Is China Ready to Buy Gold at Last?

[webmaster]

Subject:Is China Ready to Buy Gold at Last?
By: Jason Hommel, Silver Stock Report

Overview: There has been a recent flurry of news articles saying China may begin to diversify into Gold. But the articles conclude that China will move slowly, over years, so as to not disturb the markets. Funny. It's funny because it's like they don't know basic math. China wants 4000 tonnes of gold, to help "diversify" their $1.9 trillion in U.S. bonds. It's quite a joke. Please bear with me as I explain.

Link: http://news.silverseek.com/GoldIsMoney/1227122206.php

[7nomads]

Originally Posted by webmaster

Subject:Is China Ready to Buy Gold at Last?
By: Jason Hommel, Silver Stock Report

Overview: There has been a recent flurry of news articles saying China may begin to diversify into Gold. But the articles conclude that China will move slowly, over years, so as to not disturb the markets. Funny. It's funny because it's like they don't know basic math. China wants 4000 tonnes of gold, to help "diversify" their $1.9 trillion in U.S. bonds. It's quite a joke. Please bear with me as I explain.

Link: http://news.silverseek.com/GoldIsMoney/1227122206.php

The article doesn't say that the chinese will spend all 1.9 trillion on gold. Having known several top Chinese Statisiticans, they, and most other Asians could teach us Westerners something about math.

Real Capital, ie gold, is something most Economists laugh about, but it will return.

China will get their share if and when they want it.

Interesting note that they want half of what we own.

[geomets]

China was present at the recent G20 meeting in Washington...

China knows what is coming.

Their recent 'stimulus package' happens to be the exact amount that they currently own in US Treasuries. The exact amount. Coincidence? I doubt it. They are sending subtle signals (subtle to US, but screaming loud to those familiar with Chinese diplo-speak) that they will no longer purchase US T-bills. Instead, they will turn inward and fund domestic projects. They're going to invest in themselves... finally.

The movement into gold by several foreign central banks and SWFs is rational. Broadcasting it is not, however, a rational thing to do. The message is loud and clear. They have no faith in the US dollar. The stratospheric spike in the price of gold that is coming, can now be artfully 'blamed' on the Chinese... and Ben and Paul can continue to cry deflation! deflation! even as the truest indicator of inflation spirals into the $1,000s.

My guess is that the whole thing was coordinated last weekend at the summit (the gold purchase announcement). China will pick up as much cheap gold as they can, and probably have been having a field day buying up COMEX contracts during the recent paper manipulation downwards. But when the price explosion happens, the fed heads and CNBC dupes will simply blame China. And what does China care if we blame them for distorting the gold market... remember, gold is a barbarous relic that has no place in modern finance, etc etc.

I would never doubt the intelligence of our enemies/rivals... they may be far more cunning than we think.

[Chiswick40]

Originally Posted by geomets

China was present at the recent G20 meeting in Washington...

China knows what is coming.

Their recent 'stimulus package' happens to be the exact amount that they currently own in US Treasuries. The exact amount. Coincidence? I doubt it. They are sending subtle signals (subtle to US, but screaming loud to those familiar with Chinese diplo-speak) that they will no longer purchase US T-bills. Instead, they will turn inward and fund domestic projects. They're going to invest in themselves... finally.

The movement into gold by several foreign central banks and SWFs is rational. Broadcasting it is not, however, a rational thing to do. The message is loud and clear. They have no faith in the US dollar. The stratospheric spike in the price of gold that is coming, can now be artfully 'blamed' on the Chinese... and Ben and Paul can continue to cry deflation! deflation! even as the truest indicator of inflation spirals into the $1,000s.

My guess is that the whole thing was coordinated last weekend at the summit (the gold purchase announcement). China will pick up as much cheap gold as they can, and probably have been having a field day buying up COMEX contracts during the recent paper manipulation downwards. But when the price explosion happens, the fed heads and CNBC dupes will simply blame China. And what does China care if we blame them for distorting the gold market... remember, gold is a barbarous relic that has no place in modern finance, etc etc.

I would never doubt the intelligence of our enemies/rivals... they may be far more cunning than we think.

Hi Geomets what are your thoughts on silver following gold into outer orbit when the price of gold explodes?

[mick silver]

Everyone keeps talking when it going up , I just want to make it though next year when it get bad , I JUST DO NOT see silver and gold moving up fast and it may be years before we see the prices of 21 bucks again

[Ardent Listener]

From the article.........."China could even send agents to buy gold at any of the 4,000 or more coin shops in the U.S. The dollar could drop 50% or more overnight, and there's not a single thing the U.S. government, you or I could do about it."........

Rots of luck China, I don't see all that much physical gold at the coin shops now. Better try ebay instead.

[mick silver]

Breaking New , China Is Already Been Buying Gold

[geomets]

Hey Chiswick40...

I'm overweighted in silver right now, and a true believer of the silver story long-term. I think it is THE historical monetary metal, and I am very bullish.

That said, the Ag/Au ratio is way out of whack right now, and due for a correction. Add to that the impending Dubai Silver ETF... and the COMEX default that is increasingly likely, and I see the US commodities exchanges losing pricing power on the monetary metals.

Stay strong.

[Chiswick40]

Originally Posted by geomets

Hey Chiswick40...

I'm overweighted in silver right now, and a true believer of the silver story long-term. I think it is THE historical monetary metal, and I am very bullish.

That said, the Ag/Au ratio is way out of whack right now, and due for a correction. Add to that the impending Dubai Silver ETF... and the COMEX default that is increasingly likely, and I see the US commodities exchanges losing pricing power on the monetary metals.

Stay strong.

Have you seen Bob Chapman's the international forecaster latest article. The most bullish I have heard him on silver.

[averagejoe]

Geomets, You are 100% right about China they are not the backward 3rd world country that alot of Americans think they are. They are a very intelligent people and many of them are very well educated. I think they are about to give the world a business lessen we are not likely to forget for quite some time.