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The Hoarding Continues: China Purchases A Record 100 Tons Of Gold In April From Hong Kong
A month ago we were delighted to counterpoint Charlie Munger's prior remarks about the level of "civilization" of a given consumer based on their sentiment vis-a-vis gold, by demonstrating that Chinese purchases of gold from Hong Kong rose to a record. To wit: "Imports from Hong Kong were 135,529 kilograms (135.53 metric tons) between January and March, from 19,729 kilograms in the year-earlier period, according to data from the Census and Statistics Department of the Hong Kong government. Shipments in March rose 59 percent from February, yesterday's data showed." We have just gotten the April update, and, lo and behold, the country which is now the biggest buyer of gold, having surpassed India, just set a new record: "Gold imports by mainland China from Hong Kong climbed 65 percent to a record in April, advancing for a third straight month as investors sought a hedge against financial-market turmoil and an economic slowdown. Shipments totaled 103,644.5 kilograms (103.6 metric tons) in the month from 62,913 kilograms in March, according to export data from the Census and Statistics Department of the Hong Kong government today. In the first four months, imports were 239,174 kilograms from 27,114 kilograms a year earlier, according to Bloomberg calculations. China doesn’t publish such figures." In other words: in the first four months of 2012 Chinese purchases have increased by an unprecedented 782% over 2011.
And this is only from Hong Kong! Said otherwise: "Is the PBOC, which officially has just 1,054 tons of the yellow metal, quietly and relentlessly stockpiling gold?" Oh yes.
Expect a formal announcement from the Chinese central bank in the months ahead, indicating the country's gold hoard has increased by at least 100%. What happens then to the price of gold is rather self-explanatory.
More:
Increased imports by the second-largest consumer after India may help extend a rebound in the precious metal that’s been driven by speculation the U.S. Federal Reserve may add to stimulus this month to safeguard the recovery. Spot gold rallied 4.1 percent on June 1 after U.S. jobs data missed expectations.
China’s central bank may also be boosting holdings, according to Wang Xinyou, a senior analyst at Agricultural Bank of China Ltd.
“The fundamentals are intact for a bull market in gold,”
Liang Ruian, head of commodities at Pinpoint Investment Advisory Co. “With so much economic uncertainty out there, the money-printing practice won’t stop. Central-bank buying is another bullish factor that shouldn’t be discounted.”
Immediate-delivery gold, which traded at $1,617.80 an ounce at 8:50 p.m. in Beijing, is 3.6 percent higher this year as investors and central banks bought the metal as a store of value.
Holdings in the SPDR Gold Trust, the biggest bullion-backed exchange-traded fund, rose 1.5 percent in 2012, and central banks from Turkey to Kazakhstan added gold to their reserves.
And the kicker:
"We can’t rule out the possibility that the central bank is buying gold,” said Wang at Agricultural Bank of China, referring to the People’s Bank of China. The PBOC last made known its gold reserves more than two years ago, announcing that it held 33.89 million ounces, or 1,054 tons, as of June 30, 2009.
Rule out? You can bet on it. And when the press release is finally issued hold on to your gold hats folks...
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god im so cool
I want to know how the chinese can eat it but we cannot!
i just copy them... seems to work
few people know that all those american "we buy gold" places
smelt it down and ship it to the middle east and the orient.
americans are retards and i know because im one of them.
Me too.
A dangerous person is a person that knows just a little bit. As well, an equally, if not more, dangerous person is the person that has lived their whole life only knowing ONE way, therefore inconsiderate of the potential negative to that ONE way. Talk about being stuck in a rut. That is how to best explain Buffet and Munger. These two are complete fools, and will die fools watching their life-long hard work and fortunes evaporate, once this ponzi unwinds.
In addition, Charlie Munger is a prick.
Why would Hong Kong sell? Why would any body sell?
I hope the Chinese are better boat builders than francis_sawyer...
Courtesy of ZH:
Luxury Chinese Boat Launches, Sinks Immediately
http://www.zerohedge.com/news/luxury-chinese-boat-launches-sinks-immedia...
'in the first four months of 2012 Chinese purchases have increased by an unprecedented 782% over 2011.' - aha, that explains the plunging gold price...
How did I not see this one coming?
How much gold does Bernanke own personally? I'm sure he's been buying too.
Tanks, Ballistic missiles and all kinds of infantry can get from China to Hong Kong pretty quickly.
China already owns HK again.
PLA already domiciled on Pokfulam Road and in the old Gurkha barracks in the NT. Keep a very low profile.
Gold is a buy and a bargain until this ship of fools realize that they are the ballast. When they run to the other beam (the gold side) she will list to overbought and then right herself. G'luk.
HongKong is not selling the West is. HongKong is just the freight dock on the way to China Bank.
To give Munger some credit, they do eat dogs!
I believe your referring to Koreans. Dog isn't really a Chinese thing.
Sorry, bear penis!?!
To be fair, we have cheese with maggots... or frogs... can't decide what's more disgusting...
AKA as 'big power' soup.
Yes they eat dogs, paticularly the running ones. Street gaisi in Guangzhou have them skinned and prepped ready to fry. Outlawed in Hong Kong but you could still find a few 'secret' places around ten yrs ago. In the southwest they relish all sorts of wild things kept in cages outside the restaurants to pick and choose. In the far north they go for donkey dumplings. Northerners say southerners will eat anything including their mothers and fathers. Southerners don't like sheeple, the smell makes them swoon.
"
2/24/1999 – Ron Paul responding to Alan Greenspan
Dr. PAUL: Thank you, Mr. Chairman.
Mr. Greenspan, a lot of economists look to the price of gold as an indicator and as a monetary tool. It has been reported that you might even look at the price of gold on occasion.
Last summer on a couple of occasions here when you were talking before the committees on securities and on derivatives you mentioned something that was interesting. You said that central banks stand ready to sell gold in increasing quantities should the price rise, which I thought was rather interesting.
Then I followed up with a letter to you to ask you whether or not our central bank might not be involved in something like that, in the gold market. And you did answer me and stated that since the 1930's the Federal Reserve has had no authority to be involved with the gold markets."
Nothin to see here...
Great politician. He didn't answer the question. He just stated a fact of lawful constraint. Laws were meant to be broken, they say, and many have been. He didn't deny the practice. Have you broken any laws, Benjamin? Has the central bank been involved in any way in leasing or selling the nation's gold reserves, rehypothecating them, lending them, swapping them, guaranteeing them, pledging them or placing them at risk, directly or indirectly through subsidary banks or agents? Do we still have the reserves that you claim to hold, where are they held and why is it that a physical audit of the gold has not been carried out by an independent auditor in the last 50-60 years? Who has given you the authority to deny the people an audit of their gold? If you don't believe that the gold is money or an important asset in reserve, then why are you reluctant and obstructive in exposing the true nature of the reserves in gold? Why?
Answer the question; the question Jerk. http://www.youtube.com/watch?v=8j0eqZKTjpk
americans are retards and i know because im one of them.
Post of the month already and it's only the 4th?! Not bad!
I went into one of those We Buy places just out of curiosity last week - I ain't sellin' bitchez. I asked what their Buy price was for silver (they don't sell, of course). First, she quoted me the price in grams and for sterling. I asked about pure in troy ounces. She told me that she buys sterling at $10 and pure at $14. Second, this 22 year-old twat told me she has no idea how "the computer" arrives at the price. Then she had the nerve to get snippy at my incredulity. We are morons.
Just like the government doesn't want informed citizens, "We Buy" operations don't want informed customers.
been to one of those "cash for gold" places myself with a maple in hand. they offered 30% below spot price. when i asked them why, the lady working there said, "because we have to make profits, too." i thanked her and walked out with my maple, of course.
These cash4gold places, including jewelry stores which buy gold should all have signs out in front "Only imbeciles should enter here"
Exception-- New York City. Things are different there sheople.
Hilarious, if we all were only as enterprising as Cartman: http://www.southparkstudios.com/full-episodes/s16e02-cash-for-gold
I wonder. I live in a small rural town and there are two "We Buy Gold" shops. One has a person wearing a "We Buy Gold" sandwich board constantly on the main road. I have walked up, once or twice, to the locked door (a person inside can press a button to open it). So, you say the gold is going to China? Probably.
Okay, quick survey, is this just an interesting "time"and two years from now we will be worrying about other matters, or, is this a real problem that will change our lives?
?????
Huángj?n, m? qu?n
Be smart! Be diversified! Buy gold.
Central bankers are (typically) NOT stupid, and they are buying gold. Not silver, not platinum (although I own some of each). But most of my PMs are in gold!
Note that China will likely NEVER sell its gold. As the big buyers accumulate, they will probably not sell. If buyers want real physical Au and the big owners do not want to sell..., what happens?
$55,000
fofoa.blogspot.com
DCRB,
CBs can't buy silver without sending huge shockwaves in the minuscule silver market.
Yet, China, the world's third largest silver producer, went from exporting, to IMPORTING silver.
Silver will always have major moves compared to other PMs, and the upcoming price explotion will be the talk of the galaxy for aeons to come.
http://www.youtube.com/watch?v=RvV3nn_de2k
It's OK with me if silver goes up even more than gold. I have a decent amount of Ag too.
EDIT:
My Lexus won't get to 125... Nice link Ahmeexnal!
There are three things to keep in mind.
Firstly, the amount that China is spending on gold is a pittance given her FOREX reserves.
Secondly, China is stockpiling just about everything.
Thirdly, they are happy to keep receiving dollars for as long as they cn still convert them to something better.
Gold will probably not make it back into mainstream consciousness because people are either broke and cannot afford to buy or else are too stupid to see its true worth.
Firstly, yes, but its a start.
Secondly, yes.
Thirdly, yes and they should.
Mainstream will not factor nor matter because it wont be the indebted masses who will set the price once the CB announce they dont trust each other, the CB's will, there will only be casualties of humanity. (see history)
Average American makes 30k/yr. average savings rate is about 2%. That's about $50 a month. So they're gonna save fiat for 3 months or more, to buy one, 1/10 oz gold eagle? Nope. They COULD by 2 ASE's per month, but will they?
DCRB you know FOFOA has a spike price waaaaay above 55k in that scenario. It may take 10 years, but I can wait. I know how hard it is to make a dollah.
This is how China is quietly getting rid of its dollar reserves. Another nail in the dollar's reserve status casket.
Horry chit.
Made me Raugh
I'm surprised that they can see that gold is going to play a huge factor in determining currencies value in the future once fiat is dead, seeing as how you can blind them with dental floss.
http://m.youtube.com/#/watch?desktop_uri=%2Fwatch%3Fv%3D46WcFObgYhI&v=46...
China is lining up for a new world currancy backed buy gold. Guess who will have the strongest military by 2030?
Aliens.
I like your spelling of "buy".
The financial humor is strong with this one
Which is why we are building 7 billion dollar apiece stealth destroyers to be deployed, along with with 60% of our Naval fleet, to the Asian Pacific by 2020. The destroyers themselves are scheduled to be operable in 2014, which should leave plenty of wiggle room for starting a bunch of shit we can't finish in Asia. Again.
LMFAO! The Chinese will have to become considerably more transparent before they get any reserve currency. Guess who will be getting paid in gold for their soybeans by 2030? The Chinese need to be careful what they wish for. Fucking bring it!
GWB, is that you?
PMs are worth the most when a metallic substance treats you better than a fiat exchange. I wish it were different but this GlobeEx has been comatose for 48 months. Unplug the life support, already.
I rike yuah sens ob hyumah
Raff out roud.
Those barbarous chinese are making Ben rearry mad.
Last laugh will be on the chinese when they find out that their gold isn't backed by anything, whereas the dollar...
...is backed by god. ugh!
Well, actually Northrup Grumman, but you're pretty close.
Bubbas
What do those zany Chinese think this is, 1930s Vienna?
They must not have translated Jack Hough's timely article in the Wall Street Journal today.
http://finance.yahoo.com/news/much-gold-investors-zero-suffice-040100747...
Or else they've done enough hacking to know how many banking puppets the journal employs.
What's interesting in addition to this news is how much China has been ramping up internal gold production, about 15% a year for nearly a decade if my memory serves me correctly. If they're buying it externally too they must be accumulating some stash.
The really entertaining bit is how the Chinese have been able to get their hands on the barbarous relic at a discount thanks to the market suppression orchestrated by Benny and his friends in places like the Bank of England.
Sooner or later this hoarding is going to allow gold to break free from the paper manipulation.
Dr.
We i gave you a soap +1 , and i gave Blythe Masters, HSBC & Central planners +1,000,000 for keeping the barbarious relics affordable.
its like the sisqo song back in the days, "unleash the dragon" PBOC hoarding in secrecy
I cant take it anymore, Im getting an acme mortgage @ 3.8% for more. If I loose, I loose, Im used to it.
she had dumps like a truck truck truck
thighs like what what what
she had dumps like a truck truck truck
thighs like what what what
If you stack, then the paper manipulators work for you, not against you!
Would you care to elaboraate on this thesis?
By conjecture, with a derivatives bubble of 1 QUADRILLION, sucking up all available GDP on the planet, and the printing of fiat like a firehose trying to put it out, how can the metal overcome such a flood?
Its a balancing act, and these guys are historically failures at it. Not to mention its compeditive devaluation.
All the paper suppression in the world won't matter the first time somebody wants to take delivery and the golds not there.
This has already been happening. I'd say shit get more real when other commodities like food and fuel are not delivered. All economies are local and becoming more local by minute. China has a lot of locals to deal with.
Whoever is genuinely surprised by this should buy a kilo bar and smash themselves in the face with it cause they're teetering on stupid.
they won't
get my gold....
Mine either.
"Molon Labe."
Mine either.
"Boating Accident"
"in the first four months of 2012 Chinese purchases have increased by an unprecedented 782% over 2011."
!@#$!@#%!@#^%!@#$!@#$!@#^!#$^$%@#%^@#$!@#$!@^%!#$&$^*#@#!$!@#$!@#$
Shadow zombie markets wars soon
but the real yardstick is how much has daffy duck been hoarding
http://www.youtube.com/watch?v=-fU6VLVbA2A
Those stupid birds are always ahead of me...
Me too! Thought I'd give Daffy's routine a try though, but while rolling around and cavorting with my few coins, I lost one of them in my ass crack. Finally found it but it is no longer in uncirculated condition.
You didn't by chance find my cat?
If I had a trillion or two of soon to be worthless foreign reserves, I know how I would hedge it.
Hookers and blow?
Truly and honestly, we all wish we were living with Charlies problems.
In one of the latest Polls on what was the Best investment 28% of Americans said GOLD.
Wanna bet how many of that 28% owns any phyzzz?.
+ a big fat one
I have seen two numbers, percentages of Americans who own non-jewelry gold: 1% and 3%.
We ain't seen nothin' yet...
No wurry.
Dorrars reserves re-hypoed in London for Gold.
His name was Orville. He was retired, but always planted 20 acres of sweet potatoes. He drove all over the neighborhood in an ancient old truck giving tons of them away and wouldn't accept pay or barter. One day I finally asked him why he did that. He told me that during the Depression all his relatives moved out of the city and in with him, if it hadn't been for the potatoes they'd have starved to death. I then said, "But Orville, but that was over fifty years ago. Why do you still grow them?" He said "yes, I know that, but the thing is, I don't ever want to forget how to do it."
that was a great message.
So, I should click the "Buy" button on my favorite PM site?
Click it a few times.
And then maybe click it a few more times for good measure!
China's intentions and priorities have always been very clear. This is not unexpected. Should I be requiring gold in exchange for the next shipment of soybeans. I think so.
Right, Americans demanding physical gold in return for American exports... How's that going to work out for the dollar?
LMFAO! Will it matter when he dollar is fucking dead? How stupid are you? I'll take the gold or the new gold backed currency, either way. Careful what you wish for China.
More likely they need to gold to barter Iranian oil.
China will have a partial gold backed currency by 2014. Bank on it. Perhaps a two tiered currency, one for domestic and one for global trade.
Right, because the PBofC isn't printing-FAIL
Charlie Munger can suck a bag of dicks.
and a box of cocks
...and a bushel of balls
Brue horseshu ruv Ancot Streel.
do i hear the sounds of a bank holiday in the future?
imagine the panic that will ensue when citizens of various nations find out their central banks lost their gold by shipping it to London or NY vaults. Germans, Dutch and Swiss are already sounding the concern alarm.
Love the Alabama Leprechaun avatar, Darth!
Ouch, every ounce that China buys is one less backing the pyramid of GLD, et all in the US/London.
Imagine how much JPM would be sweating if they were also mopping up all available silver?
pods
Sounds like a lot of gold, but is only $4.4 billion worth. With $2 trillion in reserves that ain't jack crap for them.
This singular purchase combined with their own annual production represents about 20% of annual global gold production.........which is a lot of gold.
You are pricing it in ever depreciating fiat. Now, as a percentage of global supply...
Wow. If these production numbers ( http://www.gold.org/investment/why_how_and_where/why_invest/demand_and_supply/) are correct, that would mean China will buy almost half of global production on 2012!
Q the article on the HK exchange buying the LME..
http://blogs.wsj.com/deals/2012/05/16/hkex-may-win-lme-with-china-card/?...
http://www.reuters.com/article/2012/04/17/lme-yuan-idUSL3E8FH4R720120417
http://www.euromoneyfxnews.com/Article/3013602/UK-chancellor-says-London...
I wish Hop Sing was alive to see this.
You've come a long way baby..............
You are viejo to bring up Hop Sing. Made me laugh and wax nostalgic. Anybody miss Little Joe?
I wonder why the Chinese do what I do.
They wonder why you do what they do. Why isn't he bahaving like the herd?
They're in for a surprise. I hear the US is moving onto the tungsten standard on account of having so much stockpiled in Fort Knox.
(it took, I don't know, about 50 comments on this story before somebody mentioned TUNGSTEN?? We are slipping.)
Zhang Ziyi will be very pleased to hear it no doubt.
She rike gold!
What bothers me is, where is this gold coming from? Yes there is the newly mined supply but that does not seem sufficient to keep up with demand. Is it the West disgorging it's gold holdings? As the masses are already getting tapped out via Cash for Gold, that leaves only the major western CBs selling. If that is true, then might be dark days. After all the US seems be holding EU gold in custody, and it's entirely reasonable that the US is selling/leasing that gold into the market as well as the remaining gold hoard. We are all Gordon Brown now?
Did Chavez ever get his boatload of gold shipped to him?
chavez is rumored to be in the final days...Election in the fall
@ dark, Chavez did indeed get his gold back. Had a victory parade down there in Venzezuela.
@ Shameful, good seeing you around.
Let's put it this way. Several countries, including Germany, have requested repatriation of their gold held in the USA. I believe they are all still waiting. Maybe the Fed can't find it or maybe it vaporized? They don't exactly audit that stuff regularly....in fact hardly ever.
nice name, buddy. get an avatar
Your statement is interesting even when incomplete. The whole frigging point of President Nixon closing the "gold window" in August 1971 for us europeans was because France was stating it would be nice to have the real stuff instead of only promises to deliver it.
Repatriation? Fat hopes, as long as the US Dollar is the global reserve currency. Your currency, our problem.
----------------------
I think it's time for a nice Gold Bug rant. To Whom It May Concern:
1. keep stacking. every month a bit. you know, like saving. and stop trying to spin strange theories and conspiracies, you, generally speaking, suck in this endeavour.
2. currencies are huge beasts. even puny little runty Zimbabwe Dollar took ages to curl up and die.
3. The global reserve currency is in trouble since 1971. After the first crisis resolution 1980, europe supported the US trade balance for frigging twenty years. And now China has done it for ten years. Yes, the crisis never stopped and is now 45 years old. Think about it.
4. The typical fiat currency is a weapon (system) of war. I mean it literally, since you can spend now and pay later, something that gives you an incredible military edge. The EUR has specifically been designed with, among others, a scenario of a dying or dead USD in mind. Yes, it's even more expendable than the USD (notes are without any "cute" or "national pride" presidents and symbols) but the whole frigging purpose of it is not very-long term store of value. Just enough not to be burned and keep the frigging trade flows up.
5. The EUR is being expended to keep the price structure stable for trade, production and of course propping failing banks and sovereign debt. But europe has not a continent wide housing debt problem. In the long run, the failing banks will be just nationalized - there is little cultural bias against it, here. This means that the ECB and the prepared MegaFunds have much more leeway. The same is applying in Switzerland.
6. did I say keep stacking, slowly and relentlessly? ;-)
+ 1
Good Gold Bug Rant! Good advice too: keep buying slowly but surely. Maybe tomorrow for me!
1. Receive paycheck
2. Deposit paycheck
3. Withdraw some fiat
4. Stack some phyzz
5. Repeat
Don't make it a plan, make it a HABIT.
i assert that china is shorting gld and buying physical. there is no way an unmanipulated market would price gold this low given the obvious huge demand for it.
Well if JPM isn't going to cop to the practice why should China? The folks taking the trade know who's buying. Or at least the identities of the fronts.
Years ago, I knew mom and pop operations that would take their gleanings from CA holes in the ground to Chinatown in SF to unload. Traders there still knew what to look for and were always more than eager to make a deal. There's no way that stuff ever made it into an official report.
Are these the same folks "dumping treasuries just prior to their biggest rally since the 80's"? I thought you folks here coined the term "dumb money" vis a vis the Chinese Comminists.
I don't think China announcing increased reserves is in their interest...of buying more.
Gold buy Iran oil.Dump Dollar, hoard gold. Announce gold backed Yuan and buy oil from Russia, Brazil and Canada.
Collect from your debtors (hello, Ben) and demand land purchase.
GOLD GOLD GOLD Seriously though, why don't they just unpeg the yuan? Aren't they buying dollars hand over fist (and i guess treasuries?) to maintain the peg?
It's like they can't make up their minds or something
I disagree they've made up their minds that in the present they must play the global currency game until the future when gold will play a bigger role.
Well I guess the Chinese govt is omniscient then.
PS price controls are bad last time I checked
US Dollar Tipping Over
http://chasvoice.blogspot.com/2012/06/us-dollar-tipping-over.html
Krugman/idiot alert!
http://www.youtube.com/watch?v=_r-AKruzmkk&feature=player_embedded#!
Did someone say whoreding? Paging Mssrs. Munger and Buffet. Please take the call at the courtesy phone in the CNBS propaganda lobby.
Yes, they are buying, and at some point they will move to another gold backed currency and all other paper currencies will be toast.
China is leading the game and to understand their moves you have to read the GAME THEORY this is real and happening:
http://www.safehaven.com/article/15189/gold-and-the-central-banks-the-ga...
At some point suddenly if China claims they have not 1,000 tons but 20,000 tons..., what happens ?
That is years away. They are probably nearer to 2-3k tons. But they are raplidly closing in on the 8,000-10,000 tons the US and Europe both claim to own. Well before 20k they will hit 4k which is approx. half of the US and that will be a true milestone that nobody will be able to ignore.
That is years away. They are probably nearer to 2-3k tons. But they are raplidly closing in on the 8,000-10,000 tons the US and Europe both claim to own. Well before 20k they will hit 4k which is approx. half of the US and that will be a true milestone that nobody will be able to ignore
Indians have 18,000 tons, equal to ALL known soverign nations latest stats.
This is held by the people, and their banks hold several hundred tons, that we know of.
8,000-10,000 tons of tungsten you mean.
Let's see 100 * 29166.7 / 1,338,300,000 = 0.0022 troy ounces per PRC citizenism per month... ballin'
Probably should use just the number of Communist party members in the denominator.
100 * 29166.7 / 80,269,000 = 0.036 troy ounce per PRC Communist citizenism per month...
maybe the Mongilian hoards
were right....
How to get the Chinese to go along with your plans???
Offer them a leading role.
Temptation is it's most potent weapon.
Wanna change the world?
Gold backed currency ought to do the trick.
All in preparation for a BRIC bank and an associated, gold backed currency. Russia is hoarding as well as India, not sure on brazil and nothing needs to be said about South Africa. I expect this to be unleashed on the markets by the end of the summer, if you want to buy goods from the BRICS than you had better have some Gold so you can get their currency and complete the transaction. This will screw the dollar (and Euro) but good, they will in short order become as good as third world currencies...
You go China, Russia, Brazil, India and South Africa - I love the idea, its brilliant. This is a good thing, because at least then we'll have a solid currency we can depend on with minimal manipulation. Last I checked they can't print Gold, yet.
With so many nuclear-tipped missiles, I don't think the US just rolls over should your scenario comes to the forefront. There will be some excuse to unleash the Hounds of the Baskervilles or the dogs of war or the Kraken, whatever.
Well, Chinese citizens have kicked our assets before and I'm sure they'll be willing to do it again if we force them to...
There is no shortage of gold and there can never be a shortage of gold-
Only the price matters--all gold is for sale at the right price-provided the currency you exchange it in is worth something and if it isn't--it would mean gold isn't for sale at any price ie: Zimbabwe
Once upon a time China owned a lot of precious metal(esp silver),but
didn't have the army(navy) to back it up.They got beaten by the west
and were forced to accept drugs as money(opium wars)
China has learned and I think this time they will be much better
prepared,"history rymes but does not repeat itself".m2c