Thank you Wiki-Leaks(!) US Gov confirms gold price manipulation

Extremely interesting story out of the US Embassy in China about the US government's desire to suppres gold price appreciation.

http://www.coinweek.com/bullion-rep...ed-u-s-government-suppression-of-gold-prices/


It's the kind of story bank runs are made of if anyone was paying attention. So far, no one besides us are paying attention.

 

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It only makes sense......If we are dependent on someone elses currency, well then, that just would'nt be the american way would it??

 

As I read the story, the info itself isn't out of the US embassy in China,only the memo concerning the info. Notice the preface into the quoted statement.

and of course the part

But no facts.

No matter what , it isn't confirming any action by the US or other entities, only what the U.S. embassy "thinks" the Chinese are doing and why. Another slant to push the "buy gold" agenda. Both may be true, but there is no confirming proof, and with the USD @78.15 currently, I think the Chinese have a very long way to go at replacing it with their currency. IMO.

 

I won't discount the issues with the way China runs its economy, it is afterall a centrally planned communist state. However what you just stated here is exactly how they operate. They take the long approach to getting something done as they are not on a 2 year national election cycle.

IMO, their entire rationale for reversing themselves and letting their citizens directly hold gold is nothing more than part of a long term plan to move more physical gold into that country. What better way than to encourage 1.25 billion plus people to assist with this. The chinese coin market (gold) in this country has practically disappeared as I've notice a huge buying of almost any chinese coin at pretty good premium by the dealers. I believe they are being sent back to china and sold at high profits.

 

But...

But...

 

I recently saw a video from one of Nigeria's leaders calling for the Renminbi to be the new medium of petro-exchange, as China was likened to the US economy after WWII. Bob Chapman estimates they need 3,000 - 5,000 more tons of gold before that could be possible. I still think it's more likely that IMF Special Drawing Rights will take over that role though, if anything.

It may be hard to believe that the gold price is being suppressed at today's record prices, but if we were ever to return to a gold standard with the previous ratio of dollars to gold the price would have to quadruple.

 

That would be assuming the same amount of dollars in circulation, and also making an assumption as to the linkage betweeen the two. Two very large assumptions.

I don't know the answer, just pointing out a very large jump that would have to be assumed in order for that to be apparent.

 

This is why I said under the previous ratio. I did not say that would have to be the case. Sure you could say we have 'X' amount of gold, and 'Y' amount of dollars, and link them up at the current price. It was merely an example supporting price suppression.

 

:hail:

 

I seem to recall reading that although Chinese citizens are permitted to BUY gold, they aren't permitted to take possession of it. In any event, a lot of the hype about what China may or may not be doing reminds me a lot of the hype about how Japan was going to take over the economic world in the 1980s.

Since bad information can be worse than ho information at all, I tend to ignore it in my own bullion and stock investing.

 

May they live in interesting times ahead.

Jim

 

Lol. That is the best dry humor quote I have heard in quite a while. I wonder how many get it?

Chris

 

I knew you would

 

Agree. The whole "China is the world" theme has already become so 2007. As in dated. If prices realized for Chinese numismatic material are any indication, they are as reckless with buying coins as they are with building pointless buildings no one will ever occupy. That's not the sort of thing the bodes well for economic dominance going forward, especially given the abysmal quality of most the goods they export.

 

This isn't true

 

Agree with this, wife is a citizen of PRC and I have been into "gold shops" on numerous occasions seeing people pick/buy/walk out the front door with they're purchase.

 

Yes indeed. It's an interesting dichotomy that in America consumer gold transactions consist of people selling their gold for some fiat money because of governmental policies have forced them into it. In China it's people buying gold with their fiat money because they don't trust that the government policies towards the economy.

It would not surprise me at all that if much of the junk gold being melted down in the USA is being sold on the streets of China.

 

....

Fatima:

​

This is true for the BOC's "gold saving accounts" that are touted in all of the Gold bullion's websites as being the huge boom to future Gold price increase due to China's "encouraging citizens to increase their gold assets", but the assets are in BOC and can't be removed by the client except in cash. ( see the 3rd dot). Another article indicates that the account is to be established by the "travel" permit so the bank knows who owns the account.

So would you trust any government ( especially a communist one who can nationalize your gold and refund you what ever cash their account settlement office deems "fair") to hold your gold


http://www.bochk.com/web/common/mul...nvestment&level_2=precious_metals&fldr_id=251


Jim

 

You posted a link to HongKong! In any case, a video is worth a million bank statements. This is from official state TV network.
[video=youtube;bYQNo_cbgyY]http://www.youtube.com/watch?v=bYQNo_cbgyY[/video]

And even more here from Sky News.
[video=youtube;aO7JaIl6nhI]https://www.youtube.com/watch?v=aO7JaIl6nhI[/video]

10,000 buyers/day in that gold market! Clearly these people are buying physical gold and walking away with it. Of course nothing on the American mainstream press about it. They still seek to convince Americans that it's a bad investment.

 

I have honestly been in Gold shops in Guangzhou and Shanghai where my mouth dropped open with the amount of gold on display and offered. Couple of times I thought I was in King Tut's tomb or something...my next thoughts were if this was in the U.S. there would be an infantry company guarding the store where as here there were 2-3 unarmed guards. Around spring festival the gold buying seemed to get at a frenzied pace as purchasing and taking home was a sign of prosperity for the coming new year.

Either that or it is all spray painted gold....I was to afraid to get near the stuff as a visitor from another country.