Thursday, February 13, 2014

China's Huge Gold Demand Opens The Gate For The Gold Bull

Based on analysis derived from physical gold delivery data on the Shanghai Gold Exchange - the world's biggest physical gold exchange - in January, a record amount of gold was imported and purchased/delivered in China last month:  Chinese Gold Demand At All-Time High

Because the Comex can't print up physical gold and deliver it the way it prints up Comex gold futures contracts, the Fed/bullion banks are having trouble right now containing the price of gold.  Rest assured, China will not buy Comex futures and wait for delivery OR leave its gold in U.S. vaults for safekeeping - just ask Germany how that has worked:  U.S. Defaults On German Gold Deliveries

I wrote an article reviewing the Chinese gold demand data and why it will override the blatant U.S. manipulation of the gold market and push gold significantly higher this year:  The Gold Bulls Are Starting To Run

When you factor in that the Indian Government may be forced politically to ease the gold import restrictions put in place last summer which severely limited the amount of gold India imported in the second half of the year, it makes my $2,000 price forecast for 2014 even more compelling.

The rest of the world outside of the zombified U.S. public is starting to understand the paper gold Ponzi scheme that the U.S. Fed/Govt has been operating for the better part of the last two decades in order to contain the price of gold,  to support the reserve currency status of the dollar and to prevent a higher price of gold from signalling to the market that U.S. monetary and fiscal policy has failed - badly.

11 comments:

  1. Something very special is happening in the EU. Looks like the confiscation is gearing up.

    http://www.zerohedge.com/news/2014-02-12/europe-considers-wholesale-savings-confiscation-enforced-redistribution

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  2. Could not help but notice both Barrick and Goldcorp wrote down resources significantly. Me thinks your call on the juniors skyrocketing is going to be bang on!
    Justin from Canada

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  3. China doesn't need to deal with COMEX/CRIMEX, China is cutting out the middle man by buying the mines outright. A ton of gold in the mine is worth ten in the crooked vault (or a hundred, or two hundred, or who knows how much is physically above ground.)

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    1. Some substantive arguments can be made that the Clinton administration enabled China to collateralize their US Treasury bond purchases using US natural resources. This helps to explain the relentless expansion of government land acquisitions for conversion to National Wildlife Refuges, Endangered Species Sanctuaries, State and National Parks and Forest Areas, National Scenic Areas etc. The Grand Canyon and California's Chocolate Mountains for instance, hold vast quantities of minerals and gold.
      Large areas of California that are off limits to mining, are known to contain vast rare earth minerals/elements deposits.
      We can't waste any of this wealth on the little people you know.

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  4. Jack Lew Has a Sit Down with Wall Street Banksters, Lawyers and Money Managers


    Treasury Secretary Jack Lew was in New York City yesterday and held meeting with mostly assorted Wall Street banksters, lawyers and money managers.

    http://www.economicpolicyjournal.com/2014/02/jack-lew-has-sit-down-with-wall-street.html#more

    remember paulson's last sit down?

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  5. Dave, you copied too much from Koos Jansen's website. You at least should have given him some credits...

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  6. Huh? You mean my Seeking Alpha article? That information is available is available on the SGE website. I am very meticulous about citing sources when I use information they have originated.

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    1. The links to his site on my blog are the same thing as citing a source.

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  7. I've read stories on China's imminent disclosure of their gold holdings. I've also read that the U.S. Vaults are empty? Is it possible China demanded gold from the U.S. Over the last 5 years or so to counter their large holdings of worthless treasuries?

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  8. Dave, I see gold is on the move today. Harvey Organ noted that GLD increased its gold holdings by over 7 tons, and he says the BOE was asked to provide it. How does he know this, or is it speculation?

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  9. Dave,

    Bought some more SRS this morning at 18.87. Keep accumulating when the price dips downwards.

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