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Malevolent

China Is About to Shock the World

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http://www.valuewalk.com/2015/05/china-gold-rmb/

China Is About to Shock the World

Posted By: The Sovereign InvestorPosted date: May 10, 2015 08:40:41 AMIn: Politics78 Comments



We are on the verge of a golden shock.


I wrote recently about plans by the International Monetary Fund (IMF) to include the Chinese currency as one of the reserve currencies that back the IMF’s so-called Special Drawing Rights.


Well, there’s another facet to that story that you need to know … and it echoes the warnings I first began voicing in early 2014.


As part of the IMF’s plan to bring the yuan into the basket of reserve currencies, IMF officials want Chinese authorities to provide an update on the quantity of gold squirreled away inside China’s vaults. That news, when it’s released, will be a wake-up call to the world. It will underscore the degree to which sovereign governments outside America value gold, and it will send the price of gold higher as global investors and savers comprehend the ramifications of the number China ultimately reports.


3,510 tons of gold.


That’s the estimate of China’s gold holdings that’s currently floating around the media. If that turns out to be the true figure, it would be more than three times the 1,054 tons of gold that China last reported officially in 2009.


That whisper number, I believe, is much too light.


Based on the quantity of gold China mines each year — it’s the world’s largest gold producer — and on the reported quantities of gold flowing into the country through Hong Kong and Switzerland, I calculate that China more realistically owns somewhere between 5,000 tons and possibly as much as 11,000 tons of gold.


Such a quantity would shock the world … because, primarily, it would raise enormous questions about where China collected all this gold.


China doesn’t mine enough to account for the spike. And the consumption of gold globally for jewelry and industrial uses takes up nearly 66% of global production, meaning that even if China bought every other ounce produced each year, that still would not account for the large increase in its holdings.


No, some of the gold in China’s vaults would have to come from a very large seller of gold … and the only large seller would be another central bank. (Which one — and you know which one I’m talking about — is a subject for another day.)


Instead, let’s stay focused on what China’s quantity of gold would mean to us directly…



China – Golden Protection


It would be a clear indication that China is establishing the yuan as a competitor to the dollar. Lots of Western commentators will laugh at that — a communist country with a reserve currency? They are so blinded by historical norms — the dollar’s reserve currency status for the last 70 years — that they fail to accept that history is ever-changing. The status quo is always in flux.


It would also be a clear indication that gold isn’t an archaic form of currency. It’s a very modern currency, one that serves a very real and useful purpose today as disaster insurance. It’s just that it’s a form of currency that government cannot manipulate, which explains why U.S. monetary officials routinely pan the metal as essentially useless.


The rest of the world doesn’t feel that way.


They see gold as the financial asset that it has been for thousands of years … which is why nations including Germany, Switzerland, Austria, Belgium, the Netherlands, France and others are repatriating (or looking to repatriate) their national gold held in the Federal Reserve and the Bank of England.


China’s report to the IMF, when it comes, will be the next big event to highlight the importance of holding gold today.


I say it all the time, but the message remains crucial to your financial well-being: Buy gold. Buy it often. Stash it away in whatever you deem the safe place (not a bank safe-deposit box). And sit patiently. The world is on the verge of a golden shock that will redefine global power … and likely send gold prices marching higher.


Until next time, stay Sovereign…


Jeff D. Opdyke
Editor, Profit Seeker


The post China Is About to Shock the World appeared first on The Sovereign Investor.

China Henry Paulson Dealing With China
China

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http://www.valuewalk.com/2015/05/china-gold-rmb/

China Is About to Shock the World

Posted By: The Sovereign InvestorPosted date: May 10, 2015 08:40:41 AMIn: Politics78 Comments



We are on the verge of a golden shock.


I wrote recently about plans by the International Monetary Fund (IMF) to include the Chinese currency as one of the reserve currencies that back the IMF’s so-called Special Drawing Rights.


Well, there’s another facet to that story that you need to know … and it echoes the warnings I first began voicing in early 2014.


As part of the IMF’s plan to bring the yuan into the basket of reserve currencies, IMF officials want Chinese authorities to provide an update on the quantity of gold squirreled away inside China’s vaults. That news, when it’s released, will be a wake-up call to the world. It will underscore the degree to which sovereign governments outside America value gold, and it will send the price of gold higher as global investors and savers comprehend the ramifications of the number China ultimately reports.


3,510 tons of gold.


That’s the estimate of China’s gold holdings that’s currently floating around the media. If that turns out to be the true figure, it would be more than three times the 1,054 tons of gold that China last reported officially in 2009.


That whisper number, I believe, is much too light.


Based on the quantity of gold China mines each year — it’s the world’s largest gold producer — and on the reported quantities of gold flowing into the country through Hong Kong and Switzerland, I calculate that China more realistically owns somewhere between 5,000 tons and possibly as much as 11,000 tons of gold.


Such a quantity would shock the world … because, primarily, it would raise enormous questions about where China collected all this gold.


China doesn’t mine enough to account for the spike. And the consumption of gold globally for jewelry and industrial uses takes up nearly 66% of global production, meaning that even if China bought every other ounce produced each year, that still would not account for the large increase in its holdings.


No, some of the gold in China’s vaults would have to come from a very large seller of gold … and the only large seller would be another central bank. (Which one — and you know which one I’m talking about — is a subject for another day.)


Instead, let’s stay focused on what China’s quantity of gold would mean to us directly…



China – Golden Protection


It would be a clear indication that China is establishing the yuan as a competitor to the dollar. Lots of Western commentators will laugh at that — a communist country with a reserve currency? They are so blinded by historical norms — the dollar’s reserve currency status for the last 70 years — that they fail to accept that history is ever-changing. The status quo is always in flux.


It would also be a clear indication that gold isn’t an archaic form of currency. It’s a very modern currency, one that serves a very real and useful purpose today as disaster insurance. It’s just that it’s a form of currency that government cannot manipulate, which explains why U.S. monetary officials routinely pan the metal as essentially useless.


The rest of the world doesn’t feel that way.


They see gold as the financial asset that it has been for thousands of years … which is why nations including Germany, Switzerland, Austria, Belgium, the Netherlands, France and others are repatriating (or looking to repatriate) their national gold held in the Federal Reserve and the Bank of England.


China’s report to the IMF, when it comes, will be the next big event to highlight the importance of holding gold today.


I say it all the time, but the message remains crucial to your financial well-being: Buy gold. Buy it often. Stash it away in whatever you deem the safe place (not a bank safe-deposit box). And sit patiently. The world is on the verge of a golden shock that will redefine global power … and likely send gold prices marching higher.


Until next time, stay Sovereign…


Jeff D. Opdyke
Editor, Profit Seeker


The post China Is About to Shock the World appeared first on The Sovereign Investor.

China Henry Paulson Dealing With China
China

​China will falsify that information whichever way it needs to be.

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I did some reading about this a while back when China first said they wanted to release a gold backed currency. I seem to remember they've recently made a deal with Australia and a couple other countries to trade in yuan (I could be wrong).

Anyway, they one thing I remember reading is about all the illegal mining that china has been doing all over the world. Namely in Africa where the law of the jungle seems to be the only one law really being enforced.

This would account for quite a large sum if the analysts projections I read were true (can't remember specifically). I believe his projections put their reserves upwards of 16k.

I also agree with CM above... whatever the figure they give is, you can be sure it won't be accurate.

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I did some reading about this a while back when China first said they wanted to release a gold backed currency. I seem to remember they've recently made a deal with Australia and a couple other countries to trade in yuan (I could be wrong).

Anyway, they one thing I remember reading is about all the illegal mining that china has been doing all over the world. Namely in Africa where the law of the jungle seems to be the only one law really being enforced.

This would account for quite a large sum if the analysts projections I read were true (can't remember specifically). I believe his projections put their reserves upwards of 16k.

I also agree with CM above... whatever the figure they give is, you can be sure it won't be accurate.

​They have been hoarding gold a while. I say within 10 years something will be enacted. More likely within 2-3 years if not sooner.

Edited by ukshep

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You cannot enforce anything across borders, and especially against the country who now
owns most of the worldwide gold, and India being the second. What will they do, toss sanctions
against China for not complying to their demands?

Demands do not remain demands when the country holding all the cards in question are theirs
to hold. At that point demands become requests only! They will not comply!

The next great economic power is and will be China. Why? Because that's the way it was designed
to be...
or so it would seem! things are never what they seem

"CONTROL - ALT - DELETE"... elite alt control

Edited by Cryptic Mole
Partial Delete

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I guess everyone was somehow intimidated by what I wrote above so I
have decided to delete that part that seemed to be the problem. I felt like
a stranger here as no one spoke with me for 24 hours, and that never
happens!

So now I guess lets just all play the conspiracy theory and conformity
game! Let's keep it all within those specially guided lines, and with no
thinking outside the box! You know what I mean, like being controlled...
being told what to think, and being told what we are allowed to say!

Let me tell you that isolation really sucks, and its almost as bad as having
one of your posts removed! I'll be sure to keep my deepest thoughts to
myself from now on though!

Yada yada yada... ROFL... if there's actually any humor in this at all. I'm
really trying to find it!

Edited by Cryptic Mole

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I guess everyone was somehow intimidated by what I wrote above so I
have decided to delete that part that seemed to be the problem. I felt like
a stranger here as no one spoke with me for 24 hours, and that never
happens!

So now I guess lets just all play the conspiracy theory and conformity
game! Let's keep it all within those specially guided lines, and with no
thinking outside the box! You know what I mean, like being controlled...
being told what to think, and being told what we are allowed to say!

Let me tell you that isolation really sucks, and its almost as bad as having
one of your posts removed! I'll be sure to keep my deepest thoughts to
myself from now on though!

Yada yada yada... ROFL... if there's actually any humor in this at all. I'm
really trying to find it!

​I always enjoy your posts but I don't always understand them and that's way I don't always respond.
I get the feeling you've been at this a long time and you're a bit over my head sometimes.
Isolation... I'm used to it I guess but finding you all has helped a lot.
:heartflowers:

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And the much bigger shock in the precious metals market will be how silver will
vastly outperform gold by at least 250% once that shock begins!

Silver is for the little guy; the average investor while gold is for kings! Remember
that before you pour your hard earned money into either!

Edited by Cryptic Mole

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​I always enjoy your posts but I don't always understand them and that's way I don't always respond.I get the feeling you've been at this a long time and you're a bit over my head sometimes.
Isolation... I'm used to it I guess but finding you all has helped a lot.
:heartflowers:

​I know, and thanx Lucy!

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​I know, and thanx Lucy!

​Im in the same boat as lucy :D

I spent 45 minutes on your post yesterday. Came to several conclusions and decided i could not be sure enough to respond.

Now i know why they call you Cryptic Mole! hehe

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​I know, and thanx Lucy!

​I do try and I think I'm slowly putting a few things together. It was all in the color right?
Sometimes I want to just jump in and wait for someone to correct me but I don't want to mess with your flow.
:1XqXnoz:

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​Im in the same boat as lucy :D

I spent 45 minutes on your post yesterday. Came to several conclusions and decided i could not be sure enough to respond.

Now i know why they call you Cryptic Mole! hehe

​I'm attempting to initiate a response no matter how bizarre it may be. That's because the information
you would be responding to was/is bizarre as well, but its always relevant for discussion... the next level
kind of off the wall stuff!

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