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The Chinese have taken another tremendous step to insert themselves into the gold market. What’s the end game to these maneuvers?

china_gold_vault

From L Todd Wood, for Birch Gold Group

China does nothing without a reason. Lately, that reason has a lot to do with gold and the gold market. This week, a bank in the communist “managed market” country seized further control over the precious metals market by buying one of the largest gold vaults in London.

This comes on the heels of the government announcing gold reserves a few months back that were much larger than the last official figures. In fact, Chinese gold stocks are most likely vastly under-reported. China has also launched a gold price index to insert itself more forcefully in the gold markets on a daily basis.

The secret vault in London, bought by the huge Chinese ICBC Standard Bank, reportedly can hold up to 2,000 metric tons of gold and other precious metals. It took over a year to build and is one of the largest gold vaults in Europe.

Adrian Ash told the BBC, “London is interesting as it doesn’t produce gold or refine it, nor is there much consumer interest. However, it is the center of the wholesale gold market. It’s the fourth-largest importer of gold and the second largest exporter. When you request a price of gold it is given as ‘Loco London’ – the price of gold delivery in London, which is the baseline… My understanding is that it’s being bought as a going concern, they haven’t just taken over an empty vault.”

Two things are obvious. First, China wants to own a lot of gold — as much as possible. And second, China wants to be an influential player in the worldwide gold market.

Standard Bank’s head of commodities, Mark Buncombe, said that buying the vault “enables us to better execute on our strategy to become one of the largest Chinese banks in the precious metals market.”

So why do you think China wants to be so heavily involved in precious metals, specifically gold, in such a myriad of ways? The answer most likely is very simple: China sees what is going on with global finance like everyone else.

They see the out of control spending and debt in Europe. They see one of the world’s reserve currencies in grave danger as the European Union threatens to tear itself apart for one reason or another.

China sees the out-of-control spending in the United States, the financial irresponsibility of both parties. They see governments failing in Latin America and oil impacting Russia in a very negative way. In short, China sees a world of financial and geopolitical instability.

It is very possible the world financial system that has been in place since the end of World War II could be coming apart at the seams. Currencies backed by the current financial regime could be have their value evaporated in a very short period of time.

What will be left standing if this happens? Yes, you guessed it, the precious metal that has been a human store of value for thousands of years, from the Romans to the Nazis. China is simply preparing to be the king of the hill when this transition happens from the financial world we know today.

The old maxim used to be, “Don’t fight the Fed.” In the future, when dealing in the gold market, we could apply a similar saying: “Don’t fight the Chinese.”

The Chinese find tremendous value in gold, as a means to protect their future. Isn’t time you did too?


This top investor could be right about gold. Read why here.

  • jon blackmann

    “GOLD GOLD GOLD,
    …what is really going on?”

    The
    Bank of Hawaii “loaded with gold” brouhaha has been raging for some years now as an unraveling
    “secret”
    only recently uncovered, and the reality could be that they hold only 170,000
    ounces and not 170,000 tonnes of gold, as had been quoted by several
    columnists.
    Nobody yet to date really knows for sure the real gold count there.
    Estimates of gold already mined and held today, range from 155,244 tonnes, to about 16 times that amount, 2.5 million tonnes.
    That
    current “official” estimate would fill three olympic size swimming
    pools or a 4 bedroom house with all the gold on the planet.
    The US Geological Survey estimates there are 52,000 tonnes of minable gold still in the ground and more is likely to be discovered.

    These
    figures are never on the mark because gold is and often remains some
    kind of secret possession. All the classified satellites in space
    science programs are highly dependent on gold for its technology. Gold
    is required in most of our favorite electronic toys now too, that hook
    us up to Big Bubba via social network e-devices.

    All
    my life the GOLD figures have never matched up well, decade after
    decade, but today one can find on Google the amounts of gold given for
    New York Federal Reserve [6700 tonnes, — but with the clarification it is not owned by them], Ft. Knox [which last time i read it was EMPTY, but online statistics today say 4,582 metric tons is harbored there], and Bank of London [5,134 tonnes],
    etc. Today if you are an individual and don’t hold the gold you bought in your
    hand or stash it where you can grab it easily later, you don’t really own it, if you bought it as a paper certificate.
    The certificates are not reliable. One will not be able to run and get
    their gold using their certificate during a crisis, it will not be given
    to them.

    The
    San Francisco Mint near the end of Market Street at the outer outer
    fringe of Haight Ashbury district [3 of the main witchcraft/occult shops
    of San Francisco are all near the Mint for some reason] is rumored to
    hold much gold, but
    trying to find out how many tons of bouillon and not just coins,
    using internet
    sources, is next to impossible. This should be public information in a
    true democracy. After all, it is “our” gold as taxpayers [of additional
    interest, the San Francisco Federal Reserve is the 2nd most powerful
    after New York’s, and not the Chicago Fed Reserve Bank, as one might
    suspect. Many of Obama’s and Michelle’s lifetime career rainmakers were
    with the Chicago Fed and their revolving door with Goldman Sachs].

    The
    important point here is that Bank of Hawaii may also be a major player on the
    gold world stage, and the rumors started flying due to this under-reported gold hording news.
    Why Hawaii? Punahou School [K-12] in Hawaii is famous for
    being the grade and high school for a vast majority of our generals in
    the Pentagon, going back over 100 years, and also Obama went there and
    many high directors of the CIA and other intel agencies, few of them
    residents of Hawaii. Is this
    mysterious fact connected somehow to the large and unaccountable gold
    holdings of the Bank of Hawaii, much like our
    military-academic-industrial-weapons dealers shadow state is
    unaccountable? Do volcanoes spew up more gold than we have imagined?
    Is the “protected bubble” bunker megalopolis for the western global
    elite in Hawaii, and not tunneled deep underground in Nevada or
    Colorado, according to the many urban legends?

    In 2013 the figure of 3500 tons of gold held
    by the Chinese was thrown into the cybercosmos, that figure has now gone rogue and nobody knows for
    sure how much the Chinese have today. Our own bankers had back then estimated 3500 tons but the Bank
    of China declared only 1,658 tons in 2015.
    It is even conceivable that America gave most of its gold to the
    Chinese when they wanted to cash in their Treasuries, after it dawned on
    the Chinese that real money would never be given back to them. Some
    experts
    speculate that the Chinese have rightly and not wrongly been just
    waiting for the best time to
    amputate the US dollar, without provoking a war or suffering some kind
    of
    parallel collapse themselves, because of all the instability that would
    lava down on the U.S., some of it might also trickle down to their
    mighty CHINA DRAGON empire too.

    http://www.usfunds.com/investor-library/frank-talk/top-10-countries-with-largest-gold-reserves/#.WJ6r__IeKM8

    U.S.
    has been the world’s largest debtor nation since 1985, yet we have
    greatly enlarged our military interests worldwide by ten-fold in those 3
    decades, and not attended to our own domestic defects and failings and
    national needs. http://www.nytimes.com/1985/09/17/business/us-turns-into-debtor-nation.html

    China
    may already have nearly bought as much gold as they feel they need to
    dump the dollar, which has been a worry of theirs for a long time, since
    they hold the life or death fate of the US dollar in their hands, and since the bonds
    they got in return for their mega-loans are most probably in reality worthless. The Chinese own a sizable majority of
    our US Treasuries, ever since we became the number one debtor nation,
    over 30 years ago and could not keep up all our wars and soldiering
    going on without the Chinese hard money and liquidity.

    Most
    of the U.S. ports were long ago sold to Dubai, despite the faux
    protestations of the Congress back then. It has been all covered up by
    other
    contractors’ names. The U.S. news stopped covering this treacherous
    sell-out after the very
    publicized Month of Congresspersons Who “doth protest too much”, when
    both sides of the aisle in Congress distanced themselves in kabuki like
    theater, from
    the bite-and-devour gobble it up deal. https://en.wikipedia.org/wiki/Dubai_Ports_World_controversy

    Lots of U.S. real estate was used as collateral to the Chinese to back up the swap of our Treasury bonds for their cash.

    This
    development is much more critical for the future of America than the alarm over
    one man Trump and his theatrical Tweets and 100 days of executive
    flourishings of his fancy pen, a man who will be no less of a puppet in
    the White House than all of them since after Carter, the last president to make any kind of little stand at all.

    It
    is starting to look like the elite who know most of these discussed secrets and
    many other undiscussed critical secrets and deceptions, they are a transnational global
    elite now and not bound by any national borders [the elite of US do not
    care if the US suffers more than some other region[s]/nations, not any longer, they could give a flying bat about us].
    This elite who use Goldman Sachs as their foot soldiers 1) had to make
    the US election appear as if it really was championing some kind of
    choice to the electorate; and 2) Trump was their choice from the start
    and he fits the bill for social engineering purposes for what has been
    scripted for the US people. It is a very ingenious strategy, the
    inevitable fall of the US nation from decades of runaway abuses and
    corruption and mismanagement and “strip and sell” mania from over 3
    decades, as China grew faster than the US did even during its Eisenhower
    Era. All of this cesspool of 25 to 30 years of deceit and lies and
    betrayals of trust regarding the American population, “covered up” in a sense, at the funeral, by the Orange Orangutan’s
    eccentricities and all the dirt of the .1% elite will be swept under his
    floppy toupee and nobody will be the wiser, just how we were all really screwed.

    Perhaps
    Trump has been signaling to us all this time with his orange face —
    and floppy brass colored toupee — that he knows the secrets of the missing GOLD — but his hairdressers
    can’t get the gold color right in his Viking like wig nor his orangutan orange face, or, that Trump
    wants to horde all the gold that could be used for his hair/facial enhancement, instead in
    his sons’ basement vaults.