- Three events that I would like to highlight that effects the price of gold positively. In fact, the gold rocket will likely be lit by these 3′fuses’. The Chinese have always accepted gold for money for thousands of years and many fallen empires. It is instinctive and unspoken. Parents accumulate gold for their children as marriage gifts for the future. It is not like they are taught gold investment 101 formally. It is just the culture: Gold is money, the Chinese knows it!
China pushes silver and gold investment to the masses
…Apparently China is pushing the idea of buying gold and silver for investment purposes to the general population in the way that Western television sells soap powder. ….
The report notes that China’s Central Television, the main state-owned television company, has run a news programme letting the public know how easy it is to buy precious metals as an investment. On silver investment the announcer is quoted as saying ” China has introduced its first ever investment opportunity for silver bullion. The bars are available in 500g, 1kg, 2kg and 5kg with a purity of 99.9%. Figures show that gold was fifty times more expensive than silver in 2007, but now that figure has reached over seventy times. Analysts say that silver has been undervalued in recent years. They add that the metal is the right investment for individual investors and could be a good way to cash in.”
What appears to have happened in China is a total relaxation of strictures on holding precious metals by the individual with the government pushing gold and silver as an investment option, seemingly at every opportunity. This is a far cry from the situation only a few years ago where the distribution of gold and silver was strictly controlled. Now, the Thunder Road Report notes that every bank will sell gold and silver bullion bars in four different sizes to individuals and gold related investments are said to be soaring in popularity. …
Chinese sovereign wealth fund dumping dollars for strategic investments like gold
Several reports are coming out of China that there is pressure on state-controlled organisations – notably the country’s main sovereign wealth fund, China Investment Corporation (CIC) to rapidly build investment in non-Chinese enterprises. While the CIC itself, with apparent access to some $300 billion in funds – and the possibility of more from the government – may be concentrating on hedge funds and other investment entities, there is another sector for Chinese state-owned companies looking at major investment in commodities. Indeed with the funds available as China seems to be dumping its US dollars in favour of more concrete assets, virtually no minerals sector is safe from Chinese participation.
Probably the most interesting of the recent reports of what is happening with Chinese sovereign wealth fund investment outside China has come from Paul Mylchreest’s Thunder Road Report where an ex-U.S. intelligence service member is quoted. He reports that he has a friend who is in the Chinese Sovereign Wealth fund sector who says - hearsay I know and it wouldn’t stand up in court - indicated that the wealth fund analysts were working all hours of the day and night trying to put investment deals together – particularly in the oil and precious metals sectors. The conclusion is that China recognises that the U.S. dollar is going to tank and it wants to convert as much of its trillions of dollars of holdings into strategic assets as possible before the collapse really takes hold.
The trouble is there is too much money available chasing too few assets – and too little time available – or such is the conclusion. As a result the Chinese government seems to be doing its utmost in trying to persuade the Chinese public to buy gold and silver by relaxing the restrictions – it’s now easier to buy precious metals in China than in the U.S. – and by pushing gold and silver investment on state-owned television. If this continues the likelihood is that China will permanently overtake India as the world’s biggest buyer of gold and silver, while the country’s store of wealth will help shield it against further western economic collapse.
If this is indeed the case then it must be likely that the country is also building its own gold reserves – perhaps surreptitiously – through creative accounting by buying by a state entity, but not through the Central Bank itself where such sales would need to be reported. Positive for gold looking forward.
Hong Kong recalls gold reserves, touts high-security vault
Hong Kong is pulling all its physical gold holdings from depositories in London, transferring them to a high-security depository newly built at the city’s airport, in a move that won praise from local traders Thursday.
The facility, industry professionals said, would support Hong Kong’s emergence as a Swiss-style trading hub for bullion and would lessen London’s status as a key settlement-and-storage center.
- This removal of gold from London suggest a lost in confidence in the Anglo-American, London-New York financial world. All those naked gold shorts are about to get a violent rude awakening. Keep in mind that Dubai is also setting up their gold exchange and there are rumored moves by Germany to remove their physical gold from US to back home. Hear the death knells, gold shorts?
- Nothing like a little truth in humor!
An old Chinese shopkeeper in China Town was asked why he pays the Chinese mafia protection money and why he would not get involve in the police efforts to nab the mafia. This is his reply :
“You either get rob illegally by the mafia or get rob legally by the government. Either way you get rob! But with the mafia, you at least get protection. Since everyone is paying the same protection money, I am just as competitive as my rival.
The government robs you legally. It pretends to protect you and pretends to make the place safer. So who is the bigger Mafia? “
- Gold has breached US$980 and is well on its way to overcoming US$1000/ounce soon. The attack upwards this week is all the more remarkable because the USDX (US Dollar Index) held up pretty well. Usually, upon USDX weakness then only will gold rally. Something has changed. Jim Willie opines :
The latest development in the gold world is highly favorable. Summarize by saying from the rooftops that GOLD LEADS THE CURRENCIES in price movement. Gold is not only a metal, but the most important of currencies, whose importance will soon be confirmed on a worldwide basis. The enlightened realize that if gold had been a core to the banking systems, and to the currency systems, that the entire bank credit crisis would not have occurred. …
Gold has begun to respond finally to the global ruin of money, to the Western government fiscal ruin, and to the ruin of the United States and United Kingdom banking systems.The price movement in gold & silver has suddenly turned favorable, although this is an early stage, in spite of the lack of decline in the USDollar. That is the main point. Gold has risen without a lead by the crippled USDollar.Silver has followed. In the last couple hours when this article was penned, gold has risen to 992 and gold risen to 15.90 in nice continued movement, both without any jiggle even to the USDollar or US stock market indexes. The crude oil price, subject of much debate concerning its tether as hedge to the USDollar, has been quiet as well. Gold has begun a stealth rally, an exciting one to come!
CLOSE-UP PICTURE ON GOLD
Like an EKG chart, the very short-term daily chart resembles the electrical activity of a human heart. Except this golden heart has begun to race fast. Watch as even the gold community will show doubt in believing the gold price move. They are so drained of emotion from failed rallies at the $1000 price gate, that they might need a surge in the gold price over $1200 in order to feel glad or giddy, let alone believers in the breakout. The important point is that gold has risen out of its tight 940-965 range in effect for several weeks, and RISEN. The gold price has risen without benefit of a weaker USDollar. It will next challenge the $1000 level in a natural progression. The real debate is whether the gold price will surpass the $1000 level with or without a key signature event. In my view, it simply does not matter. That is like asking whether the sun will rise with or without clouds.
BIGGER PICTURE FOR GOLD
The bigger picture must address the three pennant pause patterns extremely clear to view. Only the precious metals have broken out of the tight pattern, enough to warrant early conclusions. My conclusion has a headline that gold & silver now should be recognized as leading the USDollar and other currencies.The Competing Currency Wars will continue on their merciless path of global asset destruction and economic deterioration. Damage to other currencies tends to render the USDollar is less pathetic light, no more, no less. The nations that drop the USDollar standard and abandon the USDollar structures will be the first to emerge. Those nations with ample reserves will also fare well. China will remain a mystery. It hitched its wagon to the US$ parade for too long, finds itself in possession of too many US$-based bonds, and is greatly dependent upon a US$-priced global export trade. While debate continues concerning the Middle Kingdom, they will continue to disrupt the US-UK Sphere of influence and global domination.
The gold price has clearly broken out of its pennant pause pattern. The magnitude of the potential lift is roughly $70, from 910 to 980. Look for a 70-point lift from the breakout, which should take the gold price to around $1030 soon, real soon. The vast energy built over the last several months will come to power the move onward and upward.
PROPAGANDA VS REALITY
Just today, typical rubbish commentary came from the New York Stock Exchange floor…..The charlatans on the NYSE explain the gold price moves up as technically based (therefore not real), as owing to the weak USDollar (not true in the last couple weeks at all), as a safe haven (intriguing if an epiphany is in progress), and as the result of light volume leading to high volatility (the ultimate in lame excuses). The Wall Street gang has really lost a lot of credibility. Why anyone even listens to them is a good question. …
The Chicago trading pits integrate much more brain wattage than the NYSE floor, and far less bias based in crippling propaganda. The wisdom that emerged from Chicago pointed to the gold price rise as a result of two important factors that seem SPOT ON. Chicago buzz centers upon the perceived Chinese demand for gold, both at the official government level (sovereign wealth funds) and the popular street level (retail coin & bar buyers). ….
The Chinese announced they will permit their state-owned firms to dishonor elements of futures derivative contracts, and thus limit their losses, on a selective contract basis.Crude oil and metal contracts were specifically mentioned. Implications will be difficult to sort out, but on its face, it appears that China has given Wall Street a Big Fat FU as it decides whether to use megaphone repeaters of the defiance in a universal or very selected fashion. …. Add Japan to the mix, as they have voted out of power the party in control for a full decade. Opposition leaders have clamored for support of the USTreasury Bond only if denominated in Japanese Yen currency. They won!
PARADIGM SHIFT TIDBIT
…Today’s news includes a story receiving no press coverage. The real news network (INTERNET) is abuzz over an announcement by Hong Kong to yank its physical gold holdings from depositories in London, transferring them to a high security depository newly built next to the Hong Kong airport. That would match the layout used by Zurich Switzerland. MarketWatch reports that “The facility, industry professionals said, would support Hong Kong’s emergence as a Swiss-style trading hub for bullion and would lessen London’s status as a key settlement-and-storage center.” See the article (CLICK HERE).
A reliable banker contact mentioned in response to this story that Moscow will soon emerge as the next super hub. This is yet another link in the chain of Paradigm Shift. The shift is away from New York and London, which will have distinctions before long similar to those of Rome and Athens during their empire collapses. The United States and United Kingdom can no longer wield real power to provide for a robust and sustainable business environment during paradigm change. Focus will eventually shift to the COMEX and LBMA, the major commodity exchanges. A while back, my May article about “Hitmen Contracts to Bust COMEX” (CLICK HERE)
This is a potentially highly toxic situation for the London Bullion Market Assn. Given how they harbor naked shorts without collateral for gold & silver, one could conclude that they sell every gold ounce many times over. So when the gold bullion is removed systematically, enormous and substantial ripple effects will come from short covering.
FINAL NOTES OF ANNOYANCE
…. Rumors swirled on Tuesday of an imminent large US bank suffering a death experience. See Wells Fargo for a likely candidate. Its bank stock option put contract activity hinted of a walk down Death Row. But wait! They passed the Stress Test, did they not ?!? Yes, they did. They passed the rigged stress tests that contained very little programmed stress and avoided the entire second round of bank assaults. Even USFed Chairman Bernanke (last guy to figure out anything anything anything) noted that the commercial mortgage sector will deliver powerful losses to US banks. Those losses will show up this autumn and winter, with big blows next spring. The already insolvent big US banks will probably admit their ruin by then. Maybe when such facts are more clear, the nation will be subjected to a US Bank Holiday. During the holiday, watch Wall Street and other Big Banks demand mergers with the scores of midsized regional banks. Instead of liquidation of Big Banks, expect them to take full control of the entire national banking structures.
- Who does the World Health Organization really work for? I wonder? The actions taken for this swine flu epidemic benefit Big Pharma greatly. Things are very seldom what they appear to be. Even the devil masquerades himself as an angel of light. Mercola.com reports :
The document on the WHO website linked below states that it is common procedure to release pandemic viruses into the population in order to get a jump ahead of the real pandemic, so as to fast track the vaccine for when it is needed.
In Europe, some manufacturers have conducted advance studies using a so-called “mock-up” vaccine. Mock-up vaccines contain an active ingredient for an influenza virus that has not circulated recently in human populations and thus mimics the novelty of a pandemic virus.
According to the website, “Such advance studies can greatly expedite regulatory approval.”
Source: World Health Organization
Dr. Mercola’s Comments:
On June 11 the World Health Organization (WHO) raised its swine flu pandemic alert from a 5 to a 6. Phase 6 is the highest level alert, and reflects the speed with which a virus is spreading — not its severity. This classification also allows for a vaccine to qualify for a “fast-track” procedure for licensing and approval, and this process is now ongoing for the swine flu vaccine.
What you may not know, however, is that WHO, together with health officials, regulatory authorities and vaccine manufacturers, have been working since 2007 – long before this new “threat” of swine flu emerged – to “explore a broad range of issues surrounding the regulatory approval of pandemic vaccines.”
According to the WHO website:
“Ways were sought to shorten the time between the emergence of a pandemic virus and the availability of safe and effective vaccines.”
One such method used in Europe is to conduct advance studies using a “mock-up” vaccine that contains an active ingredient for an influenza virus that has not circulated recently in human populations.
When testing these mock-up vaccines, it is very possible to release the novel influenza virus into the population, as its purpose is to “mimic the novelty of a pandemic virus” and “greatly expedite regulatory approval.”
Government officials have other tricks up their sleeves to ensure these new, barely tested vaccines easily make it to market as well, such as:
- Labeling the vaccine a “strain change” rather than an entirely “new” vaccine. This method states the new vaccine has built on technology used to produce vaccines for seasonal influenza, and the change for the pandemic vaccine is similar to a strain change used to produce a new seasonal vaccine each flu season.
In the United States, vaccine manufacturers are required to submit fewer data if they already have a licensed flu vaccine and will use the same manufacturing process for the pandemic vaccine.
- Using a “rolling review procedure.” This allows manufacturers to submit sets of data for regulatory review “as they become available.” In other words, they’re free to distribute the vaccine and then submit the safety data later on.
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