People’s Bank of China will take down global gold price manipulation

Gold has been flowing East for a decade. When the West wakes up to
the fact that their gold is gone, they will no longer have sound
money with which to back a currency. The world has only been off
a gold standard since 1971 and every currency collapse in history
has used precious metals to backstop the regimes new currency.
In the U.S. that will not be possible in the future, we have bet the
farm on fiat currency. Currency debasement has been tried time and
time again since civilisation started using money. It has failed every
time…perhaps this time it will work?

Want China Times
The People’s Bank of China, China’s central bank, is the world’s
biggest gold hoarder and the bane of Wall Street traders, reports
the Chinese-language financial news website BwChinese, citing a
Hong Kong financial analyst.

Leung Hai-ming told the portal that China’s central bank took
advantage of the US Federal Reserve’s quantitative easing program
in 2013, when the price of gold fell by 27%. The bank bought in over
1,000 tonnes of gold, representing almost one third of the world’s
3,756 tonnes last year.

There is reportedly less than 180,000 tonnes of gold reserves left,
and only 20% of that remaining gold is tradable. This means that
the People’s Bank of China will likely keep hold of the gold,
limiting the gold trading volume — a concern for both the US
government and Wall Street traders.

Leung said that the US Federal Reserve loans gold to investment banks
such as Goldman Sachs, Citibank, JPMorgan Chase, Morgan Stanley and
others every year to trade in the market. The amount of gold ranges
between 400-500 tonnes and the move acts to artificially suppress gold
prices. When the prices are in their favor, these investment banks buy
back the gold and return it to the Fed.

But this measure is absolutely useless because China’s is hoarding the
gold and does not follow the rules, Leung said. When it sees that gold
prices are going down, the first thing it does is buy them, and does
not sell when prices continue to fall. It seems that Wall Street cannot
do anything to counter China on this, according to Leung.

The analyst said that the People’s Bank of China is putting pressure on
Washington and Wall Street as the US dollar has been linked with gold
prices since its rise as the leading global currency. The Fed hopes to
manipulate gold prices in its favor, Leung said, but the Chinese central
bank is standing in its way.


  1. Gordon says:

    It is amazing these so called “Wall Street Experts” have failed to research history. From the Grecian 3RD century BC to the demise of the Roman Empire along with several more empires until post WWI Germany, it hasn’t ‘SUNK IN’ their rapaciously greedy minds that when fiat money is created, coinage devalued/debased and central banks printing paper currency like lottery tickets, there is a 100% FAILURE rate. They can only think forward to the closing bell. The Chinese think forward a century then follow through by creating it.

    • Mikey says:

      You forget of course that THEY, the Wall St experts, do not care. What they trade in their business hours is not for the good of the people of the nation. What they trade from personal wealth is probably also being spent on gold as a hedge to the consequences of their daytime job. THEY will be the same sh*t that rises to the top when the economy goes down because THEY will have their own gold…

      Everyone else is fodder.

  2. HYMN says:

    China has it’s problems that’s for sure. They may decide to share them with us,using Gold as their tool.I think the world and especially China are tired of being under the U.S. thumb. The new tariff on solar products won’t help our relations with them, and in the near future we will wish we were on better terms.

  3. […] acheter de l’or, du métal qui disparaît ensuite du circuit occidental, donc du marché. Le site The China Money Report y a consacré un article en anglais, dont voici la […]

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  5. Steve says:

    There is no doubt that China is buying lots of gold, and they are doing the right thing. The theory that the west’s gold is dwindling looks sound but here’s the thing….the experts have been pounding out this theory of west-to-east shift in bullion for several years and prophesying the emptying of western vaults and defaults in the COMEX and the LBMA.

    And it hasn’t happened.

    Why not ?

    It would assist observers and the sneeringly named ‘goldbugs’ if the so-called experts turned their immense analytical skills to putting forward the reasons why gold manipulation still looks in fine fettle, why the threat of regulatory investigation of possible rigging has not made the slightest difference to short seeking on the gold futures market, and why there have been none of the predicted defaults when buyers stand for delivery.

    Now that sort of commentary would be very helpful.

    Experts … over to you.

    • Karl Schneider says:

      Steve , the answer is simple . Nothing has stopped the US to suppress the price of gold because NOBODY has access to the amounts of swaps , loans and leveraging of the few physical gold still into the hands of the western central banks or to their REAL inventories ; it’s a state secret .The fiat currencies system has very cleverly been coupled to an identical fiat paper gold system . This machiavelic combination makes gold prices daily quoting completely irrelevant .
      The key to this successful engeneering is the complete ignorance of it by the public at large and the almost complete control of the medias by the western states.Fiat money has bought everyone out there .
      Then the blind west let all physical gold go east at bargain levels . It’s a remake of the Fall of the roman empire : invasion through the borders , evasion through wealth and gold exit . There is no other end than war somewhere down the road . Too bad , but what else will be left to uncle Sam than the use of force when the king will appear naked to all ?

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