[Errol]

http://truthingold.b...-of-decade.html

[Errol]

The Hoarding Continues: China Has Imported More Gold In Six Months Than Portugal's Entire Gold Reserve

While the highly "sophisticated" traders that make up the gold market continue to buy or sell the precious metal based on whether the Fed will or will not do the NEW QE tomorrow (or just because, like Bruno Iskil, they have a massive balance sheet, and can create margin position out of thin air with impunity), China continues to do one thing. Buy. Because while earlier today we were wondering (rhetorically, of course) what China is doing with all that excess trade surplus if it is not recycling it back into Treasurys, now we once again find out that instead of purchasing US paper, Beijing continues to buy non-US gold, in the form of 68 tons in imports from Hong Kong in the month of June. The year to date total (6 months)? 383 tons. In other words, in half a year China, whose official total tally is still a massively underrepresented 1054 tons, has imported more gold than the official gold reserves of Portugal, Venezuela, Saudi Arabia, the UK, and so on, and whose YTD imports alone make it the 14th largest holder of gold in the world.

http://www.zerohedge...e-gold-reserves

[Old Nis]

You've really got to respect the Chinese as businessmen. They may have the business morals of a not-very-moral thing, but when they have signed a contract, they not only mean it, they can be trusted to keep their end of the bargain.

(I accept that doesn't sound very logical, but what I mean is that they would have no qualms going to Africa and using the latest Mercedes catalogue as a sales tool, but once they had signed on the dotted line, they would buy what they said they would, and deliver what they said they would, at the price agreed. See the anecdote at the bottom of this post *).

WRT Gold and Silver, this means that the Chinese will do anything to make sure that "I'm all right, Jack", whatever that translates to, in Chinese. They are going around the world and buying whatever production that comes to hand. Then, if they can buy the mines, they'll do that, too (are you listening, Australia? A fair number of your mines are now in Chinese hands). So that means they have first dibs on the production of those mines as well, using their vast dollar reserves to buy stuff that actually has future value before the US dollar becomes worthless. Then, they turned to their own miners, and have obviously told them "you have got to sell all your production to the Chinese government, if we want it. We'll give you a sensible price, but it's ours, unless we've got so much it's coming out of our ears (unlikely; China has lots of spare acreage to store it, and virtually unlimited dollars to buy with) or unless the price of gold starts to creep up. In that case, we'll release the production onto the market to keep the price stable".

It is quite obvious that they've been doing this for years; hence the "sudden" revelation, recently, of a big jump in gold stockpiles. They've also been doing it with copper and especially with any rare earth metals that they can get their mitts on. They have also told their own people (who have a very sensible relationship with PMs, like the Indians) that it's open season on buying Silver.

I don't know when it's going to happen, but sometime down the road, they will be able to turn round to the West and say either (i) Want a new iPhone Mk 25? So sorry, those rare earths are needed for Mr Wong in Outer China so he can buy his daughter her first iPhone. I'm sure, however, that Mr Liu in Hong Kong may be able to get one if you pay him enough or (ii) Sod off, round-eye. Oh, by-the-way, your toilet-paper currency is no good here, can I refer you to our brand-new Currency Exchange, they've got some gold-backed Renminbi you can buy; and while you're at it, our General Secretary says get your naval fleet out of the Western Pacific, or you'll suddenly find it really, really hard to get any raw materials for your computers.

Good for them, I say. At least their politicians have their own country's interests at heart, something our politicians don't. Ever.

* True story. When the Pakistani ISI were buying weapons (when the Taliban were on our side, errrr... no, not for the Taliban, you understand, we deny that completely...) they went to the Americans, who showed them an AK-47 in perfect condition. The Pakistanis said, OK, that looks all right, can we have a few thousand. The weapons delivered were rusted shit from stockpiles confiscated in Bosnia and Serbia. Yes, yes, I know that the family-run workshops in Darra will have reconditioned them for a few Rupees each, but still. Along comes the Chinese, with an AK-47 in perfect condition. The Pakistanis said "Um, look, we've er, seen something like this before". The Chinese said something along the lines of "Wah you think we are? F---ing gwaylo? OK, you pay us after delivery". The shipment arrives, on time, same price and perfect. And the next. And the next. Chinese markings, of course, but no-one needs a handbook for an AK-47. And we wonder why they are taking over.....

[Errol]

US 'to return to gold standard within two years', says Euro Pacific Capital chief Peter Schiff

http://www.telegraph...ter-Schiff.html

[DiggerUK]

Errol, on 31 August 2012 - 03:05 PM, said:

US 'to return to gold standard within two years', says Euro Pacific Capital chief Peter Schiffhttp://www.telegraph...ter-Schiff.html

Dream on, there will be no return to the gold standard.
Free market economics means the pog will find it's own price via the market.

http://blogs.telegra...-gold-standard/
..._

[Take Me Back To London!]

DiggerUK, on 31 August 2012 - 09:45 PM, said:

Dream on, there will be no return to the gold standard.
Free market economics means the pog will find it's own price via the market.

http://blogs.telegra...-gold-standard/
..._

The caveat I would add is that this is from Peter Schiff who predicted with accuracy and detail the financial crash.

[DiggerUK]

Take Me Back To London!, on 31 August 2012 - 10:34 PM, said:

The caveat I would add is that this is from Peter Schiff who predicted with accuracy and detail the financial crash.

My caveat to your caveat is that I never even heard of the guy when I started buying, so what makes my guruistic claim any less valid than his.
Time will tell. But hell will freeze before a gold standard returns.

I don't follow gurus, but I always look on the bright side of life.
..._

[Asheron]

[Errol]

DiggerUK, on 01 September 2012 - 09:20 AM, said:

But hell will freeze before a gold standard returns.

Pure gold standard, perhaps. But are you also excluding gold as trade settlement or as part of a currency system (gold certificate ratio, basket of commodities etc)?

I'm not.

[DiggerUK]

Errol, on 01 September 2012 - 10:40 AM, said:

Pure gold standard, perhaps. But are you also excluding gold as trade settlement or as part of a currency system.....

It is already part of the currency system, that's why bullion banks have their stacks.
Trade is already settled by direct currency swaps, or by using gold as a guarantee in the swap of the main international currencies....dollar,euro,yen etc. It is for that reason that the implications of the Eurocrisis are so spooky.

Digging out this story should remind us all what can happen at times. http://www.telegraph...he-market.html#

Schiffhead starting up this politial nonsense about a return to the gold standard, should tell everyone that the 'guru' has lost the plot.
There will be no return to a gold standard.
..._

[Errol]

Another interesting and thoughtful piece from Detlev Schlichter:

U.S. Republicans introduce gold standard debate – mainstream media go mental

http://papermoneycol...edia-go-mental/

[Errol]

DiggerUK, on 01 September 2012 - 01:00 PM, said:

There will be no return to a gold standard.

China may think otherwise.

[DiggerUK]

Errol, on 04 September 2012 - 10:32 AM, said:

China may think otherwise.

Gold is the ultimate currency of war.
The only standard gold will support, is the waving of a war standard.
Be careful of what you wish for, is what an old chinaman once told me.

There will be no return to a gold standard.
..._

[Asheron]

This post has been edited by Asheron: 08 September 2012 - 11:03 AM

[Take Me Back To London!]

DiggerUK, on 04 September 2012 - 05:19 PM, said:

Gold is the ultimate currency of war.
The only standard gold will support, is the waving of a war standard.
Be careful of what you wish for, is what an old chinaman once told me.

There will be no return to a gold standard.
..._

Countries have come off gold standards so they could finance big wars by expanding their balance sheets by money printing.