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The Hoarding Continues: China Has Imported More Gold In Six Months Than Portugal's Entire Gold Reserve

Tyler Durden's picture


While the highly "sophisticated" traders that make up the gold market continue to buy or sell the precious metal based on whether the Fed will or will not do the NEW QE tomorrow (or just because, like Bruno Iskil, they have a massive balance sheet, and can create margin position out of thin air with impunity), China continues to do one thing. Buy. Because while earlier today we were wondering (rhetorically, of course) what China is doing with all that excess trade surplus if it is not recycling it back into Treasurys, now we once again find out that instead of purchasing US paper, Beijing continues to buy non-US gold, in the form of 68 tons in imports from Hong Kong in the month of June. The year to date total (6 months)? 383 tons. In other words, in half a year China, whose official total tally is still a massively underrepresented 1054 tons, has imported more gold than the official gold reserves of Portugal, Venezuela, Saudi Arabia, the UK, and so on, and whose YTD imports alone make it the 14th largest holder of gold in the world. Realistically, by now China, which hasn't provided an honest gold reserve holdings update to the IMF in years, most certainly has more gold than the IMF, and its 2814 tons, itself. Of course, the moment the PBOC does announce its official updated gold stash, a gold price in the mid-$1000 range will be a long gone memory.

Here is the latest breakdown of gold reserves by Top 20 countries via the WGC:


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Wed, 08/15/2012 - 15:21 | 2707780 Tsunami Wave
Tsunami Wave's picture

Gold, Bitchez!! Have a nice day.

Wed, 08/15/2012 - 15:24 | 2707802 vast-dom
vast-dom's picture

and gold still under $2k/oz? manipulation of PMs.

Wed, 08/15/2012 - 15:29 | 2707821 Pladizow
Pladizow's picture

Why China is buying gold:

Wed, 08/15/2012 - 15:33 | 2707847 malikai
Wed, 08/15/2012 - 17:36 | 2708344 AldousHuxley
AldousHuxley's picture

this is like comparing an apple and an apple car.


portugal population 10M

China population 1,344M


China should be compare to entire EU. Just Beijing alone has twice more people than entire country of portugal.





Wed, 08/15/2012 - 18:06 | 2708452 gmrpeabody
gmrpeabody's picture

Does this mean ..., I'm not stupid for holding PMs...? No, wait... don't answer that.

Wed, 08/15/2012 - 18:39 | 2708531 Jay Gould Esq.
Jay Gould Esq.'s picture

The United States: "Officially" 8,133 tonnes...

When was the last time these "official" bullion holdings were audited, and the findings of said audit made a matter of public record ?

Wed, 08/15/2012 - 19:13 | 2708620 smlbizman
smlbizman's picture

i would question the u.s. and all others that the fed is holding for probably the top 5 just have a reciept...and the fed is probably using the ...dont ask dont tell policy, when countries inquire about their gold..

Wed, 08/15/2012 - 20:32 | 2708813 fourchan
fourchan's picture



all those we buy gold places are holes in america gold runs out to the rest of the world through.

Thu, 08/16/2012 - 03:02 | 2709429 ammo42
ammo42's picture

The United States: "Officially" 8,133 tonnes...

It's not difficult to declare such large reserves if you count tungsten.

Wed, 08/15/2012 - 18:43 | 2708538 nmewn
nmewn's picture

What does population have to do with China printing and exchanging that for gold?

Wed, 08/15/2012 - 21:30 | 2708942 dexter bland
dexter bland's picture

"However, our information collection from various trade sources indicated that these Hong Kong export numbers have been highly inflated by growing round tripping between mainland China and Hong Kong whereby local companies used gold to engage in currency and interest rate arbitrage transactions."


Wed, 08/15/2012 - 17:49 | 2708388 boogerbently
boogerbently's picture

What is the (percieved) advantage of govt's manipulating gold down, OTHER than the obvious, they can buy more?

There must be some technical, currency, inflationary reason.

Wed, 08/15/2012 - 18:25 | 2708472 Dr Benway
Dr Benway's picture

The gold price exposes the money printing and gold presents an investment alternative to ponzi assets, so they want to prevent gold rising. On a grander level gold represents a threat to the very core of a financial system built on air.

This is the theory in any case, YMMV.

Wed, 08/15/2012 - 18:56 | 2708581 Manthong
Manthong's picture

Gold is one of the determinants for interest rates.. an escalating price of gold puts pressure on interest instruments to pay more to compete. Central banks have to and will continue to force the price of gold low in order to keep interest rates low and government debt manageable..

until something beyond their control perturbs the equilibrium and everything changes.

Wed, 08/15/2012 - 20:34 | 2708819 fourchan
fourchan's picture

gold, enemy of the out of control state.

Thu, 08/16/2012 - 01:57 | 2709390 GAAP is crap
GAAP is crap's picture

I believe the oligarchs ruled well with a gold standard also.  I think causing the great depression 1 and bringing 'states' into 2 'world' wars qualifies as out of control.  Fiat does put a new spin on it.  The key word is control.  Gold can suck if they manage to control it...which they seem to do a good job of

When it serves their purposes, they'll monetize gold, confiscate it from citizens, and throw it in the 'basket' they keep mentioning...for the good of us all, of course. 


beware the monetization of gold trap.  let them keep the fiat while we transact with real assets they won't admit is money...


Wed, 08/15/2012 - 15:34 | 2707863 economics9698
economics9698's picture

I always thought it insanely stupid to be a mercantilist in the days of the fiat currencies.  I guess someone gave China the memo.

Wed, 08/15/2012 - 15:54 | 2707971 Midas
Midas's picture

Bullish for Tungsten!

Wed, 08/15/2012 - 15:59 | 2707998 Michael
Michael's picture

This is bullish for lead;

Social Security Administration To Purchase 174 Thousand Rounds Of Hollow Point Bullets

First it was the Department of Homeland Security, then it was the National Oceanic and Atmospheric Administration, and now the Social Security Administration is set to purchase 174,000 rounds of hollow point bullets that will be delivered to 41 locations across the country.

A solicitation posted by the SSA on the FedBizOpps website asks for contractors to supply 174,000 rounds of “.357 Sig 125 grain bonded jacketed hollow point pistol ammunition.”

Wed, 08/15/2012 - 16:09 | 2708040 lemonobrien
lemonobrien's picture

well, when peoples don't get their social security checks, theys bounds to go to washington; find the social security offices, and pay them a visit. personally; and if they can't give the peoples their money, they mights have to give them some ammo instead.

Wed, 08/15/2012 - 16:31 | 2708108 Divine Wind
Divine Wind's picture




Now dat wuz well said. You talks good.

Might you be interested in the job of President?

Wed, 08/15/2012 - 16:47 | 2708183 Michael
Michael's picture

DHS Classifies New Ammo Purchases Following Controversy

The Department of Homeland Security has redacted information relating to the quantity of bullets it is buying following a controversy concerning the agency’s purchase of over a billion rounds of ammo, which many fear is a sign the federal government is preparing for civil unrest in the United States.

Despite the fact that documents are only supposed to be redacted if authorized by Congress or for national security reasons, a solicitation posted on the FedBizOpps website yesterday concerning ammunition purchases made by the DHS on behalf of Immigration & Customs Enforcement (ICE) contains numerous blacked out sections.

The classified portions of the document include references to the amount of 223 62 and 223 64 grain ammunition being purchased.

The solicitation explains how the contract put out by the DHS to purchase the ammunition was not subject to “full and open competition,” a process justified by what the DHS claims was an “unusual and compelling urgency” to acquire the bullets, noting that there is a shortage of bullets which is threatening a situation which could cause “substantial safety issues for the government” should law enforcement officials not be adequately armed.

The Department of Homeland Security’s decision to black out sections of the document, including the number of bullets being purchased, is likely to be related to a massive controversy which has snowballed over the last few weeks pertaining to concerns as to why the federal agency has purchased well over a billion rounds of bullets over the last 6 months alone.

The DHS’ decision back in March to purchase of 450 million rounds of .40-caliber hollow point bullets that are designed to expand upon entry and cause maximum organ damage prompted questions as to why the federal agency required such powerful bullets and in such large quantities merely for training purposes.

This was followed up by a more recent order for a further 750 million rounds of assorted ammunition, including bullets that can penetrate walls.

Wed, 08/15/2012 - 17:04 | 2708239 Michael
Michael's picture

It'll be more likely those hollow point bullets will be used more on black people statistically speaking just as in New Orleans.

Having a black president next year will make it easier to use those bullets on blacks since no one will question Obama's use of those caps and their purchase by his administration.

I'm voting for Obama.

Wed, 08/15/2012 - 17:45 | 2708377 Paul Atreides
Paul Atreides's picture

Voting only gives the current system of electoral fraud and bankster puppet politicians your approval.

DON'T VOTE 2012!

Wed, 08/15/2012 - 17:51 | 2708393 boogerbently
boogerbently's picture

Write in Ron Paul, for prez (NOT because you love him, because you HATE the current 2 party scam).

Vote for the "party of your choice" non-incumbent.

Wed, 08/15/2012 - 20:42 | 2708835 CH1
CH1's picture

VOTING???  As in, for a politician?

How barbaric... how obsolete.... and what a massive waste of time.

Thu, 08/16/2012 - 11:19 | 2710621 Jack Napier
Jack Napier's picture

Ron Paul's entire family is in the masonic order even though he claims he himself is not, but the apple doesn't fall far from the tree. There are onliy 2 votes that matter, your wallet and your feet, but if you vote with your feet that's basically giving up. The only way to make a difference is to stack physical metal and to convince others to do the same.

Wed, 08/15/2012 - 17:52 | 2708396 Michael
Michael's picture

I voted yesterday in the Florida primary and helped defeat Paul Ryan's endorsement of Porter Goss by putting in Trey Radel instead.

Wed, 08/15/2012 - 19:18 | 2708640 divide_by_zero
divide_by_zero's picture

With all these amo purchase thru the executive branch I don't think your impeachment fallback plan will work with Obama. It's clear now he doesn't intend to leave office.

Wed, 08/15/2012 - 17:12 | 2708267 PiratePawpaw
PiratePawpaw's picture

Michael while this is indeed interesting, it is not suprising. This is why for over ten years my PM portfolio has included: Gold, Silver, Copper, Brass, and Lead. We need to be prepared for the same thing they are preparing for. Change. People resist it, and it will be unpleasant; but we will emerge from it much better off if we are prepared. Just holding the above-mentioned metals is not enough, we need to know how to and be prepared to use/exchange them all.

I dont depend on the govt for anything now. As the situation deteriorates, we can depend on them less. Be prepared to take care of yourself, for everything. If you cant personally provide it, learn to live without it.

Wed, 08/15/2012 - 17:02 | 2708240 Gavrikon
Gavrikon's picture


Wed, 08/15/2012 - 17:18 | 2708285 This just in
This just in's picture

Seriously.  We all sit around giggling, but why the hell ARE they buying all the ammo?  And HOLLOW POINT ROUNDS? 

Wed, 08/15/2012 - 18:24 | 2708495 DanDaley
DanDaley's picture

Because they want you DED...D-E-D, DED!

Wed, 08/15/2012 - 21:06 | 2708889 eaglefalcon
eaglefalcon's picture

Yup, that's what the executive branch of the government does the best: they execute

Thu, 08/16/2012 - 02:11 | 2709396 GAAP is crap
GAAP is crap's picture

Stalin lives?

Wed, 08/15/2012 - 15:32 | 2707842 DoChenRollingBearing
DoChenRollingBearing's picture

@ vast-dom

Yep.  Everyone should do what China is doing re gold.  BUY.

Article on the "rest of the metals" (iron, copper, titanium, aluminum, etc.) by Mickey Fulp, "The Mercenary Geologist":

Wed, 08/15/2012 - 15:46 | 2707932 SeverinSlade
SeverinSlade's picture

Let's see.  Equities have rallied a ton since the June lows and gold and silver have done...what?  Trade sideways?  The euro continues to implode, war is imminent with Iran/Syria, food inflation is rampant...and still, gold and silver do NOTHING?

Manipulation for 500 Bob!

Wed, 08/15/2012 - 16:09 | 2708039 Cognitive Dissonance
Cognitive Dissonance's picture

And the answer is.........Keep buying the freaking dip.

Wed, 08/15/2012 - 17:29 | 2708327 kill switch
kill switch's picture


Why are so many sovereigns hoarding this barbaric commodity, BEN?

Wed, 08/15/2012 - 19:25 | 2708656 Indrid Cold
Wed, 08/15/2012 - 16:13 | 2708052 El Oregonian
El Oregonian's picture

Hey! I'm not done stacking!!! It is way better for us in the long haul.

Keep your chin up Soldier!

Wed, 08/15/2012 - 16:56 | 2708213 NooooB
NooooB's picture

Are they buying it or digging it up in Africa? That would be an important distinction with relation to the effect on gold prices.

@ 15:40 it gets interesting...

Wed, 08/15/2012 - 19:02 | 2708596 Solon the Destroyer
Solon the Destroyer's picture

China is the largest gold miner nation in the world at about 30% more than the second place nation, South Africa.

The amount of their purchase so far this year equates to a little more than their entire annual production for the last year that I have accurate figures (2006).

Now they could certainly have ramped production in the intervening 6 years, but it is doubtful their production would have doubled.  So some of this gold had to have come from the "market".  That market could be direct-from-a-miner, yet it should still have rocked supply of physical to the general market, on the margin.  Have there been episodes of temporary backwardation this year?  I don't recall any.

Is it possible this delivery is the resolution of old mining book hedges in the futures market and that the buying came over a long period of time in the past?

Wed, 08/15/2012 - 16:56 | 2708214 NooooB
NooooB's picture

Are they buying it or digging it up in Africa? That would be an important distinction with relation to the effect on gold prices.

@ 15:40 it gets interesting...

Wed, 08/15/2012 - 19:05 | 2708605 donsluck
donsluck's picture

Actually, this news may be gold bearish, since if China slows their purchases, demand will drop.

Wed, 08/15/2012 - 20:32 | 2708811 long-shorty
long-shorty's picture

if China is buying all that gold and Paulsen owns 5% of the GLD, and the price is just sitting here, what would happen were they to stop buying?

this makes me a bit nervous about the price of gold in the short run.

Wed, 08/15/2012 - 15:32 | 2707841 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

sorry off topic Id thought I should throw this out there

"SS Admin getting quotes for large quantities of hollow-point rounds"

Wed, 08/15/2012 - 15:33 | 2707851 DoChenRollingBearing
DoChenRollingBearing's picture

YES, WHY is the Social Security Administration buying so much ammo?

Wed, 08/15/2012 - 15:35 | 2707866 knukles
knukles's picture

The death panels that the administration said did not exist.

(no sarc intended)

Wed, 08/15/2012 - 15:41 | 2707904 DoChenRollingBearing
DoChenRollingBearing's picture

LOL!  Booyah!

Wed, 08/15/2012 - 17:01 | 2708127's picture


The death panels that the administration said did not exist.

(no sarc intended)


Maybe that's not so wild. I don't recall all the details but Obamacare authorizes the creation of a security force under control of the president with officers approved by congress if they are in session. Perhaps instead of establishing a new and highly visible corp of troops the administration is implementing its plans by expanding the abilities of existing departments.

Wed, 08/15/2012 - 17:14 | 2708274 Zap Powerz
Zap Powerz's picture

I read somewhere, maybe it was here, that a .27 cent bullet is a pretty cost effective way at eliminating a 200,000 dollar unfunded liability.

Wed, 08/15/2012 - 17:47 | 2708384 GeezerGeek
GeezerGeek's picture

Pulling the plug on someeone is one thing. Pulling the trigger is quite another order of magnitude more direct.

Wed, 08/15/2012 - 18:27 | 2708501 DanDaley
DanDaley's picture

The one thing governments excell at is killing people.  

Wed, 08/15/2012 - 20:38 | 2708821 HardAssets
HardAssets's picture

"The one thing governments excell at is killing people."

Clarity of definitions -

'Government' is those individuals who are in positions to give orders, and those individuals who (unthinkingly or not) carry out such orders.

'Government', that is, these groups of individuals - live from their capacity to use force and the threat of force to get what they want from the rest of the populace.

Most of the populace, including those working in govt organizations are completely unaware of this reality.  Even your local school teacher lives from violence and the threat of violence. They get paid off of property taxes. If someone doesnt pay them, they will come take your property. If you resist - - ultimately they will kill you.

They use such extortion even if you don't want to send your kids to their public schools. And even if you don't have any kids at all.  

Its the same with all 'government'. The extortion/protection racket.

Wed, 08/15/2012 - 15:36 | 2707874 Ancona
Ancona's picture

Because if they kill all of the old people then Social Security becomes instantly solvent. Bullets are cheaper than paying benefits.

<sarc off>

Wed, 08/15/2012 - 15:46 | 2707933 DoChenRollingBearing
DoChenRollingBearing's picture

Sarc or not, it still makes NO SENSE to me why Social Security (SS?) and the National Weather Service (?) are buying all that ammo.  Maybe the Weather Service thinks they can kill hurricanes with it...

Wed, 08/15/2012 - 16:10 | 2708041 Pladizow
Pladizow's picture

"In earlier times it was easier to control a million people, then to physically kill a million people, today it is infinitely easier to kill a million people then to control a million people."  - Zbigniew Brzezinski  - Obama's top foreign policy advisor 11/17/08

Wed, 08/15/2012 - 16:24 | 2708091 El Oregonian
El Oregonian's picture

Boil him up and feed him to my hogs. Then he'll finally be put to good use.

Wed, 08/15/2012 - 18:15 | 2708475 gmrpeabody
gmrpeabody's picture

You'd give bad meat to your hogs...?

Wed, 08/15/2012 - 17:19 | 2708290 PiratePawpaw
PiratePawpaw's picture

Also consider this; supply and demand.

They are buying domestic suppliers. The more capacity they buy up, the less there is available for the rest of us. Less supply equals higher price. They cant enact gun control, so ammo control is the next best thing. I have always said that without ammo, a gun is just an expensive hammer. There have already been supply shortages domesticly. I bought ammo ten years ago for .08/rd. same ammo now is .40-1.00.

Wed, 08/15/2012 - 16:38 | 2708140's picture


"In earlier times it was easier to control a million people, then to physically kill a million people, today it is infinitely easier to kill a million people then to control a million people."  - Zbigniew Brzezinski  - Obama's top foreign policy advisor 11/17/08


That precludes the use of small caliber weapons. Zbig had something else in mind.

Wed, 08/15/2012 - 17:37 | 2708349 BlackSunshine
BlackSunshine's picture

His daughter does Morning Joe on MSNBC, she's kind of a b!tch.

Wed, 08/15/2012 - 17:00 | 2708232 I only kill chi...
I only kill chickens and wheat's picture

The NOAA ammo is supposedly for "The ammunition and 500 paper targets, according to the National Oceanic and Atmospheric Administration (NOAA), are intended for the Fisheries Office of Law Enforcement." From the WaTimes

Thu, 08/16/2012 - 02:17 | 2709401 GAAP is crap
GAAP is crap's picture
National Weather Service says ammo request was ‘clerical error’


yeah, totally reasonable that it is a clerical error.  like the 'my penis just fell into her' error.  bizarro world is here.

Wed, 08/15/2012 - 16:13 | 2708050 Cognitive Dissonance
Cognitive Dissonance's picture

They are simply straw agencies. I suspect whoever gets the "bids" will receive a change in shipping instructions.

"Dude, reroute to (fill in the name of your favorite fascist gvt goon force) stat."

Wed, 08/15/2012 - 16:30 | 2708109 ParkAveFlasher
ParkAveFlasher's picture

Thanks I tried to say this below but you did it in fewer and better words. 

Wed, 08/15/2012 - 16:22 | 2708083 NotApplicable
NotApplicable's picture

Looks to me like fedgov is trying to corner the market on JHP ammo in order to prevent others from getting any.

Wed, 08/15/2012 - 17:16 | 2708278 Zap Powerz
Zap Powerz's picture

oops.  Too late.

Wed, 08/15/2012 - 16:37 | 2708143 TheFuture_MrGittes
TheFuture_MrGittes's picture

The SSA has gone Ahab, lowering to hunt the Great White Land Whale; the Weather service are just along to help them 'strike the sun'.

Wed, 08/15/2012 - 20:59 | 2708868 dumpster
dumpster's picture

they are buying because they have a surplus budget amount .. .. the ammo will be used by the securty forces and the black hat helecopter gangs.

A wink and nod from the higher ups pushed the weather Service  to pony up or lose all funding next yeart

Wed, 08/15/2012 - 15:37 | 2707877 Raymond Reason
Raymond Reason's picture

And the National Weather Service, of all things.

Wed, 08/15/2012 - 15:39 | 2707894 ParkAveFlasher
ParkAveFlasher's picture

Civil War. 

...8/15/12 ParkAveFlasher ... Lunatic, Fringe Conspiracy Theorist, Non-Violent Augurer, self-proclaimed ZHer

Wed, 08/15/2012 - 15:44 | 2707913 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1  Me too!

Wed, 08/15/2012 - 16:23 | 2708088 ParkAveFlasher
ParkAveFlasher's picture

That said, and you gun nuts out there, God love your collective cold dead fingers, correct me if I'm wrong, but these are civilian calibers, pistol rounds, knock down power.  Purchased by more or less civilian (or any term that would imply "non-military") entites.  Pistol dum-dum means close range one-shot knockdown.  Indoor usage.  They are not for defense, because who would invade a SSA building, and why, to steal file cabinets?  Indoor usage.  Home invasions.  DHS ... Ok you can say it's for use on a plane, but really, how many rounds would get used while thwarting a hijacking?  the Weather Service ... no explanation there.  None. 

So I think this all an attempt to stock arms and munitions outside the purvey of the standing military by aggregating individual discretionary departmental budget allotments.  These depts are all of the Executive Branch, correct? 

I've had dreams of $5000/oz gold, and of vacating an impending police state.  Who else?

Wed, 08/15/2012 - 16:33 | 2708121 Tinky
Tinky's picture

whether $3k or higher, vacating should be a serious consideration for anyone who can consider doing so.

Wed, 08/15/2012 - 17:22 | 2708305 PiratePawpaw
PiratePawpaw's picture

.40 S&W is a popular caliber for civilian and govt use. It is also the standard sidearm for many govt agencies including the Texas DPS.

As far as power goes it is a hybrid, it combines the speed and range accuracy of a 9mm with the hitting power of a .45. And like anything that tries to be two things at once, it does neither well.

Wed, 08/15/2012 - 17:32 | 2708314 PiratePawpaw
PiratePawpaw's picture

On a related note...

Part of the stimulas money was used to provide local sherriffs dept and state Law Enforcement agencies with cheap assault weapons and tactical gear. I know of more than one agency personnaly that got refurbished mil surplus m-16's and body armor with it.

The govt is expecting us to become unhappy, and they know we are armed. They are preparing to "talk" us out of it.


Wed, 08/15/2012 - 17:54 | 2708403 Snake
Snake's picture



Wed, 08/15/2012 - 17:57 | 2708418 GeezerGeek
GeezerGeek's picture

So far only departments of the Executive branch are doing this. Think about the root word of Executive: execute.

When the legislative branches arm themselves and SCOTUS establishes its own SWAT teams then we'll know the end is near.

Meanwhile, our true defenders, the military grunts, are stuck overseas. I say we should demand the endless tours of international duty be ended. Bring the troops home.

Wed, 08/15/2012 - 19:50 | 2708729 Not Too Important
Not Too Important's picture

Exactly what the Romans did at the end of their Empire. They made it illegal for the Legions to come home to Rome.

The end is near. Very near.

Wed, 08/15/2012 - 15:48 | 2707946 Shameful
Shameful's picture

Brings new meaning to the term "Shoot the breeze"...

Wed, 08/15/2012 - 16:05 | 2708024 Mysteerious Roo...
Mysteerious Rooshian Vooman's picture



You don't git cho checks, bitchez!

Wed, 08/15/2012 - 16:19 | 2708074 El Oregonian
El Oregonian's picture

Probably the same reason the National Weather Service is also.

Wed, 08/15/2012 - 16:34 | 2708130 SwimmininNawlins
SwimmininNawlins's picture

Typical end of fiscal year surplus buys?>

Wed, 08/15/2012 - 16:33 | 2708122 Divine Wind
Divine Wind's picture


Anyone ever been in a Social Security office?

You would want to carry a firearm as well.

In their case, they employ security guards to keep order.


Wed, 08/15/2012 - 17:59 | 2708430 GeezerGeek
GeezerGeek's picture

Never know when one of us geezers is going to go postal and beat some bureaucrat with a walking cane. (Mine doubles as a light saber.)

Wed, 08/15/2012 - 17:24 | 2708311 Karl von Bahnhof
Karl von Bahnhof's picture

Seems to be more security than social in the future...

Wed, 08/15/2012 - 15:43 | 2707911 SeverinSlade
SeverinSlade's picture

My guess is China announces its OFFICIAL gold reserves shortly after QE3 or a flow based QE is announced by the Fed.

The primary reason why Bernanke has not formally announced QE3 is he knows A)It'll have little effect on the markets and B)Soon after the death spiral of the dollar will likely begin (as evidenced by China's incredible hunger for the barberous relic).

Wed, 08/15/2012 - 15:50 | 2707919 LoneStarHog
LoneStarHog's picture

China determined that a Chinese Global Reserve Currency would be stronger and better received backed by GOLD rather than shares in Facebook.

Wed, 08/15/2012 - 15:49 | 2707949 Newager23
Newager23's picture

The world economy has changed dramatically in the past decade and most people have not awoken to this fact. This change has many factors that all point to higher gold prices. I'll list ten of these factors:

1. US Government debt explosion.

2. Household debt hitting historical highs, reaching 100% of GDP.

3. Corporate debt hitting historical highs, reaching 100% of GDP.

4. Wealth generation becoming problematic in the US as manufacturing jobs are moved overseas.

5. Small business being more and more burdened with taxes and regulations.

6. Politics steadily becoming more devisive and less effective.

7. Wall Street corruption becoming more and more apparent.

8. Government manipulation of the economy making solutions more difficult to obtain.

9. Higher oil prices putting a stranglehold on economic growth.

10. Over 500 trillion in derivatives that are potential black swan waiting to happen.

That is just ten reasons and I could have easily listed twenty. The risk level to equities and bonds has risen dramatically in recent years. In fact, I would argue that equities (other than gold, silver, energy, and food) and bonds are highly risky investments. And that gold and silver are the true risk off trade. We will see more gold buying by governments and ultimately a run up in gold prices.

Now is a good time to invest in gold and silver mining stocks because they have been hammered of the past year. Opportunites are excellent in this sectore. Go to and check out some stocks.


Wed, 08/15/2012 - 17:00 | 2708229 HarryM
HarryM's picture

coins or bars?

Wed, 08/15/2012 - 18:07 | 2708454 midtowng
midtowng's picture

When does Taiwan, South Korea, and Saudi Arabia get into the act?

Wed, 08/15/2012 - 21:28 | 2708937 BigInJapan
BigInJapan's picture

There was some article here last year about South Korea buying in 20 or 30 tons.

Wed, 08/15/2012 - 21:13 | 2708901 Freewheelin Franklin
Freewheelin Franklin's picture

Gold, Bitchez!! Have a nice day.


Why is it that never gets old?

Wed, 08/15/2012 - 15:21 | 2707781 LawsofPhysics
LawsofPhysics's picture


Wed, 08/15/2012 - 15:34 | 2707856 knukles
knukles's picture

Everybody talks about auditing the Fed.... whioch as a matter of common sense should be done...
But on to bigger and better things...

Everybody also talks about auditing Ft. Knox, et al.
And seemingly intertwines that with the Fed.

America's gold is owned by the US Treasury.
Not the Fed.
But shows on the Feds.... Oh nevermind...
You get the picture.

So how's about first a simple fucking raising of the Hand.
Which of you assholes lays claim to the shit?
Who owns it?
OK, than it's your job to tell us what's there... and get audited by some non-governmental weasels.

Wed, 08/15/2012 - 15:38 | 2707889 Raymond Reason
Raymond Reason's picture

Hell, we're still trying to audit Romney's tax returns.  You ask too much.

Wed, 08/15/2012 - 15:21 | 2707784 Aziz
Aziz's picture

8133 tonnes of gold? Or tungsten?

Wed, 08/15/2012 - 15:25 | 2707813 Buckaroo Banzai
Buckaroo Banzai's picture

Or "deep storage" gold, i.e., stored in the ground inside rocks at 1gm/ton...

Wed, 08/15/2012 - 15:36 | 2707873 SilverTree
SilverTree's picture

8133 tonnes of you can't make us prove it!

Wed, 08/15/2012 - 15:41 | 2707906 Skateboarder
Skateboarder's picture

Schrodinger's Gold y'all.

Wed, 08/15/2012 - 15:37 | 2707879 strannick
strannick's picture

Yes and when they want to double their reserves they will lower the grade of that deep storage subterranean gold to .5 gm/ton. That way they wont have to upset the price, or shine any unwanted light into the holdings of GLD or COMEX registered holdings.

Wed, 08/15/2012 - 15:33 | 2707852 Chupacabra-322
Chupacabra-322's picture

@ Aziz,

Bricks of gold found gutted and filled with tungsten -

Roughly 15 years ago – during the Clinton Administration [think Robert Rubin, Sir Alan Greenspan and Lawrence Summers] – between 1.3 and 1.5 million 400 oz tungsten blanks were allegedly manufactured by a very high-end, sophisticated refiner in the USA [more than 16 Thousand metric tonnes]. Subsequently, 640,000 of these tungsten blanks received their gold plating and WERE shipped to Ft. Knox and remain there to this day. I know folks who have copies of the original shipping docs with dates and exact weights of “tungsten” bars shipped to Ft. Knox.
The balance of this 1.3 million – 1.5 million 400 oz tungsten cache was also plated and then allegedly “sold” into the international market.

Apparently, the global market is literally “stuffed full of 400 oz salted bars”.

“LONDON, April 14, 2004 (Reuters) - NM Rothschild & Sons Ltd., the London-based unit of investment bank Rothschild [ROT.UL], will withdraw from trading commodities, including gold, in London as it reviews its operations, it said on Wednesday.”

Interestingly, GATA’s Bill Murphy speculated about this back in 2004;

“Why is Rothschild leaving the gold business at this time my colleagues and I conjectured today? Just a guess on my part, but suspect:”


Coincidentally [or perhaps, not?], GLD Began Trading 11/12/2004

In light of what has occurred – regarding the Gold ETF, GLD – after reviewing their prospectus yet again, it becomes pretty clear that GLD was established to purposefully deflect investment dollars away from legitimate gold pursuits and to create a stealth, cesspool / catch-all, slush-fund and a likely destination for many of these “salted tungsten bars” where they would never see the light of day – hidden behind the following legalese “shield” from the law:

The Fed Has Already Been Caught Lying

Liberty Coin’s Patrick Heller recently wrote,

Earlier this year, the Gold Anti-Trust Action Committee (GATA), filed a second Freedom of Information Act (FOIA) request with the Federal Reserve System for documents from 1990 to date having to do with gold swaps, gold swapped, or proposed gold swaps.

On Aug. 5, The Federal Reserve responded to this FOIA request by adding two more documents to those disclosed to GATA in April 2008 from the earlier FOIA request. These documents totaled 173 pages, many parts of which were redacted (covered up to omit sections of text). The Fed's response also noted that there were 137 pages of documents not disclosed that were alleged to be exempt from disclosure.

GATA appealed this determination on Aug. 20. The appeal asked for more information to substantiate the legitimacy of the claimed exemptions from disclosure and an explanation on why some documents, such as one posted on the Federal Reserve Web site that discusses gold swaps, were not included in the Aug. 5 document release.

In a Sept. 17, 2009, letter on Federal Reserve System letterhead, Federal Reserve governor Kevin M. Warsh completely denied GATA's appeal. The entire text of this letter can be examined at

The first paragraph on the third page is the most revealing. Warsh wrote, "In connection with your appeal, I have confirmed that the information withheld under exemption 4 consists of confidential commercial or financial information relating to the operations of the Federal Reserve Banks that was obtained within the meaning of exemption 4. This includes information relating to swap arrangements with foreign banks on behalf of the Federal Reserve System and is not the type of information that is customarily disclosed to the public. This information was properly withheld from you."

This paragraph will likely be one of the most important news stories of the year.

Though not stated in plain English, this paragraph is an admission that the Fed has in the past and may now be engaged in trading gold swaps. Warsh's letter contradicts previous Fed statements to GATA denying that it ever engaged in gold swaps during the time period between Jan. 1, 1990 and the present.

[Perhaps most importantly], this was GATA's second FOIA request to the Federal Reserve on the issue of gold swaps. The 173 pages of documents received for the 2009 FOIA request all pre-dated the 2007 FOIA request, which means they should have been released in the response to the earlier FOIA request. This establishes a likelihood that the Federal Reserve has failed to adequately search or disclose relevant documents. Further, the Fed response admitted that it had copies of relevant records that originally appeared on the Treasury Department Web site, but failed to include them in its response.

Now that Federal Reserve governor Warsh has admitted that the Fed has lied in the past about the Fed’s involvement with gold. It should now be very clear to everyone why the Fed is lying and the true nature of what they are hiding / withholding.

Wed, 08/15/2012 - 15:39 | 2707895 MrBoompi
MrBoompi's picture

Lying is permissible when it protects the staus quo, er, I mean when it's a matter of national security....

Wed, 08/15/2012 - 15:39 | 2707897 DoChenRollingBearing
DoChenRollingBearing's picture

All we need to see is just ONE of these fake bars...  So where are they?

To mu knowledge, there have been only TWO cases of actual physical tungsten-salted gold bars foond in recent years, a 500 gram bar in Germany (there is a YouTube video) and a 1 kg bars found in the UK more recently.

Bron Suchecki of The Perth Mint believes there are very few fake gold bars in circulation, in that bars are melted down all the time (by jewelers, etc.), and so would be found.  

That does not mean that Central Bank or US national gold might not have fake bars, just sitting there...  FOFOA does NOT believe that our gold at Ft. Knox is tungsten.  And he follows gold VERY CLOSELY.

Wed, 08/15/2012 - 15:45 | 2707925 knukles
knukles's picture

Nope, not tungsten.
Just air.
Invisible gold.
Best kind.
Don't gotta polish it all the time.
Easy to store and transport.
Look, there goes another air bar of gold...

Wed, 08/15/2012 - 15:54 | 2707977 Shameful
Shameful's picture

Even if it is real, is it even there?  Or has it already been encumbered.  Think about it, assume FOFOA is right and there is a group of whales who know the 'real value' of gold.  Would these whales let that gold sit or would they move it into their own possession.  Even if not acting as a group Game Theory dictates each would try to maximize their hoard.  Hell it's in the $MFS (to use FOFOA's term) to keep teh ball in play as long as possible so they would be forced to tap the gold hoard to try and limit the whales from driving the price up to the real price.  To these whales it would be like offering to sell a dollar for a nickle, they would take as much of that action as they could get.

Now I doubt FOFOA's scenario, but in most scenarios it makes sense that the gold is already moved or has been spoken for.  It need not be fake, it simply needs a different listed owner.

Wed, 08/15/2012 - 17:14 | 2708273 I only kill chi...
I only kill chickens and wheat's picture

So why do Soros and Paulson buy GLD, maybe paulson, but I wouldn't think Sorass is that stupid.

But then again.

Wed, 08/15/2012 - 15:22 | 2707794 PatBateman
PatBateman's picture

Are they making those gold plated AK-47s for the wealthy's kids? I want one.

Wed, 08/15/2012 - 17:51 | 2708397 Zwelgje
Zwelgje's picture

This company can do it for you:

Wed, 08/15/2012 - 15:24 | 2707807 mrktwtch2
mrktwtch2's picture

well somebody has to buy at the top..kinda like real estate in late 06 and early

Wed, 08/15/2012 - 15:25 | 2707809 T-roll
T-roll's picture

If China is buying all this gold.  Who is selling?

Wed, 08/15/2012 - 15:28 | 2707826 Pladizow
Pladizow's picture

Global Mines?

Wed, 08/15/2012 - 15:38 | 2707875 Uber Vandal
Uber Vandal's picture

Been to a pawn shop, coin store, jewelry store, or "we buy gold" place lately?

I went to a local jewlery store to have an antique watch repaired, and was surprised to see a former co worker there trying to sell her jewlery and few coins she had.

I work at a pawn shop, and you simply can not imagine how desperate some people are getting.

Wed, 08/15/2012 - 15:49 | 2707950 buzzsaw99
buzzsaw99's picture

a local guy started a pawn shop here. was buying everybody's stuff. thirty guitars, several dozen sets of golf clubs, all kinds of shit. he was buying and buying and not selling anything. last week there was a fire, a big one. the customers aren't the only desperate people imo.

Wed, 08/15/2012 - 17:58 | 2708421 icanhasbailout
icanhasbailout's picture

I'm pretty sure that pawn shops are not producing the massive amount of net gold that China is buying - and China isn't buying loose jewelery. Where's the bulk bullion really coming from? Who are the major sellers?

Wed, 08/15/2012 - 19:32 | 2708686 dogbreath
dogbreath's picture

those "we Buy Gold" places are truly global.  India germany canada.   In germany it was " we buy dental gold".   That is really desparate to vacauum up the crumbs.  the old 12K little girl gold scrap.

Wed, 08/15/2012 - 19:54 | 2708735 KickIce
KickIce's picture

I can easily imagine a conversation going something like "you sell us gold and food or we dump every treasury..."

Wed, 08/15/2012 - 15:26 | 2707818 Dr. Engali
Dr. Engali's picture

Barbaric relic.

Wed, 08/15/2012 - 15:27 | 2707822 Cognitive Dissonance
Cognitive Dissonance's picture


I wonder what "they" know that we don't?

Wed, 08/15/2012 - 15:34 | 2707864 Raymond Reason
Raymond Reason's picture

I wonder if the Illuminati planned on this. 

Wed, 08/15/2012 - 15:37 | 2707884 knukles
knukles's picture

Great dim sum recipes

Wed, 08/15/2012 - 15:54 | 2707972 Cognitive Dissonance
Cognitive Dissonance's picture

I'll take one from column A and two from column B.

Can I charge that?

Wed, 08/15/2012 - 16:48 | 2708190 knukles
knukles's picture

We no takie fakie monnies... you gimme gold for dim sum.  Me no dim wit

Wed, 08/15/2012 - 17:35 | 2708340 kill switch
kill switch's picture
Italian border guards seize $134 billion in U.S. bonds at Swiss border Things that make you go HMMMM
Wed, 08/15/2012 - 15:27 | 2707824 Bastiat009
Bastiat009's picture

China buys gold from China (let's not forget the Handover in 1997), that may be why gold price has been down/flat for 12 months. 

Wed, 08/15/2012 - 20:49 | 2707978 eaglefalcon
eaglefalcon's picture

China buys gold from Hongkong, and since there's no gold mine in Hongkong, Hongkong has to buy gold from the rest of the world. The net result is that China buys gold from the rest of the world THROUGH Hongkong.

China also imports gold through hundreds of other ports like Shanghai and Guangzhou. However, unlike Hongkong, these ports don't release any data on gold import.

A more realistic estimate of total gold consumption in China for 2012:

1) Import through Hongkong 800 tons

2) import through other ports 800 tons (at least)

3) Domestic production 400 tons (378 tons for 2011)

4) Illegally smuggled into China 200 tons at least (government sells bullions with a 17% valued added tax, practically encouraging smuggling of gold into China

Total: 2,200 tons for 2012.

World production is 2,700 tons, not enough to satisfy the combination of China and India, that's why "we buy your gold" joints are springing up everywhere. A former Chinese central banker went on an interview on TV and said PBOC needs at least 10,000 tons to back up a gold standard

Wed, 08/15/2012 - 15:29 | 2707825 Dick Darlington
Dick Darlington's picture

Why are they buying the barbarous relic when there's great opportunities via ETF's or even better, nominal treasuries? Or VERY cheap equities! Ya know, equities are always and everywhere CHEAP! CHEAP, man! There's no "dividend shower" or any other form of cash flow in the relic! Oh dear, gotta stop, diaper went all wet again.

Wed, 08/15/2012 - 15:30 | 2707836 apberusdisvet
apberusdisvet's picture

And all this at a time of "peak" gold, with dramatically declining mining ore grades.  As to the  coming financial implosion,  do you really think that all countries won't nationalize gold mines within their borders?  Russia, China, and others already prohibit gold exports, or about 50% of total global production.  Connect the dots folks; $5000 is a no brainer.

Wed, 08/15/2012 - 15:31 | 2707837 gwar5
gwar5's picture

... China also mines 250 tons/yr and keeps it all, and they are having great success isolatig and marginalizing the USD as the worlds reserve currency. WASF - we are so fucked.

Wed, 08/15/2012 - 15:33 | 2707849 caimen garou
caimen garou's picture

US 8,133 tonnes of BS

Wed, 08/15/2012 - 15:54 | 2707973 Getting Old Sucks
Getting Old Sucks's picture

Yup, anyone seen it lately.  That is, anyone trust worthy?

Wed, 08/15/2012 - 15:33 | 2707853 CheapBastard
CheapBastard's picture

Soros can't compete with the Chinese although he doubled his gold holdings...although he probably admires their purchase.

Wed, 08/15/2012 - 15:55 | 2707982 ziggy59
ziggy59's picture

He doubled his GLD holdings..

Wed, 08/15/2012 - 16:48 | 2708188 Tuco Benedicto ...
Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Soros did not double his gold holdings.  He doubled his "paper" gold holdings.  Big difference!


Wed, 08/15/2012 - 15:34 | 2707854 SheepRevolution
SheepRevolution's picture

Wow, look at Switzerland! Over 1,000 tones and a population of 7,5 million people! Sure beats the crap out of the chinese..

Wed, 08/15/2012 - 16:01 | 2707988 Monedas
Monedas's picture

Thats roughly 3.5 trounces per Lederhoser ?

Wed, 08/15/2012 - 17:18 | 2708286 DrunkenPleb
DrunkenPleb's picture

...uuuuund isch verdüftet! Märci viel mal, nächste bitte!

Wed, 08/15/2012 - 15:34 | 2707861 fireangelmaverick
fireangelmaverick's picture

China..proud sponsor of the largest property bubble.....Source Zerohedge

......Proud sponsor of huge overcapacity in virtually every industry....Source Zerohedge

....worst/best? among manipulating statistics regarding its economy..Source Zerohedge

....Currency Manipulator.....Pegged currency...

Yet when this idiot of a nation buys Gold it is supposed to signfiy something good?

I am confused.

Wed, 08/15/2012 - 16:00 | 2708002 Bay of Pigs
Bay of Pigs's picture

Currency manipulator? Idiot nation? Would you rather they sell a trillion plus in US debt and crash the doelarr completely?

They are buying gold and other hard assets methodically to offset their exposure to devalued and depreciating USD's.


Wed, 08/15/2012 - 16:05 | 2708026 fireangelmaverick
fireangelmaverick's picture

I have no clue what they should sell or buy. I am simply asking as to why it is relevant what CHina does when economically every other action of theirs has been ridiculed by ZH.

Are they a centrally run economy doomed to crash or master tacticians buying the most undervalued asset?

Wed, 08/15/2012 - 16:13 | 2708051 Bay of Pigs
Bay of Pigs's picture

I agree you raise some relevant concerns/issues, but the evidence suggests they are buying. They are, without question, hoarding silver production. None for export.

Wed, 08/15/2012 - 16:29 | 2708107 BurningFuld
BurningFuld's picture

Let's put into perspective how much Gold is worth. The USA owes China a Trillion FRN's but will NOT part with 1 ounce of it's Gold stash to settle that debt. Just to give you all a little perspective on things.

Wed, 08/15/2012 - 17:35 | 2708339 Hohlick
Hohlick's picture

they have no need to sell US debt to kick some asses))) it is enough stop buying it ))

Wed, 08/15/2012 - 15:37 | 2707869 Never One Roach
Never One Roach's picture

Chinese are the #1 buyers of Perth Mint Gold I read somewhere...they now beat the EU and North America.  Looks like they must be getting tired of owning empty apartments as their housing bubble starts to correct.

Wed, 08/15/2012 - 15:39 | 2707893 knukles
knukles's picture

Fill every empty apartment with 440's.
Props up realestste prices.


Wed, 08/15/2012 - 15:39 | 2707892 q99x2
q99x2's picture

Wonder how much England will be able to buy in exchange for their fraud.

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