The Golden Truth: China's Huge Gold Demand Opens The Gate For The Gold Bull

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:

AnonymousThursday, 13 February, 2014
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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AnonymousThursday, 13 February, 2014
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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JMR777Thursday, 13 February, 2014
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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AnonymousThursday, 13 February, 2014
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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AnonymousThursday, 13 February, 2014
Dave, you copied too much from Koos Jansen's website. You at least should have given him some credits...
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Dave in DenverThursday, 13 February, 2014
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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AnonymousFriday, 14 February, 2014
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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AnonymousFriday, 14 February, 2014
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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AnonymousFriday, 14 February, 2014
Dave,

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

Why Gold?

Gold is the world's oldest currency. You exchange your fiat currency (dollars, euros, yen, yuan) into gold as an insurance policy against catastrophic Central Bank and Government policies which serve to destroy the value of fiat currencies and destroy democracy.

Gold can ONLY be considered an investment to the extent that it remains significantly and historically undervalued in relation to the fiat currencies against which its value is measured. Otherwise it remains the world's oldest currency and is completely free from the counterparty risk associated with currency by Government fiat (i.e. fiat currencies rely on a Government's "full faith and credit.")

Quote Of The Month Courtesy of "Jesse"

Unfortunately for Larry Summers, Ben Bernanke, and their friends at the BIS, they have not yet figured out how to print physical gold, silver, and other essential commodities, and the world is reaching the point where it might simply start ignoring the New York based markets with respect to essential commodities such as basic materials, oil, foodstuffs, and the like, as they become increasingly irrelevant, fraudulent, and Orwellian. And then where will the financial engineers be, except with no more excuses and no place to hide?

Here is the link to his entire commentary, well worth a read:

http://jessescrossroadscafe.blogspot.com/2010/07/gold-daily-chart-shock-and-awe-for.html

Great Quote From Jim Rogers On Govt CPI Reporting

JR: I mean, we have inflation now. If you go to the shop, whether it’s groceries, or education or insurance or health care, prices are going up for everything. The government lies about it in the US. Some countries lie, many countries don’t: Australia, China, India and Norway. Many countries don’t lie about it and acknowledge that we have inflation. Others lie about it, the UK and the US, but if you go shopping you know prices are up.

Q: Are you saying that the American Consumer Price Index (CPI) published by the US Bureau of Labor Statistics is a lie?

JR: In my opinion, yes, of course it is. Have you looked at it? They’ve changed their accounting several times in the past few decades. When housing was 20% to 25% of the CPI and housing was going up, they didn’t count it, saying rents weren’t going up, and then when home prices started going down, they counted it. It’s the same with many things. It’s staggering some of the tortuous reasoning that the BLS has used over the past 25 or 30 years. When the price of gasoline goes up, they say it’s not really going up because it’s better gasoline, better quality, therefore you’re getting more for your money. I mean, it’s endless, the stuff that they say and for some reason people sit there, although more and more people are catching on, and accept what the government says.

source: www.clusterstock.com

Quote of the Week

"The primary function of a Central Bank is to engage in the massive transfer of wealth from the middle class to the wealthy elite. The Federal Reserve was set up to do this with the blessing and support of Congress." - Dave in Denver

If you refuse to believe the above, please read "The Creature From Jekyll Island: A Second Look at the Federal Reserve" by G. Edward Griffin and then explain to me why the Senate voted down the Vitter Amendment and Congress refuses to pass a law requiring a full audit of the Fed, even though the Fed is using taxpayer-backed money to bailout Wall Street and Europe.