Thursday, December 29, 2011

China and Japan Deliver A Huge Blow To the U.S. Dollar!!!

Tuesday, December 13, 2011

Wow! China’s imports of Gold Spike 4000% yoy

UK-based International Business Times reports China’s gold imports spiking 50 percent in October from September, and soaring 4,000 percent from October of a year ago, to an all-time single-month record high of 85.7 tons.  Sign-up for my 100% FREE Alerts
Though India’s anticipated record gold imports of a 1,000 tons this year could slow due to signs of slowing jewelry demand from a recent 20.3 percent crash in the rupee, since August, investors can no doubt count on China to, not only take over the gold market slack, but soon-to-dominate the New York-London gold cartel
As a reminder to evolving drama in the gold market, WikiLeaks exposed China’s plan to break from its sadistic recycling of trade surpluses into U.S. Treasuries, a shift in strategy by Beijing that’s prompted other Asian nations to follow suit.  See BER article, WikiLeaks Drops Bombshell on gold Market, GATA right again!
Source: U.S. embassy cable – 09BEIJING1134
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 United States 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 toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi.
And the promotion of the “internationalization” of the renminbi has noticeably accelerated this year.  On a year-over-year basis, the amount and rate of increase of gold purchases by the People’s Republic of China is no less impressive than the $3.2 trillion of foreign reserves slated to be deployed by Beijing.
IB Times quotes Credit Suisse analysts Thomas Kendall, who sees “Chinese imports of the yellow metal hitting 470-490 tonnes for the full year, up from last year’s 245 tonnes,” a near-double spike in volume anticipated at the close of 2011.
And it appears that the Chinese are patient when accumulating gold, outside of its steady purchases from its own China-based mining industry, buying on opportunistic dips created by periodic hedge funds selling.  In fact, the notorious sell offs in the gold market plays into the hands of the masters of Sun Tzu (1), as September’s swoon from one large hedge fund manager provided attractive prices for Beijing’s rapid gold accumulation program.
“Analysts said the [gold] buying, led by emerging market central banks intent on diversifying their growing foreign exchange reserves, helped explain gold’s rebound from a low of $1,534 a troy in September as large hedge funds such as Paulson & Co were forced to sell some gold to cover losses elsewhere,” stated the Financial Times of London on Nov. 17.
After dominating the world economy in production and exports of the past two decades, Beijing’s next Mao-like ‘Great Leap Forward’ enlists 100s of million of China’s middle class in a joint venture with its central bank to now wrest control of the gold market away from New York and London.
As the world witnessed the powerful rise of China, post Tiananmen Square, the power of 1.3 billion Chinese, encouraged and mobilized by a centrally-commanded political structure to achieve an objective vital to its national security can produce awesome results.  As the WikiLeaks cable exposes, today, Beijing is out to break the gold cartel with its awesome population might.
Since 2002, after lifting the 53-year ban on gold ownership under Mao Zedong, the Chinese have eagerly scooped up gold coins and jewelry at rapid rates, to numbers which now rival India’s colossal demand for the yellow metal.
Forbes Magazine reported in March, “Believe it or not Ripley! The People’s Bank of China (PBOC) recommended yesterday that 1 billion Chinese consider buying gold as a hedge against inflation and to preserve values in a world where currencies can fall. . . . Wow! Be like the Fed telling you to buy oil stocks or crude oil futures due to expectation higher gasoline prices this summer.”
According to the World Gold Council, total gold demand in the PRoC will reach 750 tons in 2011.  In the third quarter, consumer demand for the precious metal continued to soar, led by a 24 percent increase in demand of 60.2 tons of gold bars and coins, from last year’s third quarter total of 48.5 tons, while demand for jewelry rose 13 percent.
Front-running China’s demand
Frank Holmes, contributing editor for Forbes Magazine penned an article, today, titled, Central Bank Appetite And The Monetary Case For $10,000 Gold.  Holmes sees what the Chinese see: a tsunami of money creation coming out of the U.S. and the ECB, whose combined currencies comprise approximately 88 percent of all central bank reserves.
In the Forbes article, he quotes long-time friend and founder of Goldcorp’s Silver Wheaton, Frank Giustra:
The bottom line is that the money needed to bail out Europe and to fund America’s spiraling debt and future unfunded obligations is in the tens of trillions. IT DOES NOT EXIST.
It has to be created by printing money in massive quantities, and despite all the rhetoric you will hear against such policies, in the end it’s the path of least resistance. Printing money is an invisible tax on savings, much easier to initiate, than, say, raising taxes or cutting back on services and entitlements.
Under the Holmes scenario, which, incidentally, has become an ever-increasingly common conclusion, drawn by many well-respected analysts, the gold price could move as high as $10,000 per ounce in coming years.  That means: the dollar and euro are expected to erode significantly in purchasing power during that time period.
As far as the question: when is a good time to buy gold?  Stephen Leeb, author of Red Alert: How China’s Growing Prosperity Threatens the American Way of Life, has researched China and its strategic initiatives for the coming 20 years.  According to him, just jump in and wait, because a few hundred dollars here, or there, won’t amount to much in the long run.
“So how low gold will go here is literally meaningless,” Leeb told King World News on Monday.  “My advice to investors is don’t try to catch a bottom and be a hero.  It could happen any time.  It could be happening as we speak, it could be happening today.  But it’s really irrelevant.  Let’s say gold is at $3000, $4,000 or $5,000 in three or four years, which I think is very, very likely–are you really even going to remember that it went to $1,650 or $1,550?  No.”
(1) From Wiki: The book was first translated into the French language in 1772 by French Jesuit Jean Joseph Marie Amiot, and into English by British officer Everard Ferguson Calthrop in 1905. Leaders as diverse as Mao Zedong, General Vo Nguyen Giap, Baron Antoine-Henri Jomini, GeneralDouglas MacArthur, Napoleon, and leaders of Imperial Japan have drawn inspiration from the work. The Art of War has also been applied to business and managerial strategies.

Read more:

Sunday, November 20, 2011

morganI spoke today with “The Silver Guru” himself, David Morgan, publisher of The Morgan Report. David moved subscribers into silver over ten years ago.
In today’s interview, David shares his thoughts on the MF Global collapse and why it’s explosively bullish for gold and silver physical bullion. Additionally, David feels gold may break $1900 in the first quarter of 2012. On mining shares, David feel’s they’re oversold, and offer a unique value at these levels.
To listen to the interview, right click the following link and/or save to to your desktop:gold grenade
To learn more about The Morgan Report and follow David’s work, visit:

World Silver Investment Has Increased 1,150% In The Past 4 Years According To Silver Institute!

Sunday, November 6, 2011

Silver Manipulation And CFTC's evasion after 3 years investigating silver is answer enough

By: Chris Powell, Secretary/Treasurer, GATA

-- Posted 5 November, 2011 | Share this article | 

Dear Friend of GATA and Gold (and Silver):
Under renewed pressure by Commissioner Bart Chilton to account for itself, the U.S. Commodity Futures Trading Commission today issued a statement about its 3-year-old investigation of manipulation of the silver market, asserting only that the investigation continues.
Those who have been taking the CFTC investigation seriously may wax indignant over the delay in resolution. But the delay speaks for itself, and eloquently: Thanks to the complaint about market rigging by London silver trader Andrew Maguire and GATA's publicizing it at the CFTC's March 25, 2010, hearing and agitating about it afterward, the CFTC has probably realized that the rigging of the silver market is, like the rigging of the gold market, a U.S. Government operation conducted through intermediaries, primary dealers in U.S. Government securities, and thus can't be examined in public without crashing the operation and impugning the whole government of which the CFTC is a part.
The CFTC well may expect that the silver business can be resolved by a confidential settlement of the class-action lawsuit brought against the main silver market manipulator, JPMorganChase, in U.S. District Court for the Southern District of New York. (See the lawsuit's consolidated complaint here:

If the lawsuit survives a summary judgment dismissal motion by JPMorganChase, which seems likely, insofar as such a motion must presume that everything alleged in the complaint is true, the lawsuit may be worth a few hundred million dollars to the investment bank just to prevent any hostile law firms from inspecting its books and interrogating its traders and managers in court-ordered discovery and deposition. Such a settlement will make the plaintiffs' lawyers very rich and let the CFTC off the hook even as it leaves the public with no formal finding of what actually happened.
Will it end the manipulation of the silver market, or will that manipulation be ended by whatever futures market position limits the CFTC eventually decides to enforce? Maybe -- or maybe JPMorganChase will find intermediaries through which it can continue to enter the market in disproportionate size and thus continue to control it.
In any case silver investors probably should be thankful enough that the CFTC held that hearing a year ago in March and thankful particularly to Commissioner Chilton for insuring that GATA Chairman Bill Murphy and GATA Board of Directors member Adrian Douglas were allowed to speak and introduce Maguire's complaint in detail. On the day of the hearing silver was hovering around $15 per ounce and had been going nowhere in particular. By the end of the year it had doubled and this week it closed above $34, and there are many signs of its physical shortage as the paper hangers of the fractional-reserve precious metal banking system thrash around desperately to regain control of the market.
Anything beyond this would require one agency of the U.S. Government to execute other agencies of the government, agencies much bigger and more sinister. Most likely the CFTC would be executed first. Indeed, GATA often worries for Chilton's safety and is sometimes surprised that he hasn't already been found in circumstances making it appear that he had been struck by lightning, a meteorite, or a freight train.
So thanks, CFTC, but we don't need your silver investigation anymore. You've already told us all we need to know.
The CFTC's statement is appended.
Additional comments made by Chilton today to King World News, regarding the collapse of the trading firm MF Global, can be found here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

* * *
CFTC Statement Regarding Enforcement Investigation of the Silver Markets
Press Release
U.S. Commodity Futures Trading Commission
Friday, November 4, 2011
WASHINGTON -- The Commodity Futures Trading Commission today issued the following statement:
In September 2008 the commission announced the existence of an enforcement investigation into the possibility of unlawful acts in silver markets. Since that time, the staff has analyzed over 100,000 documents and interviewed dozens of witnesses and obtained expert advice. It has been a long, detailed, and thorough investigation, and it continues in an appropriate and considered manner."

Wednesday, November 2, 2011

Chinese Silver Investment Going Parabolic

When 1.3 Billion people start investing in something…you might want to pay attention.
Chinese investment in silver has exploded since last year, with the trading volume going exponential. The China Daily reported today that the trading volume of silver forwards on the Shanghai Gold Exchange (SGE), China's only exchange for the precious metal, surged 751 percent year-on-year in 2010. Meanwhile, the volume in September of this year was more than six times that of the same period in 2010.
Chinese commercial banks are now selling silver to investors in the hundreds of tons. One example is the Industrial and Commercial Bank of China Ltd (ICBC), China's biggest lender which launched paper silver trading for individual investors in August of last year. The other large Chinese Banks have also introduced silver trading. The trading volume of ICBC's paper silver products alone reached 300 tons in the first half of 2011, almost four times the figure for the whole of 2010. That's right, one Chinese bank alone sold 300 tons or over 10.5 million ounces of silver in only 6 months. In only their first year of trading, ICBC bank alone will sell over 20 million ounces of silver which alone would represent over 2% of the total amount of silver mined on earth for the entire year.
The key factor to pay attention to is that most of these silver purchases are forward contracts and not the actual physical silver. What happens when Chinese investors demand physical silver instead of paper silver?
Modern day commodity markets are characterized by a continuing divergence between the “paper” and the real “physical” markets. The Chinese silver market is no different.
Most commodities trading takes place between parties than have no physical supply of the materials. In the Silver market, the distortion between the physical and paper markets is extreme. Every day in the global markets, $50 Billion dollars of silver can be sold daily by parties that actually own no silver. The global silver market will trade 1 billion ounces daily in global markets which is more than the entire amount of silver mined each year, which is close to 900 million ounces.
Demand for precious metals in China is skyrocketing. High inflation and a lack of investment options are the main culprits. With new housing regulations bringing housing investment to a standstill, investors are looking for new ways to invest cash. The housing market looks to go down and the stock market is widely viewed as corrupt and risky. Gold and silver are becoming increasingly popular.
China’s net imports of silver hit a record high in 2010 with the volume quadrupling to a total import amount of 3,500 tons. This is a major shift as China was previously a net exporter.
In China, silver has served historically as the main medium of exchange in China. It was an official currency in China as far back as the Han Dynasty (206BC-220AD). Silver Ingots were used to horde wealth and Silver Taels were produced by the government to function as currency or to back a paper currency. The Chinese word for “Bank” is literally translated as “Silver House”.
Chinese silver trading is largely a paper market today. Chinese Banks are selling paper silver in massive amounts which will no doubt continue to double or triple year after year. These paper silver contracts are redeemable in silver bars at the banks yet the banks do not have the silver. Chinese investors are often fickle and enjoy hard assets. What kind of short squeeze will develop when Chinese banks are forced to go onto the open market and buy physical silver to support Chinese investors when they switch from paper silver to physical silver?
What is the Mandarin term for “The mother of all short squeezes”?

Saturday, April 16, 2011

You Will Keep Hearing "Silver And Gold Hit A New All-Time High Price" Thanks To Dollar Collapse

Gold hits new all time price and Silver hits a new 31 year high price. The steady collapse of the U.S. dollar will continue to make silver and gold rise as it will take more paper money to buy them.

Thursday, April 14, 2011

I Bet The Collapse Of The Dollar Is As Foreign As Bretton Woods II To Most Americans!!

Bretton Woods II took place on April 8th -11th and most Americans had no clue. George Soros put together a meeting of the minds to work on a new world reserve currency while most Americans were talking about American Idol.

Tuesday, March 22, 2011

Why Silver And Not Gold? Why Listen To Jim Rogers And Eric Sprott / Economic Collapse Update

In a recent interview with The Gold Report Eric Sprott gives an excellent reason why silver has more upside than gold on a percentage basis. Billionaire investors are telling us how to prepare and the bond market is headed off a cliff as well as much more.

Sunday, March 6, 2011

Silver And Gold Are Hitting New Highs While Most Americans Are Being Led Into CDs By Bankers!!!

Gold and silver are running up as more and more people become aware of what is happening and most people are still moving into traditional investments, getting eaten alive by inflation.

Monday, January 10, 2011

Mike Maloney Talking About His Coining Of The Phrase "Greatest Wealth Transfer In The History Of Mankind"

The monetary system that is made up of all fiat currencies is showing bigger and bigger cracks. For the fist time in History there is nowhere to run. All currencies are just paper with numbers and when the system resets like it always does every 40 to 50 years or so, wealth will be transfered into real money with intrinsic value.

Robert Kiyosaki Is Predicting A $6,000/oz. Silver Price In The Next Couple Years

Over the past few years silver has been shaping up to have the potential to be the best investment of a generation. For the first time in history, there is more gold than silver available for investment. Silver is used in so many different industrial applications with solar energy being among the top fastest growing sectors. It is estimated that in 3-5 years solar energy demand will reach 100 million ounces per year.