Enter The Dragon's Den : China's strategic Gold Swipe/THIS IS THE FINEST CHINA/ GOLD OVERVIEW WRITTEN PERIOD
For over a decade we have been hearing about the term consolidation in the PM market. That once this occurs you can see the price of Gold and Silver skyrocket. Year after year those fixated on the paper supply side of ETF's and futures contracts have seen the PMs go up and down in a wild range of spot price, that calling a bottom or a top is fool hearty. While the vast majority dedicated their energies to the fight of PM vs the Fiat of the world, there has been an operation at work so insidious so diabolically genius that until recently the magnitude of the operation was virtually unknown.
My first inclination of this beginning happened when I was a lowly commodity broker facilitating the very specialized market of strategic metals for a large European firm doing business in NYC. My job was to be involved in every aspect of the deal for my direct clients. This involved dealing with the workers of the mines in Zimbabwe, to the shipping of the ORE and Ingot from South Africa to the Netherlands where the wares are refined and readied to be sold to customers the world over. During this time we started coming in contact at every level from Chinese nationals. I have seen first hand the way they come in. Not like us Westerners, they do not come to African or Developing nations with the intent to control and pilfer their resources. No they come to create mutually beneficial partnerships that work in the favor of both countries. What a revolutionary concept! This became the reason why wherever China goes in the developing world, they are more than willing to do business with the her. Her business men and investors help build roads and much needed infrastructure, they bring resources to bear that help the indigenous population much need food, medicine and education. In return the host countries throw out the red carpet for China. So you really can attract more flies with honey.
The most empirical evidence for this is the staggering level of business that China does with the Middle East and North Africa. So what is America's response to this? Well Gunboat Diplomacy of course. What China brings in aid and infrastructure, we come with hubris and machinations of regional dominance. China helps with oil discovery, we bomb, China creates opportunities for the indigenous populations, we give them sanctions. China seeks business partnerships with every nation but alliances with none. We bully and threaten and sow discord. China invests in Africa, what do we do? We militarize and destabilize with AFRICOM. In other words we are the total failures of a archaic foreign policy written by men who have no concept of how the world works today. A limited, short sighted policy of contention and containment geared for fighting soviets but obsolete in dealing with the current high speed economic-multidimensionalism. We are the old fuel swigging raucous 1960's muscle car, in an era of high speed modern exotics. It is a game that we are losing.
This brings us to the main issue, we know that Gold is not only the wealth preserver but it is the ACE in the sleeve, the trump card against the forces of Fiat currencies and the Central Banking Concept. The nation that posses the most will be the one left standing when the dust of the once mighty Anglo-American Banking System finally crashes into the dustbin of history. Since the devaluation of Gold and Silver in April, the effect had a few things going for it:
1. It drove enough fear into the hearts of the weak handed, causing them to dump what they have into the steel jaws of the jackals of finance.
2. It drove the short sighted, short term profiting Speculator out of the market. Leaving more for the Jackals of Finance.
3. It drove up acquisition premiums
4. Finally it created a buying spree the likes of which the world has never seen with Asia, particularly China and India being at the forefront.
Today we are at a juncture that in light of "low" spot price of PM's there is no one selling and everyone is buying. Further putting a choke hold on the Ponzi schemes run by Goldman Sachs, JPM, the Fed and COMMEX. All of the just mentioned characters either have no PM in the vaults (COMMEX and NY FED) or there is not sufficient metals to meet contractual futures obligations (COMMEX, JPM, GS) Which will lead these cronies to default. This mad buying has caused many sovereigns to do things that are considered irrational . China for instance in the last decade has set up various Sovereign Wealth Funds through which they are purchasing vast stores of PM from the Bullion Banks themselves. The Main monster in this den of Dragons is the Sovereign Wealth Fund CIC ( China Investment Corp) an almost half a trillion dollar monster whose sole purpose was to consume worthless US dollars, and use them to buy valuable assets.
This past week we have heard that Swiss refiners delays have reached 5 weeks. How and why? After much careful digging it seem that the Chinese are heading the train off at the pass and purchasing Gold Ingots at point of manufacture paying more than what a refiner would pay. Once again adding a quiver to the long list of strategic metals and rare earth mineral mines, China is cornering the market on Gold. People tend to forget also the vast wealth the China always had in Gold from it's historic dynasties. This was confirmed by Steve Quayle's top level Chinese source. It was said to Mr. Quayle that the vast wealth of Ghengis, Kubla, Hahn and Ming Dynasties have all been preserved and stored from the prying hands of Western Imperialists for hundreds of years.
Consider that China has a mysterious "Shadow Banking" cartel that is as secretive as anything in the west and one begins to see a clear picture of how this machine works in light of current economic malaise. A slowing economy, labor issues, and currency wars has not stopped the ravenous buying of Gold by the Chinese. This can only be done by the massive wealth within the Shadow Banking sector as well as the vast stores of US dollars. So kill two birds with one stone, with the Dollar buy up some Gold at the same time help bring down the US, A perfect plot if I do say so myself.
CIC moves the gold, in other words it "Launders" it. This way it shows nothing on it's books and only very little holdings at any given time. Giving the impression of innocuous innocence. Pretty amazing for a firm that is the largest handler in the world of foreign exchange reserves. There is no better way to spend all of the worthless Federal Reserve Notes than in precious metals.
So what does that mean for us? Well once again proof emerges that American is being raped, robbed and pillaged. We have five mints in the Country and 6 or 7 major dealers. It is only a matter of time before a Chinese national with a well rehearsed West Texas accent begins to call these places and make an offer that they can't refuse, $100 - $200 over spot? Folks we have in this country about 600,000 and 800,000 oz of gold left. In the grand scheme of things that is peanuts. In a massive emergency run in gold the supplies would last three weeks at the most!!!
Please the time to be sitting on the fence is over get off the fence or you will be impaled by your lack of taking action. Be prepared. COPYRIGHT-www.stevequayle .com -MAY BE REPRODUCED IN ITS ENTIRETY AS LONG AS LINK IS INCLUDED to stevequayle.com-ALL RIGHTS RESERVED
Jun 12, 2013