Could China Revolutionize the Gold Market?

December 7, 2003
Author: Jim Sinclair

I estimate that the Gold Community now represents approximately 500,000 investors worldwide. A good percentage of these people read this site which for the first three days of this month averaged 1,200,000 hits per day.
 
We are presently adding another high speed server just to keep up and have a third one on order. 

Doing the math strongly indicates that China may well revolutionize the world market for gold. As the Chinese economy grows - assuming the article below is even 50% correct - the face of gold will change forever.

All world central banks could in a generation be sucked dry of gold if they sold earlier in the cycle. And with estimated gold production not expected to even scratch new demand, one has to assume the price must rise significantly if only for the reason that China now permits gold investment in the traditional form. 

Can you imagine the huge COT short position looking at this gold freight train coming right at it and sitting there ambivalent? Perhaps COT should look at changing its name to S.P.L.A.T. (Sitting Pathetically Looking At Train).

Chinese residents welcome gold trade

SHANGHAI, Dec. 5 (Xinhuanet) -- A resident in Chengdu City of southwestern Sichuan province bought five ounces of gold this week in the Chengdu branch of the Merchants Bank of China at the price of 16,647.5 yuan (2,000 US dollars), becoming the first investor to try physical gold trade in China.

Just half a month ago, the Bank of China (BOC), one of the four major state banks in China, began selling gold-backed paper items to Chinese individuals in Shanghai. The trade was welcomed by locals with one of the largest buys reaching 2,500 grams of gold in paper.

http://www.jsmineset.com/home.asp