China has imported through Hong Kong over 2,200 tons of gold over the last 2 years. This amount is roughly half of the entire worlds’ production (excluding Russian and Chinese production which does not get exported) going into just one country alone. This does not take into account demand from India or the rest of Asia. It does not take into account European, North American, South American, African nor Australian demand. Just one country on one continent has spoken for 1 of every 2 ounces mined over the last 2 years. These 2,200 tons does not even take into account gold that the Shanghai exchange has delivered which is another 1,750 tons which accounts for nearly the rest of ALL mined gold over the last 2 years.
So where is all of this gold coming from? We know that COMEX and GLD have bled out 700 tons or so over the last year and we “don’t know” what happened to 1,300 tons that the Bank of England no longer shows as in its possession. As a side note, how is it that all of this gold (weight) can get shipped all over the world but a measly 300 tons that Germany wants back is “just too heavy” and will take 7 years for the NY Fed to deliver? In any case, massive amounts of gold have been bought AND delivered over the last few years…while the price has gone “down.”
I think that the best way to put this in perspective for you would be to simply call it a “going out of business sale!” Think about it for a moment, whenever you see a company go out of business…what do they do? They SELL …and they sell at a discount to boot! Isn’t this exactly what we are doing now? We are selling gold (and silver) at or below the cost of production. I don’t know this for a fact but I would personally bet that some sort of deal was made 2, 3, or 4 years back where the Chinese told us that we either sell “x” amount of gold to them at then or lower prices or they would blow up the game. Laugh or call me a nut case, the Chinese have known full well that we are (and were) mathematically bankrupt, as long as they could still “spend” their dollars on “stuff” (including gold) then why wouldn’t they string it along as long as they could? I have said and will continue to say that when the very first ounce of gold that China orders and tries to pay for but does not get delivered will be the very last day that “normal” continues.
The above has spoken to what “has” already happened. The question now is how much longer can it continue to happen? Where will the gold come from to deliver? The Chinese show zero signs of slowing their purchases, the Indians are now paying over a 10% premium to smuggle gold into their country and the rest of the global demand shows no signs of slowing. This is a mathematical conundrum with only one answer…the price MUST rise to ration demand, preserve supply and actually “clear” the market. Something has to give. Demand cannot exceed supply forever because supply will vanish. The ONLY thing available in Mother Nature’s arsenal to balance out true supply with actual demand is “price.”
“Price” as you know has been a funny duck over the last couple of years and has been perverted. The dollar price of gold has gone down as demand rose. This is impossibility except for one thing, as I mentioned above, if a deal was struck to “buy time” and prolong the game. It is THE only thing that I can think of. You can tell me that it’s impossible, unthinkable or inconceivable but please consider the motives for both sides. We want the game to continue and China wants as much gold as they can get their hands on without upsetting the markets.
Speaking of “upsetting the markets,” China seems to have ALL of the cards in that department. They can destroy the Treasury market at will. They can destroy the dollar and its use and utility at will. They can obviously blow the metals markets to shreds easier than either the dollar or Treasury market. They have over $3 trillion of Treasuries and dollar reserves, a mere 1% of this figure amounts to $30 billion. (While we push $85 billion more per month into the system via QE which is roughly enough to buy every single ounce of gold that is mined in the world in one year). $30 billion could buy up nearly 40% of annual production. It could nearly clean out ALL of GLD and COMEX dealer inventories…and this is JUST ONE PERCENT of what China is sitting on. CHINA ALONE and no one else!
Do you see? Do you see just how carefully balanced this game is now? Do you see how close to going nuclear this situation is? This is not about gold going to $1,500 or $1,900 or $5,000 or any other number. This is for ALL the marbles. You will either have it or you won’t. “Price” will not ever again be “decided” in the paper markets of N.Y. or London. China will spring up a gold backed or a ratio currency and TELLS the world just how many dollars are required to purchase and have one ounce of gold delivered. While we are completing our “going out of business sale,” China is filling their coffers. They (along with Russia, Germany and others) will impose a “reset” on the U.S. where we have no seat at the table and no say so in what is decided. Why? Because “he who has the gold always has and always will make the rules.” They clearly have it and we will clearly not after our “sale.”
Bill,
Fantastic article! I’m sure you’ll get some hate mail from people who will once again label you a conspiracy nut. They will miss the underlying message that it really doesn’t matter who is doing what and why in the physical markets, all that matters is that soon all the marbles will be gone and then the game will be called.
At that time you better have some marbles….
Thanks Al. Yes, the hate mail comes from time to time and yes, exactly, it matters not why or who is draining the metal. It only matters that it is all going away.
Ouch. That hurts. Thanks for the insight. I guess that means the American public will one day realize there’s nothing in Fort Knox.
It’s always hard for me to understand why we’re on such a kamikaze mission. If TPTB are so brilliant, like the common perception in the alternative media, don’t they have some master scheme to retain control of the world? Or is this devolving into an “every man for himself scenario” even at the highest levels?
maybe and maybe.
Nope. China and Russia are clearly involved in the NWO scheme. The banksters have merely decided they no longer have any use for the U.S., so they’re destroying the dollar and destroying the economy, and will rob the citizens of their money (via bail-ins) before turning their focus and money on China. Some of the scum bag Bush family members have already moved there.
That’s why the COMEX and GLD are allowing the gold to go from West to East. It’s all part of the transition plan of the NWO scumbags.
Why else would the banksters be willing to let China have all of that gold? It’s because the elite have chosen China as their NWO child, with the knowing and willing participation of the Chinese elite and political class of course, while they’re purposely letting the U.S. go to second or third world status. And the stupid American sheeple and bribed politicians will simply stand idle and watch it happen.
Disgusting, sad and unbelievable.
Do you ever worry that the Chinese might not play to their own interests? I mean look at the U.S. policy…it has been co-opted.
China prepares to liberalise finance as hedge funds and estate agents salivate Beijing is making prepartions to let its money off the leash, and the repercussions will be felt everywhere
In the light of what is going to be discussed later this week, such fears look overblown. That’s not just because such a move would be a pyrrhic victory for China, since it would destroy the value of its assets. It’s also because bit by bit, China’s economy – if not its political structure – is being reshaped along the lines sought by Wall Street and by American-owned transnational corporations.
http://www.theguardian.com/business/economics-blog/2013/nov/03/china-liberalise-finance-hedge-funds-estate-agents
destroy the value of their assets? What do you think they’ve been doing for 5 years now? Every deal structured was with payment of Dollars…which means they may have already contracted to spend what they have …AND mark up the Gold they’ve acquired.
Mr. Holter,
That was a really good article. I agree with your observations. I would like to get your opinion of the assertions made by Karen Hudeswho was Senior Legal Counsel for the World Bank, and Neil Keenan in the following links:
Examine agreements between the Fed and BIS when it was formed in 1930, specifically including the exact quantity of gold in all of the Global Collateral Accounts (GCA). Also, please examine the allegations in the Keenan Complaint (the Fed is a defendant) in which said gold was misappropriated and used to further enrich a few individuals belonging to the global “super-entity” (described below) rather than be used to reduce the poverty of billions globally, which was the stated purpose of the account.
For more information on these issues, please examine the following:
http://www.scribd.com/doc/93058461/LAWSUIT-Complaint-SDNY-11-23-2011-Neil-Keenan
http://www.scribd.com/doc/93549901/LIEN-Affidavit-Against-Federal-Reserve-The-Fed
Look into why U.S. President John F. Kennedy signed the Green Hilton Agreement to withdraw thousands of tons of gold from the Global Collateral Accounts. Some think Kennedy was shot because he signed Executive Order 11110 which created debt free interest free United States Dollars backed by Treasury held silver. Instead he may have been shot for what he was going to do next. For what other reason would Kennedy withdraw thousands of tons of gold from the Global Collateral Accounts, except to issue interest free debt free United States Dollars backed by gold. Someone did not want him to do this. Who earns interest on the dollars we use? Please find a copy of the documents Kennedy signed included as an attachment to the UBS BIS Cease and Desist Order at this link:
http://www.scribd.com/doc/93652234/Cease-Desist-Order-to-UBS-BIS-Evidence
For more information you may want to contact Karen Hudes who was Senior Legal Counsel for the World Bank at http://www.kahudes.net. She can help with identifying 360 accounts in 172 banks in 49 countries including 175,000 metric tons of gold on record in the Bank of Hawaii. Isn’t this relevant to your business?
You can learn more about this and the Fed’s relationship to the events of 911 at these links here:
http://www.writingroom.com/viewwriting/Dakota1955/Gold-Warriors—The-Vulcans—Murdering-Liberty-and-Killing-Hope-on-911
http://www.deepblacklies.co.uk/secret_gold_treaty.htm
For a general overview of global “super-entity” study the following:
http://www.divinecosmos.com/start-here/davids-blog/1023-financial-tyranny
Thank you for your attention.
All of what you write and Ms. Hudes says is quite plausible EXCEPT 175,000 tons held in one bank as that amount would just about include every single ounce of Gold ever mined on the planet throughout all of history.
Bill
I read your articles everyday, but have a question to ask. Who has the most to gain by the gold price going south? According to me the Chinese, because they bought 2200 t over the last 2 years and are said to be in the market for 5000t more. Lets say they bought 1000 t paper gold through proxies and strategicaly dumped it on the market. This would decrease the gold price and they buy real gold at this lower price. They know westerners buy gold to speculate and as soon as their paper gold sales takes effect they know the weak hands will sell. Could this not explain massive paper sales on the thinnest time of the market.
this could be correct to some extent.