It’s always interesting when the mouthpieces for Wall Street parade their latest advice to an unsuspecting public. In the last few days we’ve seen registered and total gold reserves fall to new lows at the Comex. JPMorgan also saw new lows in its registered holdings of physical gold, while Brinks saw a 24% of it’s holdings vanish in just one day. One has to wonder just how long the crooks can keep shorting a paper market when they run out of physical? In a market where everything is rigged, soon or later the music stops and you have to stand and deliver. That time may be fast approaching. Apparently, there are others who take this view as well. For every ounce of physical gold that’s leaving the U.S. there seem to be plenty foreign buyers in the East eager to take the world’s oldest reserve currency off our hands. This scenario was discussed in a previous U.S. cable, and while the Federal Reserve may be perfectly willing to facilitate a lower gold price, China seems to be ready and willing to capitalize on that price suppression by buying up everything not nailed down.
“China increases its gold reserves in order to kill two birds with one stone”
“The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): “According to China’s National Foreign Exchanges Administration China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency. They don’t want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar’s role as the international reserve currency. China’s increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB.”
And now a few charts to ponder….