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Gold Down As China Tightens Controls
It appears the PBoC is stepping up the monitoring and management of their gold reserves. Headlines, via Bloomberg, suggest controls tightening on the trading of gold away from official channels:
*CHINA TO INCREASE MANAGEMENT OF GOLD TRADING, PBOC SAYS
*CHINA GOLD TRADING RESTRICTED TO SHANGHAI EXCHANGES, PBOC SAYS
*CHINA ORDERS UNAUTHORIZED GOLD TRADING PLATFORMS TO STOP: PBOC
*PBOC ASKS SHANGHAI GOLD, FUTURES EXCHANGES TO BOOST MANAGEMENT
Exchanging gold away from the all-seeing eye of government will not be tolerated...or perhaps it is just proper regulation and safeguarding of a rural public anxious to 'trade' their precious metals for Shanghai Condos...
Chart: Bloomberg
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Silver bitchez...
BTFD!
BTFG
Well......looks like we're f_ckin doomed amigos. Don't throw me in that briarpatch.
Heh heh.
"It appears the PBoC is stepping up the monitoring and management of their gold reserves."
Isn't this all about privately held gold, not reserves (which presumably the PBoC has in various vaults)?
Gold and silver bitchezz!! Shove it up your ass and smell your fingers if you're hungry!!
Smells chocolate... might have eaten too much of it... Happy holidays BITCHEZ
Be sure to remove the ass pennies first.
http://www.comedycentral.com/videos/index.jhtml?videoId=60669
Shutting down possible "Black Markets"?
Perhaps if they plan to loosen up the currency (ie gain acceptance as reserve status)), they would need to tighten the hold on Gold trading and consolidate to the official exchanges?
So the moral of the MF Global story is to only take delivery of physical if your broker is JPM or GS. The government would never allow them to fail.
The good news is that the government allowed Jon Corzine to fail....hell....it's a start.
The bad news is the CME......knows nothing.....sees nothing....and hears nothing.
.......so what else is new?
and worse news is so does the CFTC
I think everyone was already aware of that.
May be Jon Corzine did not fail after all. He knows the "business" ins and outs. He is an ultimate insider. He is not stupid either. For him and his bogus company even $1.2B+ of fiat money means nothing.
But he and his bogus company has stolen tons of customers' physical gold and silver and transferred it "legally" into the FED associates storage facilities.
If it falls to 1500 I'll buy more, other than that SSDD
me, too. 1,500 and i'll be buying like there's no tomorrow. for silver it's 24. come on, fuckers! gimme that discount!
Funny little spike on gold and silver...
*MOODY'S: RISING JAPAN DEFICIT PLACES DOWNWARD CREDIT PRESSURES
oh ho :)
Isn't it odd how a "traditional barbaric relic that has no use, intrinsic value, can't be eaten, and does not generate dividends or interest" needs to be so closely regulated?
and why not? they love to regulate what we do to our bodies and what we do in our own private lives, too. they know best since they're doing god's work and shit.
Silver Bells!!!
That's because this started happening at some of the smaller exchanges. http://i40.tinypic.com/2q33us9.png
They issued a warning about a month ago and demanded all new private exchanges to apply for a license. Perhaps this is a warning for them to apply or get shut down.
Jesse Livermore's Bucket Shops... Chinese edition... BITCHEZ
On the advice of Jesse Livermore....I've had my hands sewn to my ass.
The Vietnamese attempted to restrict trading in gold and banned it outright at one point, because it adversely affected the Dong.
The December, 2012 gold futures options chain has the largest open interest in the $2000/oz. strike price. The contract trades for $13.- In the same options chain, the highest bet is a strike price of $20,000/oz.
http://quotes.ino.com/options/?s=NYMEX_GC.M12.E
After the market crash of 2012, to commence sometime after the new year, gold and silver will rally again IMO.
If they want to save Obama, they have to seriously print. If they want to print to that extent, they will devalue fiat. If they wan't to devalue fiat, in addition to printing they will tie fiat to gold and ramp gold prices to the moon. So yeah, after MF Global, and the Chinese/Japanese agreement, and everything else, I'd say the markets will continue to go down until TPTB set the plan into motion, and then stocks will ramp like they did in 1934.
There's no open interest in the totally improbable strike price.
17,887 open interest on Gold $2,000 calls. That just blew my mind. Who are these people and what do they know?
http://quotes.ino.com/options/?s=NYMEX_GC.M12.E
The $20,000 strike just looks odd. Like a bet on going to gold standard. Maybe, the congress people know something and need to make a quick buck. lol
http://www.cnbc.com/id/45795192
xela2200
Who are these people and what do they know?
They are US,doesn't take a rocket scientist to know, there is no way to stop Gold from hitting 2k+, and well beyond within 12-36mos.
It will likely hit the pooper scooper when the mkt crashes(if allowed),and then the prices will drop back to 900-1k.
And I dare ya to try and find any physical at that price if it does.In'08,when it hit the skids, the PREMS were HIGHER , or at least as high as now.
This time,it will be far worse.
There is a major danger waiting on a FALL, and winding up empty handed w/a wad of fiat.(one needs to make a decision where to buy, and buy...........................then Livermore it.
Kills two birds with one stone, short term, by reducing domestic "competition" for physical, and long term, by increasing State tracking, and if necessary, expropriation, without any ugly buzz words like "1099". A happy New Year to all their Chinese bitchez, courtesy of the PBoC.
I currently own a precious metals brokerage firm in China, this rule is to close all ''illegal' gold/silver OTC trading. reason is these small companies are stealing clients money. Client makes money in these small firms and the owner of the firm shuts down and takes all the clients money and leave the country. So Chinese gov't is only allowing trading of gold and silver through 2 exchanges, one is shanghai gold exchange, the second is TianJing Precious Metals Exchange
The Chinese government "looking out for the little guy"? In atonement for the poisonous, air, water, toothpaste, pet food, sheet rock, et al? Or the Chinese investment scams that will ensure Muddy Waters and company have a full time employment guarantee until the whole house of cards comes down? Just like the SEC, CFTC, and one James “Assclown” Giddeons are looking after the best interests of investment clients in the US- who unfortunately did business with that "illegal" MF Global operation that was stealing clients’ money and shutting down...
The PBoC is looking after the STATE's interests, not the best interests of clients of investment firms seeking to trade in the gold market.
To the extent that "marketing" can spin it as the latter, they demonstrate an ability to learn quickly from the best, the marketing on this isn't just the usual cheap Chinese knockoff. However, if they had really awoken Christmas morning gifted with a desire to make the investing world a better place, they would issue an arrest warrant for one John Corzine, and send one of their execution vans to extraordinarily rendite him for trial, after all its not like there weren't Chinese clients of MF Global, and they were well enough capitalized and connected to be investing outside of China.
I've been very critical of the Chinese government on this site, but in putting myself in their place, I think the move to close the illegal exchanges makes sense.
The government knows what's coming, so unlike your government here in the West which is discouraging its citizens from buying gold, the Chinese are actually encouraging their citizens to protect themselves. They are absolutely terrified about what can happen when the system collapses and 3 billion people speaking 290 different languages find themselves with no bride, no job, and no money.
The relative morality of the government there is another issue entirely, but in light of what is going on here, I'm not getting into that discussion.
...and PAGE (the new exchange in Kunming) when it becomes operational next year. PAGE has had a notification up for a few months now that companies have been illegally setting up and trading gold under its name.
Either way this is only good for gold traders/those seeking delivery in China, to stop scams and provide more transparency/ guarantee. BTW, China Daily had a prominent article today stating via a senior central banker that China should BTFD:
"The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation," said Zhang Jianhua, director of the research bureau affiliated with the People's Bank of China (PBOC). http://www.chinadaily.com.cn/bizchina/2011-12/27/content_14332766.htm
Cool, thanks, good info.
Like I said above, I expected no change in the official pro-gold policy.
Those small gold/silver OTC trading companies sound like they are using the MF business plan.
Change, do you know if this is changing their plans for opening the Pan Asian Gold Exchange. I noticed a posting on their website that seemed to suggest that some scams were posing as the PAGE, using fake websites and then stealing money. Thanks.
Changie,
Do You know when the Pacific-Asian Gold Exchange is going to open?
You can't eat Shanghai condos.
How about NIKE shoes or FOXCONN stuff?
...and you can't live in the ghost cities either.
Not if you're alive anyway....they made them for the ghosts
Oh sure.....you can get in.....but the paperwork is a bitch....you just have to prove you're dead.
http://www.dailymail.co.uk/news/article-1339536/Ghost-towns-China-Satellite-images-cities-lying-completely-deserted.html
The Vietnamese government has been on the case for a while now.
http://www.goldchat.blogspot.com/2011/08/vietnam-speculators-cause-unsta...
http://www.goldchat.blogspot.com/2011/04/vietnam-government-resisting-mo...
Things hotting up on the Turkey Syria border. It appears that the Saudis and the Qataris are ganging up on Assad.
A Sunni Shia war instigated by Israel.
http://www.debka.com/article/21602
Just a matter of time before war descends on all of us and PM's ascend to heaven
i'm just buying miniscule amounts of gold for protection against hyperinflation. I really wish that I never have to use it to buy stuff in the future, but looking at all the sturm and drang in market and various government actions I'm growing less and less optomistic. After next payday I'm going to start shopping for some jewelry grade gold chain. Does anybody have a good source on that stuff?
My local coin shop has lots of gold jewelry selling at close to spot. Try one in your area.
I bought a gold wristband for the misses this newyear. 22k and the weight is more than the value i paid for it where it to be complete gold.
I cheched it out on google and a lot of gold jewls seem to be weighted up with other metals inside "for strenght".
It kind of shows that you never really know 100% of what you buy.
Fred C Dobbs
Make sure it's at least 18k,preferably 22k.
Family Dollar Store!
Good luck with that idea ChiComs.
http://vegasxau.blogspot.com
Given that today Zhang Jianhua, director of the research bureau affiliated with the People's Bank of China spoke to the need for China to increase its gold reserves, I looked for the Bloomberg articles. A search on Bloomberg for "GoldChina" or for "Gold PBOC" returned none of the specified articles. That is consistent with my daily look at major Chinese press (in English).I'd like a link or two for reference, please.
*CHINA TO INCREASE MANAGEMENT OF GOLD TRADING, PBOC SAYS
*CHINA GOLD TRADING RESTRICTED TO SHANGHAI EXCHANGES, PBOC SAYS
*CHINA ORDERS UNAUTHORIZED GOLD TRADING PLATFORMS TO STOP: PBOC
*PBOC ASKS SHANGHAI GOLD, FUTURES EXCHANGES TO BOOST MANAGEMENT
VERY SORRY BUT I MISSED SOMETHING. HOW DOES THIS EFFECT THE PRICE OF GOLD SINCE UNAUTHORIZED AND UNREGISTERED SALES IN CHINA HAVE NOTHING TO DO WITH THE PAPER GOLD CHARADE IN CHICAGO? SOMEONE FILL ME IN BECAUSE, I DO NOT QUITE UNDERSTAND THIS FUCKING GAME ANYMORE.
I DO NOT QUITE UNDERSTAND THIS FUCKING GAME ANYMORE.
Congrats.....that is the phrase that pays....and for that we'll be sending you the home version of the Mind F_ch game.
Read the article from Jim Willie that I posted below.
*CHINA GOLD TRADING RESTRICTED TO SHANGHAI EXCHANGES, PBOC SAYS
This is the best news possible for the American Gold holders. The Chinese want their Gold out of the hands of the Chicago gang and will force trading of Gold in China where there is some level of integrity. Thanks to the criminals like Dimon and Corizide for the heist of MF Global Silver which was the catalyst for this move. The US Comex is a sewer and is trusted by no one.
http://www.gold-eagle.com/editorials_08/willie122111.html
The Chinese need to stack a lot more gold, so they are the chief beneficiaries of gold supression and kicking the can. They are not going to take down anything until they have enough gold in their central bank to do business.
The Buddha says that if developed, the mind is supremely "pliable" and "workable." When the mind is defiled by the five hindrances, it is neither pliable, nor workable, nor luminous, nor perfectly concentrated for the destruction of the fetters and also compares the defilements of the mind to impurities in gold ore, implying that just as gold does not manifest its intrinsic radiance when it is in its raw state mixed with impurities, so is the intrinsic radiance of the mind not apparent when it is defiled by the hindrances.
For those of you who don't read Chinese, the key here is not China control gold trade. Physical buying is hot as ever (and gets hotter). The key here is to control bootleg exchanges rampant across the country. Correspondingly, Shanghai gold exchanges (the official exchange) tighten trader qualification requirements. In my opinion, not a bad thing. gold price drops for any reason. My personal blame is a broken COMEX. But hey, gold and silver can be among few investment vehicles left. So let them sell.
Must suppress the price so the money printing can speed-up.
http://www.youtube.com/watch?v=5V3kpKzd-Yw
listen to Kyle Bass comment on gold in this video. Tune into the video at minute 41.
Kyle Bass bought USD 1 billion of PHYSICAL gold for University of Texas at which he is a director:
http://www.utimco.org/scripts/internet/board_members.asp
He is saying that the gold-market is not backed by physical gold (only about 4% is backed by physical gold), all other gold-trading is just paper-gold (worth nothing).
In short order, tighter government controls will happen here. I can see this: All dealers {local coin shops & pawn shops too} will have to register with a new federal program. ALL SALES & PURCHASES REGARDLESS OF SIZE WILL BE REPORTED AND SALES TAXED AT, SAY, 20%. Records and receipts of all transactions will be sent to this new federal program. This will accomplish two things: 1. High transaction tax will discourage sales to the public, but not to the dealers. 2. The feds will now have a list of owners on record, so they will know where to go to seize it when the time comes. Bullion owners who bought their metals prior to the creation of this program are exempt from the tax of course, but are under the law, to register their holdings with the program. Any metal found in your possession without a program certificate will be considered contraband, and subject to confiscation and imprisonment.
Dump your PMs - bubble is over.