Bullion Sources put "Limited stock" or ration the physical.

Then everyone buys hand over fist.

Tue, 07/10/2012 - 15:38 | Link to Comment Citxmech
Citxmech's picture

That's the only explanation that makes sense.  Even if one believes the published numbers regarding world-wide gold stock-piling (I assume that stealth accumulation is rampant as well) one has to think that we'll reach that point of tightening sometime in the very near future. .

Tue, 07/10/2012 - 15:59 | Link to Comment Its_the_economy...
Its_the_economy_stupid's picture

Gold premiums aren't rising, but silver eagle premiums are up 25% from 1 year ago

Tue, 07/10/2012 - 21:00 | Link to Comment HungrySeagull
HungrySeagull's picture

The Premiums stayed the same at my vendor, however the delivery prices charged jumped three to 4 times what it was before.

It's easier to get it off the bay with free delivery and cheaper too if you are careful.

Tue, 07/10/2012 - 15:25 | Link to Comment MunX
MunX's picture

But banks leveraged 100 to 1 allow them more access to capitol to give loans to students and stuff. Bankers are our friends.

Tue, 07/10/2012 - 15:47 | Link to Comment Stuart
Stuart's picture

It's the mining companies that are the greater fools.   They have to be a special bread of patsies to go along with the comex price, london price or the spot price anywhere.   They're like sheep.  Why don't they just stand up for their industry and refuse to sell at these prices.   Above basic cashflow reqmnts, don't sell any gold at this price, just stockpile it.   More need to do this.   

Tue, 07/10/2012 - 16:19 | Link to Comment Bastiat
Bastiat's picture

Miners who finance through debt are almost always forced to hedge or sell production forward. ABX took it a step beyond that in the 90s or early 00's and essentially became more of a hedge fund, as Fekete called it.

Tue, 07/10/2012 - 16:21 | Link to Comment emersonreturn
emersonreturn's picture

banks and shareholders discourage witholding product...short term thinking unquestionably.

Tue, 07/10/2012 - 17:57 | Link to Comment FranSix
FranSix's picture

All mining companies have certain amounts of inventory at any given time.  But to expect that they somehow award themselves better by stockpiling all production is totally unrealistic.  

Stockpiling occurs at the banking or savings level, not at the production level.  Gold is made to be stockpiled as an asset and leased out in quantity, only to be bought back almost immediately.  

Physical gold brought to market introduces arbitrage risk, meaning people will leverage futures to buy gold.  Prices then rise.  When there is little gold in actual production supply, then prices actually decline as the sheer volume of short selling trades expect no takers in demand.  Miners are doing correctly by supplying the market with physical gold, and can only expect a premium when aggressively marketing their gold to interested parties.

By comparison, copper or oil stockpiliing is patently insane.

Tue, 07/10/2012 - 16:23 | Link to Comment Al Huxley
Al Huxley's picture

+100 It's as though the mining companies have the ability to find gold (at least the better ones do) but don't have any fucking clue about the value of the stuff they're digging out of the ground.  Honestly, given the rampant stupidity of the executives and boards running these companies, they deserve the shit-kicking the market is giving them.

Tue, 07/10/2012 - 17:42 | Link to Comment DaveyJones
DaveyJones's picture

Quintus, that was the comment of the week.

All the systems rely on trust. We are in deep

Tue, 07/10/2012 - 14:37 | Link to Comment ciscokid
ciscokid's picture

Paper gold is dropping.

Tue, 07/10/2012 - 14:45 | Link to Comment boogerbently
boogerbently's picture

Gold PRICES......per ounce....are dropping, *$%^@#(&.

Big BUYING should raise prices, it isn't, how come ???

Tue, 07/10/2012 - 14:50 | Link to Comment Jack Sheet
Jack Sheet's picture

Yes - and there are at least 100 ozs of paper gold claims for every 1 oz of physical gold. So the paper gold price can go up and down like a groom's dick until a real market price is established for the physical.

Tue, 07/10/2012 - 17:46 | Link to Comment DaveyJones
DaveyJones's picture

a 60 year old groom....on Viagra

until the medics are called

Tue, 07/10/2012 - 21:01 | Link to Comment HungrySeagull
HungrySeagull's picture

The words "Drop your drawers so we can remove the blood from your member by a large needle at the base..."

If that does not "lower the flag" then you are really in trouble.

Tue, 07/10/2012 - 14:45 | Link to Comment Peter Pan
Peter Pan's picture

Yes, gold is dropping and one day it will fall on the heads and toes of those who are fighting it.

Tue, 07/10/2012 - 14:59 | Link to Comment resurger
resurger's picture

but Paul Krugman told me "why would he buys gold at top's?!"

 

"

Do I believe that gold and silver make for valuable investments?  Well, they are used in technological devices, but why not buy apple if you want technology?  Or a HC stock.  Then you get opportunity for growth AND yield.  Gold is too speculative an investment.  Besides, it is at a high, why would I buy a top?

The dollar has become stronger, and although that isn't helping our exports, it isn't a bad thing short term.  Over the long run we should create growth by increasing exports.  In due time, we will."

 

http://www.zerohedge.com/news/greek-psi-terms-leaked-imply-greek-redefau...


Tue, 07/10/2012 - 15:41 | Link to Comment Stoploss
Stoploss's picture

$275 / oz was an all time high, by the way...

Tue, 07/10/2012 - 15:58 | Link to Comment DosZap
DosZap's picture

Anyone believeing the Gold holdings as shown for China is in the Twilight Zone.

They likely have as much as we do, maybe more.

They keep their REAL info close to the vest. They are going to spring the Yuan, backed by gold,or partially hide n watch.

Tue, 07/10/2012 - 16:26 | Link to Comment Al Huxley
Al Huxley's picture

Just remember that outside of this forum it's considered bad form to suggest that the Chinese are in any way aware of the massive US debt and deficit, are not in any way planning to exploit their growing power in the world, and are content to be America's lackeys forever, sacrificing their own standard of living so they can trade cheap manufactured goods for paper.

Tue, 07/10/2012 - 17:48 | Link to Comment TeMpTeK
TeMpTeK's picture

Move over english.... "Press 1 for Chinese"

Tue, 07/10/2012 - 21:02 | Link to Comment HungrySeagull
HungrySeagull's picture

Press 2 for non Chinese.

Thu, 07/12/2012 - 09:45 | Link to Comment thefedisscam
thefedisscam's picture

That is WHY China bougth MORE!

Tue, 07/10/2012 - 14:33 | Link to Comment slackrabbit
slackrabbit's picture

West spends money killing people

East saves money and buys gold.

And we think they are the commies...

Tue, 07/10/2012 - 15:43 | Link to Comment Totentänzerlied
Totentänzerlied's picture

False comparison. West and East are identical in their greed, depravity, destruction, immorality, etc. Both excel at crime in their own ways.

Tue, 07/10/2012 - 14:34 | Link to Comment Gringo Viejo
Gringo Viejo's picture

When all is said and done, only gold & silver remain as safe haven.

Tue, 07/10/2012 - 14:54 | Link to Comment Peter Pan
Peter Pan's picture

And the funny thing is that Chinese purchases of gold count as imports when in actual fact they are exporting paper dollars in return for real money. That's how screwed up our understanding is. The bottom line is that once you include gold holdings of China in their forex holdings it will become apparent who is the smarter nation.

Tue, 07/10/2012 - 14:34 | Link to Comment fuu
fuu's picture

Good call Mr. Dabolina. Well played.

Tue, 07/10/2012 - 15:02 | Link to Comment MunX
MunX's picture

Bob wrote this?

Tue, 07/10/2012 - 14:34 | Link to Comment THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

The fraud just keep on spinning on GOLD/SILVER and now CARS!

Fail: Government Motors Inflates Sales by Selling to...the Government

http://economicaldepression.blogspot.com

Tue, 07/10/2012 - 15:55 | Link to Comment quasimodo
quasimodo's picture

Go panhandle somewhere else, maybe Vegas

Tue, 07/10/2012 - 14:34 | Link to Comment FranSix
FranSix's picture

Canada, zero.

Tue, 07/10/2012 - 14:40 | Link to Comment bigwhiffa
bigwhiffa's picture

Check out the current stats from the Bank of Canada.

http://www.bankofcanada.ca/rates/related/international-reserves/

Tue, 07/10/2012 - 15:52 | Link to Comment alfred b.
alfred b.'s picture

 

    ...but thank G-O-D for that 8k + of those SDRs...I was worried there for awhile...(sic)

 

Tue, 07/10/2012 - 18:10 | Link to Comment FranSix
FranSix's picture

If the Canadian central bank took all of its U.S. forex reserves and converted it to gold, then they would at least have made a good decision which might eventually show a surplus especially in the depths of the gold price correction here.  Buying approx. 700 tonnes and taking delivery to the mint is not totally out of the question, either.

I really wonder if policy wonks get it that on the heels of a housing bust, the central bank had better be prepared to bolster its assets to be able to serve as a lender of last resort.  I also wonder if they get it that the U.S. dollar is not the reliable foundation it used to be, or that if a monetary crisis occurs in the world, that the central bank will require a hefty balance weighted towards gold.

Tue, 07/10/2012 - 14:35 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

Gold is a mineral. That is all.

Tue, 07/10/2012 - 14:40 | Link to Comment Peter Pan
Peter Pan's picture

Now how long did it take you to come up with that one? Or did you cheat by looking up Wikipedia?

Tue, 07/10/2012 - 14:45 | Link to Comment Pladizow
Pladizow's picture

Fuck Wiki, if something is on the periodic table, Im fairly sure its an element.

Tue, 07/10/2012 - 14:40 | Link to Comment Quintus
Quintus's picture

Sure...and paper money is just wood fibre mixed with linen and with a pretty picture stamped on it.

What matters is what people BELIEVE it is.  

A good part of the world does not buy into the 'Barbarous Relic' propaganda put out by the Western moneycentres.

Neither do the western central banks, I suppose, given how much of the stuff they own and are still buying.

Tue, 07/10/2012 - 14:49 | Link to Comment ihedgemyhedges
ihedgemyhedges's picture

Pretty picture????  Name one..........Andrew Jackson????????

Now if they put Lauren Lyster on there...............

Tue, 07/10/2012 - 14:59 | Link to Comment iDealMeat
iDealMeat's picture

$ 2

 

Always liked that one..  Especially the backside.

 

Tue, 07/10/2012 - 16:13 | Link to Comment fockewulf190
fockewulf190's picture

Too bad Ron Paul isn't on the front side of that bill.

Tue, 07/10/2012 - 17:24 | Link to Comment fuu
fuu's picture

He'll be on something, look what they did to Andy.

Tue, 07/10/2012 - 16:27 | Link to Comment emersonreturn
emersonreturn's picture

is it possible china, russia, iran, india after trading in gold for a period of time may begin to back their currencies with a gold standard...how would TPTB attempt to curtail this?  would TPTB move then to control or head the return to it internationally rather than allow control to move to another sphere?

Tue, 07/10/2012 - 16:00 | Link to Comment Au Shucks
Au Shucks's picture

"What matters is what people BELIEVE it is."

 

Well, that is true for currencies and collectibles, but money is not a belief, but rather a definition.  The qualities inherent to gold and silver are what make them money, not that people believe they're money.  This said, people have been indoctrinated and mis-educated to where they confuse money with currency, but the irrefutable laws of the free market (which is still there, albeit dressed up like a french whore via our friendly governents and PTBs) dictate that money will always return to it's rightful value and place at the end of each fiat debt usary cycle.  We're at that point now... days/months much more probable than years.

Tue, 07/10/2012 - 18:54 | Link to Comment Jungle Jim
Jungle Jim's picture

"We're at that point now... days/months much more probable than years."

I hope you're right. I really do. I need something to change, fast.

Jim

Tue, 07/10/2012 - 16:03 | Link to Comment DosZap
DosZap's picture

Neither do the western central banks, I suppose, given how much of the stuff they own and are still buying.

EXACTLY, you have to be stupid to not see WHAT the CB's are doing, and it is not hoarding currencies,or USD's.

 

Tue, 07/10/2012 - 16:40 | Link to Comment Mesquite
Mesquite's picture

Make that ALL Central Banks..

Tue, 07/10/2012 - 14:42 | Link to Comment Gringo Viejo
Gringo Viejo's picture

And Gene is a vegetable. That is all.

Tue, 07/10/2012 - 14:56 | Link to Comment falak pema
falak pema's picture

lets split the difference : golden vegetable with a mineral taste.

Tue, 07/10/2012 - 15:31 | Link to Comment viahj
viahj's picture

squash?

Tue, 07/10/2012 - 16:06 | Link to Comment PoorByChoice
PoorByChoice's picture

No, it's elemental dear fellow.........

Tue, 07/10/2012 - 16:44 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

GeneMarchbanks.....

.........you are an Idiot.That is all.

Tue, 07/10/2012 - 21:22 | Link to Comment jerry_theking_lawler
jerry_theking_lawler's picture

so is calcium....try living without it...you ass pimple fuck wad.

Tue, 07/10/2012 - 14:35 | Link to Comment Bartanist
Bartanist's picture

The Chinese use the gold to make bullets and IR/heat shiels.

Tue, 07/10/2012 - 15:57 | Link to Comment francis_sawyer
francis_sawyer's picture

They used to... But Scaramanga & Hi Fat are now dead...

Tue, 07/10/2012 - 14:37 | Link to Comment Debtless
Debtless's picture

The gold & silver beach balls will not stay suppressed underwater forever. Sooner or later, when the DXY has some real competition in it, the ball will jump out of the water like it did last summer. Keep pulling your phyz out of the system at these sale prices ladies.

Fucking criminals.

Tue, 07/10/2012 - 14:38 | Link to Comment Bartanist
Bartanist's picture

Isn't one of the problems that most of the US gold was sent to the US from China for safekeeping pre-WWII?

The US gold is really Chinese gold and the Chinese are being allowed to buy it back with excess fiat Benji-Bucks.

And THEN they use is for IR shields on the space cruisers and deep bunkers.

Tue, 07/10/2012 - 14:54 | Link to Comment boogerbently
boogerbently's picture

Wow!

Ha Ha Ha !

Tue, 07/10/2012 - 14:59 | Link to Comment CrazyCooter
CrazyCooter's picture

No, the 8k tons is US gold, down from a peak of 20k tons that the US bled off during the massive expansion in spending during and after Vietnam, man on the moon, etc. Nixon closed the gold window to stop the bleeding, which would have seen the 8k tons become 0k tons pretty quickly.

If I am not mistaken, and I don't have a source handy, the FRBNY holds about 4k tons, a lot of which is the stuff you are talking about (European gold, etc). So, yes US bank vaults house a lot of foriegn gold (for good reason at the time), but the 8k tons does not include these holdings.

Regards,

Cooter

Tue, 07/10/2012 - 15:59 | Link to Comment francis_sawyer
francis_sawyer's picture

For all anyone knows... 50 years ago someone might have have loaded up a Saturn 5 rocket and uploaded the shit into an Earths orbit...

Tue, 07/10/2012 - 16:15 | Link to Comment PoorByChoice
PoorByChoice's picture

LOL!!

I can tell your not a rocket scientist fs....

The S5 was a mother of a rocket but you would need to light the heavens up like the 4th of frickin July to get that amount of GLD up there!

The scramble for re-entry material would be exciting tho, it's rainin GLD courtesy of NASA and the US taxpayer!

Bernanke copter eat your heart out LOL! 

 

Tue, 07/10/2012 - 17:46 | Link to Comment francis_sawyer
francis_sawyer's picture

OK... PBC... (this is just 4 entertainment)... What's the PAYLOAD of a 'Saturn V'?...

Tue, 07/10/2012 - 22:16 | Link to Comment HungrySeagull
HungrySeagull's picture

Irrelevant if one used the entire USD Paper Money as fuel.

Me thinks cheaper too.

Even today that was quite a rocket.

But nothing like the Soviet Monsters that lifted half as much.

Tue, 07/10/2012 - 14:38 | Link to Comment Bastiat009
Bastiat009's picture

A few weeks ago I read on this site that China was lying about everything.

Tue, 07/10/2012 - 14:46 | Link to Comment Tyler Durden
Tyler Durden's picture

They most certainly are lying... about their official gold holdings, a number which has not been updated in years, and which when updated to reflect the reality, which is likely in the 3,000+ tons range, will cause quite a few to scratch their heads.

Tue, 07/10/2012 - 14:56 | Link to Comment eclectic syncretist
eclectic syncretist's picture

It will cause some to get more agitated than just head scratching.  This is an obvious potential paradigm shift in global finance.  The reason the dollar was chosen to be the world-wide reserve currency was because the US had the world's largest gold reserves.  China is now clearly on a trajectory to change that, and is being pretty open about it.  At this pace they could overtake the US by ~2015 in terms of legitimate, historically proven capital reserves.

This has to be causing a real shitstorm in the back rooms of the Central Bankers, as it could culminate in their Guernseys running dry.

Tue, 07/10/2012 - 14:58 | Link to Comment Stuart
Stuart's picture

if gold becomes an open tool/weapon of a cold war, does that help gold bulls though?

 

Tue, 07/10/2012 - 15:09 | Link to Comment bigwhiffa
bigwhiffa's picture

I would argue that it would help gold bulls more then hinder them.

Remember the Golden Rule?

He who has all the gold makes all the rules.

Tue, 07/10/2012 - 15:23 | Link to Comment TN Jed
TN Jed's picture

He who HOLDS the gold makes all the rules.

Fixed!

Tue, 07/10/2012 - 15:16 | Link to Comment eclectic syncretist
eclectic syncretist's picture

in a relative sense it's great for gold bulls because if/when any realignment comes it will involve big devaluations in currencies relative to gold.

The downside could be that the gold bulls merely preserve their purchasing power rather than expanding it, but they will not suffer the enormous losses that are coming to people who do not own gold, silver, or land.

Tue, 07/10/2012 - 15:10 | Link to Comment Bastiat009
Bastiat009's picture

This may very well be true. And I am scratching my head and not only because US Treasuries look far more safer than gold FOR NOW. 

Tue, 07/10/2012 - 16:29 | Link to Comment Panafrican Funk...
Panafrican Funktron Robot's picture

That's not a crazy thought process, I think the likely accurate thinking is controlled crash followed by another paperfest.  Controlled crash = +govt. bonds.  Paperfest = +everything in nominal terms (including govt. bonds if they are the conduit for the paperfest), but most strongly with gold priced in (insert fiat currency here).  

Thu, 07/12/2012 - 11:45 | Link to Comment Colonial Intent
Colonial Intent's picture

yes but only if they manage to save the current system, europe is not the end of this, if they ever get their shit together then the usa will be Goldamn sachs next target, labor and capital are transnational now.

Tue, 07/10/2012 - 15:31 | Link to Comment Getting Old Sucks
Getting Old Sucks's picture

Uh, and when was the last time we checked our's out?

 

BTW, thanks for all you do.

Tue, 07/10/2012 - 16:52 | Link to Comment AE911Truth
AE911Truth's picture

just weeks away from a full House vote on Ron Paul’s Audit the Fed bill (H.R. 459/S. 202), and I’m counting on your help.

This Thursday, July 12, Campaign for Liberty is holding an absolutely critical “Audit the Fed Moneybomb” to help turn up the heat on Congress to finally pass H.R. 459/S. 202.

Tue, 07/10/2012 - 15:39 | Link to Comment mick_richfield
mick_richfield's picture

One thing I absolutely cannot get my masters in the future to understand is that in this time, just before the Collapse, China and the US are both lying about their gold reserves -- but in opposite directions.

I'm glad to have the 3000+ ton estimate for No Bullshit China.  I wish I could get a similar estimate for No Bullshit US.  Right now my own not-very-educated best guess is 0 tons and 0.000 ounces -- unless you count the negative couple thousand tons that the US was holding for Deutschland.

 

Tue, 07/10/2012 - 16:55 | Link to Comment Getting Old Sucks
Getting Old Sucks's picture

Hope it's not that bad but since we haven't verified in over 60 years, why on earth would the rest of the world believe us?  I keep saying that the curtain will someday open all the way, and then BOOM!  Government, getting nervous yet?  You better be!

Tue, 07/10/2012 - 21:20 | Link to Comment Cathartes Aura
Cathartes Aura's picture

amrkn global military occupation bases.

helps with the "belief" systems. . . that and bribing those in control.

Tue, 07/10/2012 - 18:17 | Link to Comment cowdiddly
cowdiddly's picture

Exactly, everone forgets China is also the number one gold producer  and quit exporting a drop since 2008. Ive been keeping tabs and I figure they are getting close to 4000 tons. They are currently the number 2 holder of gold because Germany most likely ain't gettin theirs back. Thats if Tricky Dicky did not sell the gold to finance Vietnam. I would not want Fort Knox audited either. Remember those tungsten bars China bught from the good Ole USA?

Tue, 07/10/2012 - 21:37 | Link to Comment cowdiddly
cowdiddly's picture

dp Sorry

Tue, 07/10/2012 - 14:48 | Link to Comment tmosley
tmosley's picture

This is Hong Kong government data, not Chinese.  Yes, there is a difference.  No, that does not make it credible or not credible.

Tue, 07/10/2012 - 14:40 | Link to Comment FLHRS
FLHRS's picture

It will drop until it doesn't.  Then it will rise until it doesn't.

Tue, 07/10/2012 - 15:18 | Link to Comment Citxmech
Citxmech's picture

Do you have monthly market reports I can subscribe to?

Tue, 07/10/2012 - 14:42 | Link to Comment Stuart
Stuart's picture

Anybody take the time to think perhaps it's the Chinese that are suppressing the price of bullion and JPM et al are just acting as agents carrying out their marching orders... Sure, benefiting via their own prop trading but who has the biggest advantage to gain from keeping prices low, .... A DETERMINED and LARGE BUYER!

Tue, 07/10/2012 - 14:51 | Link to Comment Pladizow
Pladizow's picture

See: Ted Butler

Tue, 07/10/2012 - 14:57 | Link to Comment boogerbently
boogerbently's picture

Gold price held down.

Sovereigns buy gold.

Global return to a gold standard.

Gold price allowed to rise.

Currency worth more the higher gold price goes.

Tue, 07/10/2012 - 15:27 | Link to Comment Citxmech
Citxmech's picture

Au / Monetary Base = value/monetary unit.  Manipulating the valuation of gold upward with a stable monetary base makes no sense.  To increase $ value in terms of Au you need to reduce the supply of paper.

Of course the SBs will print to collapse, so it's really a moot point.  At that point Au will be the currency.  The real "valuation" for Au is more likely:  Above Ground Au stockpiles / World Population with some kind of constant correcting for standard of living/avg consumption.  This would give you a more workable trading value.

Tue, 07/10/2012 - 15:39 | Link to Comment viahj
viahj's picture

in booger's scenario, the $ will be replaced as will all other current fiats.  one world global currency is the plan, controlled by the BIS and initially and breifly linked to an asset basket of which gold will be the largest %.

Tue, 07/10/2012 - 15:58 | Link to Comment Citxmech
Citxmech's picture

If Ponzi banking practices are retained in said "new" monetary system (fictional reserve banking, debt-based monetary creation, etc.) any use of paper as a real, one-to-one proxy for gold will be short-lived.  TPTB can try to reset this rigged market all they want but economies are ultimately bounded by supply, not demand - and you can't print supply.

Tue, 07/10/2012 - 15:32 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

and the Fed Audit will reveal that it is driving aggregate demand for paper PM and playing exchange badmitton with JPM et al.

Tue, 07/10/2012 - 14:46 | Link to Comment eclectic syncretist
eclectic syncretist's picture

If this pace merely levels off and China imports 650 tons, coupled with the >350 tons they are expected to produce internally, they will acquire more than 40% of the global output this year (~2500 tons).  This is where the real gauntlet is being thrown down.  The question is, how will the central bankers respond to this obvious challenge to their monetary authority?

 

Tue, 07/10/2012 - 14:43 | Link to Comment Alpo for Granny
Alpo for Granny's picture

In an unrelated note there was also a record amount of thread and fabric sold in China during those same 5 months.

Tue, 07/10/2012 - 15:16 | Link to Comment Shigure
Shigure's picture

Very subtle Alpo for Granny, nearly missed that one. Lol

Tue, 07/10/2012 - 14:43 | Link to Comment toady
toady's picture

Now that is scary.

Every time I think I'm set someone ups their game. These bastards are not messing around!

Tue, 07/10/2012 - 14:44 | Link to Comment Jason T
Jason T's picture

some pictures of the next worlds financial center. http://vincentloy.wordpress.com/2009/04/19/the-process-to-final-design-o...

Tue, 07/10/2012 - 14:54 | Link to Comment Pladizow
Pladizow's picture

Pass the baton: 1807 - UK, 1907 - USA, 2007 - Asia

Tue, 07/10/2012 - 15:56 | Link to Comment mt paul
mt paul's picture

pass the bacon ...

 

Tue, 07/10/2012 - 14:44 | Link to Comment lsbumblebee
lsbumblebee's picture

U.S. reserves have been personally audited by Bob Pisani.

Tue, 07/10/2012 - 14:55 | Link to Comment francis_sawyer
francis_sawyer's picture

"Geraldo" Piss on me

Tue, 07/10/2012 - 14:59 | Link to Comment boogerbently
boogerbently's picture

I saw that !

They were in a "blacked out" car, but someone as insignificant as the driver knew the location !!!

Too Funny.

Tue, 07/10/2012 - 15:05 | Link to Comment lsbumblebee
lsbumblebee's picture

They made sure he was driving blindfolded.

Tue, 07/10/2012 - 14:44 | Link to Comment falak pema
falak pema's picture

either china is a goofy gold bug or china is the first to understand that the fiat shit storm is about to unfurl and the USD reserve has its days numbered all soaked in debt devaluation.

Tue, 07/10/2012 - 14:47 | Link to Comment Ignorance is bliss
Ignorance is bliss's picture

Who is selling all this Gold to china and India? I didn't realize there was so much readily available for delivery. Can someone shine some light on this? Lastly, how much physical gold is left ?

Tue, 07/10/2012 - 14:52 | Link to Comment gratefultraveller
gratefultraveller's picture

You might want to check what Jim Willie has to say about that. Not sure it is true what he says, but it seems to make sense, at least partially

http://www.financialsense.com/contributors/jim-willie

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