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More on China urging its citizens to buy gold.

 

http://seekingalpha.com/article/159962-chi...cle_lb_articles

 

It is also clear that China is literally “putting its money where its mouth is.” China has devoted an enormous amount of resources building up its domestic gold mining industry, soaring to #1 in the world this decade, and it recently stunned the world with the announcement of a huge increase in its official, national holdings (see “China now has 5th largest gold reserves”).

 

China's gold reserves jumped by 76% from its last announcement in 2002 – up to 1,054 tons. Given that official government purchases on the open market are recorded and announced, this means that rather than buying all that gold openly on the market (which would have driven up the price while they were buying) China has been accumulating gold surreptitiously, through buying up its domestic production – strongly suggesting that ramping-up its gold production was part of a long-term strategic plan to become one of the world's largest (if not the largest) holder of gold among governments.

 

As I have written previously, there appear to be two, related goals in this strategy. Most-obviously, the Chinese government is now spending its U.S. dollar-holdings faster than it is accumulating them. This is no surprise, given the increasing rhetoric (and increasing intensity) expressing concern about the reckless fiscal policies of the U.S. government – and its worries over the future value of its vast accumulation of U.S. dollar-based debt.

 

The second goal which the Chinese government appears to be moving toward is having its own currency, the renminbi, replace the U.S. dollar as the global reserve currency. There have simply been too many actions on this front to list them all, however some of the more significant initiatives are bilateral trade agreements (which exclude the use of the U.S. dollar), currency swaps with its trading partner (which substitute the renminbi in bilateral trade), and authorizing its principal, coastal exporting cities to begin conducting most or all of their trade using renminbi.

 

These initiatives are entirely separate from the buying-spree the Chinese government has been engaging in, dumping U.S. dollars for a vast assortment of “hard assets” - primarily commodities and commodity-producers.

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Obama is too young to know about the monetary meaning and value of gold. That's why the US might really screw up here.

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Does that make us...old? :unsure:

Younger people who know about it are an exception. So I wouldn't expect too much from the present administration. How old was Bernanke in 1971?

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Younger people who know about it are an exception. So I wouldn't expect too much from the present administration. How old was Bernanke in 1971?

17 for most of it. I was 17 for most of 1992 and had no idea of the reasons for and the meaning of the UK's departure from the ERM, and it didn't feature in my economics degree the next year either. The parallel is that Bernanke would have started his in 1972. And we both played saxophone :unsure:

 

To be fair, he was probably a bit more committed to his studies before, during and after our degrees. He taught himself calculus whereas I couldn't even teach myself to smoke.

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Loaded fine for me.

Thanks for checking. Must be something at my end.

 

I just noticed there is a nice full moon out tonight. Clouds rushing across the sky and the moon as it's very windy today.

 

Anybody think this can affect the markets?

 

The moon, not the wind. :P

 

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I think this next time we go through $1000 will be the last time the price is below it. Below $1000 will look very cheap in a year from now.

Someone else agreeing with what I was saying about the next time through being the last.

 

Gold Price to Stay Above $1,000 This Time Around - Steve Sjuggerud - For The Right Side - Date 04/09/2009

 

 

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Thanks for checking. Must be something at my end.

 

I just noticed there is a nice full moon out tonight. Clouds rushing across the sky and the moon as it's very windy today.

 

Anybody think this can affect the markets?

 

The moon, not the wind. :P

 

I think the wind has more effect. Can make people mad. Just check out the number of times the market falls when it's windy.

 

(not to be taken too seriously :D )

 

 

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stateofjefferson on http://goldismoney.info/forums/showpost.ph...postcount=29159

Two minutes ago Kudlow said on CNBC that , I am paraphrasing here " The gold market is saying that the currency markets are in trouble". This is the second time today that Kudlow was boosting gold. Amazing. Gold is the topic this very moment on CNBC.

 

Edit: CNBC did about 20 minutes on gold and Kudlow finished with "someone is going to have to put some gold or value behind our currency".

 

It would seem that the cat is out of the bag.

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Advert on the front page of my local paper

 

Gold Rush

 

WE WILL BUY YOUR GOLD FOR CASH

"High gold prices have seen a new industry spring up overnight, & the formally taboo subject of selling second hand jewellery has quickly become mainstream.

 

"People truly underestimate how much thier unwanted or broken jewellery is worth, the average sale is over £145.00.

Its very exciting when you tell someone the good news" :lol:

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Advert on the front page of my local paper

 

Gold Rush

 

WE WILL BUY YOUR GOLD FOR CASH

"High gold prices have seen a new industry spring up overnight, & the formally taboo subject of selling second hand jewellery has quickly become mainstream.

 

"People truly underestimate how much thier unwanted or broken jewellery is worth, the average sale is over £145.00.

Its very exciting when you tell someone the good news" :lol:

 

exactly, china advise their people to start buying gold, whilst UKers are being conned/told to sell, this must be Brown's idea surely, with his sell at the bottom & buy at the top strategy. :D

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Advert on the front page of my local paper

 

Gold Rush

 

WE WILL BUY YOUR GOLD FOR CASH

"High gold prices have seen a new industry spring up overnight, & the formally taboo subject of selling second hand jewellery has quickly become mainstream.

 

"People truly underestimate how much thier unwanted or broken jewellery is worth, the average sale is over £145.00.

Its very exciting when you tell someone the good news" :lol:

 

In my local paper too!!!

 

There is some mention that the government are behind these companies....

 

So we brits sell our gold, our government holds it and then the chinese buy it....maybe this is what is being discussed in the G20 - Brown must be proud of raping his own country and its people..Now he'll be selling the family silver to the Chinese and hope that they go easy on us him.

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...There is some mention that the government are behind these companies....

No, just a few guys in the metals and jewellery markets. I was talking to someone that owns one of these companies and it is not getting the response that it hoped for as many people prefer to use a local jeweller or pawn shop.

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No, just a few guys in the metals and jewellery markets. I was talking to someone that owns one of these companies and it is not getting the response that it hoped for as many people prefer to use a local jeweller or pawn shop.

Some may be doing better than others. My folks run a post office and see a steady stream of parcels being shipped of to postalgold and cash4gold etc... any jewellers/pawn shop owners here noticed an increase in gold trade?

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"Gold jewellery for CA$H" adverts are cropping up everywhere. They have full-sized adverts covering the entire backs of double-decker buses in Nottingham. Clearly someone thinks PMs have a bright and shiny future...

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"Gold jewellery for CA$H" adverts are cropping up everywhere. They have full-sized adverts covering the entire backs of double-decker buses in Nottingham. Clearly someone thinks PMs have a bright and shiny future...

More importantly, the psychological frame has changed.

 

Goldrush on soon.....

 

Nick

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Thanks for stopping by cgnao. :)

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In my local paper too!!!

 

There is some mention that the government are behind these companies....

 

So we brits sell our gold, our government holds it and then the chinese buy it....maybe this is what is being discussed in the G20 - Brown must be proud of raping his own country and its people..Now he'll be selling the family silver to the Chinese and hope that they go easy on us him.

 

 

No need for gold confiscation then ?

:unsure:

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