Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree

Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree

www.zerohedge.com...

"suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB."

From Wikileaks

3. CHINA'S GOLD RESERVES

"China increases its gold reserves in order to kill two birds with one stone"

"The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): "According to China's National Foreign Exchanges Administration China 's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.

I wonder if this has anything to do with Venezuela recalling all their gold home.?

But isn't the Gold price at record levels now?
It is traded in USA dollars?

reply to post by Dr Expired


It's at record levels now because of the foreign buying and because the US dollar is dying \
Have you looked at a currency chart for the US dollar over the last 10 years? It looks like a stock chart for a company that's about to go bankrupt
And no - it's not only priced in us dollars

The problem is the US has massive gold reserves still in the ground to fall back on.

This was tried before by the oil Arabs in the 1970s where the oil Arabs wanted gold for there oil instead of dollars.

This fall apart when the price of gold went from $800+ down to $200.

The people that got buggered that time were the oil Arabs and the consumers of oil that overpayed for gas at the time.

reply to post by Dr Expired


[atsimg]http://files.abovetopsecret.com/images/member/19acfb2579d2.png[/atsimg]

Originally posted by coldkidc
reply to post by Dr Expired

 

It's at record levels now because of the foreign buying and because the US dollar is dying \
Have you looked at a currency chart for the US dollar over the last 10 years? It looks like a stock chart for a company that's about to go bankrupt
And no - it's not only priced in us dollars

In other words, gold is not worth more, it;s just the US dollar is worth less?

reply to post by AMANNAMEDQUEST


That's part of it - that and more investment capital being poured into it - aka China and other central banks...and of course the hoards that follow the moves of the large institutions...

reply to post by AMANNAMEDQUEST


The Euro-zone debt problems have boosted gold as well...same problem - lack of trust in the existing fiat system.
China has other motivations - and has said as much previously - calling for the dollar to be removed as the world reserve currency.
Apparently they feel like strengthening gold and a weakening dollar will accelerate that transition...
And they're probably right...

Gold may pull back to lower levels one day but for now, unless something dramatically changes, the stage is set and I wouldn't bet against if for the next year or two...

Originally posted by ProfessorVeritas
I wonder if this has anything to do with Venezuela recalling all their gold home.?

Care to guess where Chavez might store his gold if he ever does get it?

Originally posted by ANNED
The problem is the US has massive gold reserves still in the ground to fall back on.

This was tried before by the oil Arabs in the 1970s where the oil Arabs wanted gold for there oil instead of dollars.

This fall apart when the price of gold went from $800+ down to $200.

The people that got buggered that time were the oil Arabs and the consumers of oil that overpayed for gas at the time.

Im not so sure about the gold the U.S. claims it has. No official has seen it for over 20 years and it has not been audited in nearly 30.

The U.S. wealth is actually more in oil that precious metals, we have one of the largest oil reserves in the world (per capita) Saudi Arabia and a few South American countries have the U.S. beat in oil.

reply to post by coldkidc


DOW v. Gold.

[atsimg]http://files.abovetopsecret.com/images/member/843d6e2eef70.gif[/atsimg]

I think we have winner!

To the OP good point but I don't like your source as we all know how accurate it is.
I do agree something .......is going on with gold at the moment and where it goes and why is another story.
If China really is buying huge amounts and if Fort Knox is empty as is the rumor then the fan is going to be brown for sure.
S&F
Regards, Iwinder

The next gold train will be leaving next week. Gold is scheduled for correction this Friday. Expect gold price to go down for buying opportunity.
China’s SGE to raise gold, silver margin requirements from Sep 9

GET PHYSICAL over this weekend before US Federal Budget (Sep 12 2011).