Although the official figures for China’s Gold reserves are 1054 tonnes its clear that they have been buying up national production while at same time secretly buying physical on the dips. One thing for sure is Chinese gold consumption will continue unabated and soon surpass India.

Considering China’s is the world’s largest gold producer…and their consumption
will be twice their production level what do you think that means for the price
of Gold? Gold 10,000…here we come.

From Shanghai Daily…

CHINA’S gold consumption will more than double the production of bullion by 2015,
the Ministry of Industry and Information Technology said. But China, the second-
biggest consumer in the world after India, will continue to see a wider deficit
in gold supply in the country as consumption is set to surpass 1,000 tons in 2015,
the ministry said in a statement published on its website yesterday.

Although consumption in India remained above China’s in the first three quarters
of the year, the World Gold Council predicts China to become the biggest market
this year, according to its quarterly report unveiled this month.
Since 2007, China has been the world’s biggest gold producer. It aims to produce
between 420 tons and 450 tons of gold in 2015. The country is also the biggest
old jewelry producer, taking up about 60 percent of the global production, according
to the ministry.

According to Jim Willie massive amounts of physical gold has gone East already as faith in allocated accounts have taken a hit due to recent scandals.

Since March 2012, a whopping 6000 metric tons of gold bullion has been shipped from London to the East, primarily China. The circumstances behind the shipments are murky, but they indicate private off-market transactions that are intended to avoid publicity. My suspicion is that old wealthy Chinese families had their Allocated Gold Accounts improperly used in leasing practices by London bankers, associated with posted margin on a gaggle of leveraged contracts spanning from sovereign debt to currencies. The trades went sour. Margin calls were enforced with lost gold in a grand forfeit, the London bankers feet put to the fire reportedly. Publicity was avoided, but in the process a tremendous amount of gold was forfeited. With the gold went a transfer of power, to the East. They will dictate terms of the new trade settlement system. They will become the world’s more prominent lenders. They will control the next geopolitical chapter.

On thing is for sure, the Chinese are well aware of the impending Global financial collapse and are preparing themselves and so should we.

 

Source: The China Money ReportSilverDoctors

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