Tons of Gold In China – 1,800, 4,000 or 20,000 Tons?
Tons of Gold In China – 1,800, 4,000 or 20,000 Tons? by Rory – The Daily Coin
While, officially, China has cooled her heals in acquiring gold for the People’s Bank of China, make no mistake about it, China’s government is acquiring massive amounts of gold. Two other members of the SCO have stepped up their gold acquisitions to the tune of an 8 fold increase for Turkey and an 83% increase for Croatia. No small feat in this market.
In an article published by Global Times the headline reads – “Gold reserves to surpass 4,000 tons” but then immediately states China could have 20,000 tons of gold.
Although the People’s Bank of China (PBC), the country’s central bank, has not publicly disclosed plans to increase gold reserves since October 2016, some market analysts, based on calculations on domestic gold output and imports in recent years, estimated that the country’s above-ground gold reserves totaled 20,193 tons as of June, according to a report published by domestic industry website cnfol.com over the weekend. Source
That kind of changes things. The 20,193 tons of gold is in line with GoldMoney‘s, Head of Research, Alasdair Macleod’s, calculations. Mr. Macleod concluded, some five or more years ago, that China could have as much as 25,000 tons of gold using the same formula as noted above. From my perspective it is safe to say that China has a great deal more physical gold than the official PBoC gold listed for IMF reporting purposes.
We recently reported a reminder that China has an agreement with Russia to acquire upwards of 100 tons annually of Russian gold. Not one ounce of this gold has been “officially” reported. We feel confident the gold is moving between the two countries, otherwise, why would there have been an “official” announcement regarding the agreement detailing volumes of gold agreed upon?
This ties in perfectly with what is happening around Eastern Europe, specifically, Croatia and Turkey. Most all of the countries that are now members of one or more of the alliances, headed by Russia or China, like the SCO, EEU, BRICS, North/South Corridor or simply a member of the AIIB, are, seemingly, acquiring gold. These nations are preparing for the paradigm shift that is now in full swing. The only remaining question at this point is when the door will slam shut on the Federal Reserve Note’s “world reserve currency” status and the AIIB flexes it’s muscles and begins utilizing the CIPS system instead of the SWIFT system.
Croatia, as originally reported by The Daily Economist, has not just imported more gold, they increased their imports by 83% year over year.
The largest Croatian gold dealer, Auro Domus from Kastav, which gold about 50% of the market, sold investment gold and silver in the amount of 30.2 million kunas in the first half of this year, reports Jutarnji List on 2 August 2017.
The company points out that this is an increase of 83%, or nearly twice as much as in the same period last when the company generated income in the amount of 16.5 million kunas. This is proof that the demand for investment gold in Croatia continues to grow and that Croats are buying more than ever before. – Croatia News
Not only are Croatians stacking physical gold they are also stacking physical silver. It makes sense the Croats would decide to increase their acquisitions as the artificially low cost of precious metals makes it very inviting to anyone that is concerned about what is happening with the global economy. Anyone paying attention should be adding to their holdings at this time and Croatians are smart enough to take advantage of the situation.
If we look at what Turkey has done in June 2017 we see something that is nothing short of breathtaking. With an eight-fold increase in their imports of physical gold the Turks are most definitely preparing for a change. This begs the question, what do they know that we do not?
As ZeroHedge reported on the “panic-buying” of physical gold by the Turks
An eight-fold increase in gold imports to $2.8 billion from $354 million in the same month last year made the precious metal the second-most imported product and one of the main contributors to the trade gap.
June gold imports were also up by 216 percent year-on-year to $2.1 billion, according to final figures reported by Turkstat, the state statistics agency.
The question is – just like in India – how long before Erdogan ‘dictates’ an end to gold imports, imposes tariffs, or confiscates the precious metal?
It appears that gold is in fact part of the current global monetary system. We have suspected this for some time, but having confirmation is necessary to be able to speak from a point of knowledge instead of speculation.
It is no secret, as noted above, that China is acquiring massive amounts of physical gold. The purpose of these acquisitions has been a question, at least for me, for the past several years. I have long said they are not acquiring all this gold to make more coins or jewelry but now we have confirmation as reported by the Global Times of China
“Unlike credit currencies that are subjected to market uncertainty, gold is a relatively safe and independent vehicle to hedge against fluctuating exchange rates and at least maintain the asset’s current value,” Liu said.
If gold plays no role in the global monetary system, please explain the statement above made by Liu Xuezhi, a senior analyst at the Bank of Communications? Please keep in mind the state owns this bank, which means Mr. Liu is not allowed to say anything that is not approved by the state. This statement is nothing more than an echo of what Alan Greenspan said at a Council of Foreign Relations interview when Greenspan said:
“…intrinsic currencies like gold and silver are acceptable without a third party guarantee”
Gold serves a very important place in monetary reserves…
Why did Central Banks put money into an asset which has no rate of return, but cost of storage and insurance and everything else like that; why are they doing that? If you look at the data, with very few exceptions, all of the developed countries have gold reserves. Why?”
– Alan Greenspan, October 29, 2014
Global Times of China, later in the same article, paints a great picture of gold being part of the current global monetary system:
The US Federal Reserve is expected to raise its benchmark interest rate again in December, which may prompt the yuan to edge down, Liu said.
At this time, increasing gold reserves could also serve as a cushion, buffering the yuan’s downward pressure and stabilizing the yuan’s exchange rate, Liu noted.
Abundant gold reserves could also cement China’s position in the global financial market, as well as accelerate the yuan’s internationalization process in the long run, Zhou Yinghao, a senior analyst at the Beijing Gold Exchange Center, told the Global Times on Sunday.
If gold is not part of the current global monetary system then how could it have any effect on the yuan? If gold is something outside of the monetary system there would be zero effect on the yuan today, tomorrow or anytime in the future. There would be no effect and it certainly wouldn’t “serve as a cushion“, in essence, protecting the yuan from monetary madness generated by other currencies, namely the Federal Reserve Note.
All this gold flowing into these three countries is not to overlook what is happening in other areas of Eastern Europe, India and Asia. We know, from Dave Kranzler’s reports during our Shadow of Truth podcasts, that Vietnam has been acquiring massive amounts of gold. India, the second largest importer of gold on the planet and smaller countries llke Kazakstan have been acquiring gold in mass as well. All of these countries, as noted above, are part of a larger plan that will incorporate gold. The Belt and Road Initiative, by way of Kazakstan and the Shanghai Gold Exchange have already held at least one round of formal talks about gold being used as payment along this global network of economies. How should we respond to all this gold flowing into other countries, not just at the state level but the citizens acquiring hand over fist as well? I know how I’m going to respond – follow the leader. If one wishes to be wealthy, I have heard it said, do as the wealthy are doing. The middle class in America is all but gone and the new middle class is emerging in countries like China, India, Croatia and the like. It only makes, to me anyway, to do as the new middle class is doing – keep stacking physical!