GATA chairman Bill Murphy explains that China and Russia know what GATA knows about gold:
February 28, 2012
GATA: The Russians And Chinese Know What We Know And It Is SO Bullish!
There has been a great deal of commotion of late, and over these past few months, about China and their growing influence in the gold market. It is coverage well deserved and very important. It got me thinking it would be a good time to go a bit retro re the GATA story as it revolves around gold, the Chinese, and the Russians … and why it is so important for gold investors to know what they know … as well as what GATA knows.
It is very simple. The Gold Anti-Trust Action Committee was formed in January of 1999 to expose the manipulation of the gold market. At the time we thought it centered around various bullion banks, such as JP Morgan, Chase Bank, Goldman Sachs, etc. It wasn’t too long after that we realized the manipulation was far more vast … that it included our Fed, US Treasury, Exchange Stabilization Fund, and other central banks such as The Bank of England.
After GATA was formed, the price of gold spent a couple of years below $300 an ounce. Oh how people forget the real deal as time goes by. Back then GATA railed against the hedging practices of the likes of AngloGold, Barrick, etc. At the advice of The Gold Cartel bullion banks, or in cooperation with them, they sold their forward gold production years in advance. GATA POUNDED the table about the absurdity of it all … that it was not only sinister, but a fool’s game. We were attacked/mocked by the gold establishment for vilifying the hedging producers and the bullion banks for their role in the gold price suppression scheme.
Long story short…
*AngloGold and Barrick eventually closed out their hedge books, taking something like $8 to $10 billion in LOSSES apiece.
*GATA is still around and thriving, Goldman “Hannibal Lecter” Sachs let its hedging guru, Don McConvey, go as JP Morgan did to its guru, Kevin Crisp. While The Gold Cartel’s initial ringleader, Goldman Sachs, disappeared from the gold rigging scam a few years ago.
*The price of gold rose to $1900+ per ounce, corrected, and is now on its way to $3,000 to $5,000 per ounce … which is the price I jumped up and down about at our Gold Rush 21 Yukon Conference in August of 2005 … a price (in my opinion at the time) that would eventually be needed to clear the market. The price of gold back then was $436 per ounce!
How could GATA get it so right and the bullion banker big shots get it so wrong? Simple again … GATA knew that the supply/demand situation was far more bullish than acknowledged by EVERYONE in the mainstream gold world. We KNEW that a 1500 tonne demand deficit at the time was being met by surreptitious central bank/Gold Cartel selling. We also knew The Gold Cartel could not maintain that sort of central bank gold drain. This was not acknowledged by the gold world establishment, as it would have revealed the gold price suppression scheme.
I could go on and on, so let’s get to the nitty gritty of what ought to be of investment interest to you right now. While the US will not give GATA the time of day (CNBC’s Ron Insana interviewed me in February of 1999. Once CNBC heard what GATA had to say, we have been banned from CNBC US ever since.), the Russians and Chinese have been all over what GATA has overtly laid out, and quietly positioned themselves accordingly as to their accumulation of gold reserves.
This is no braggadocio on GATA’s part. They found out some time ago that the gold price was artificially suppressed. This is what GATA knew so long ago and explained/documented. The Gold Cartel was secretly using up their available central bank gold supply in order to suppress the price. This was UNSUSTAINABLE and was obvious to GATA. We KNEW that The Gold Cartel could not continue to suppress the price, only MANAGE its price on the upside … which is why the price has now risen 12 years in a row. My term, for umpteen years now, has been to call it a “managed retreat.” The Gold Cartel can only play their pitiful games to win battles, on their way to losing The Gold War … as the price goes UP, and UP, and UP, year after year.
The bottom line is the Russians and Chinese know this Gold Cartel is artificially suppressing the price of gold to suit their own agenda. On a bigger picture basis, the gold price is ALWAYS too cheap, year in and year out. For example, it is commonly stated that if the price of gold kept up with the acknowledged US inflation numbers, the price would already be $2500 per ounce. AND, that is without taking into account all the money printing going on in the US and Europe at the moment.
The Chinese and Russians have known for YEARS that gold has been way too cheap and why, which is a main factor in their buying. GATA was first clued in the Russians, who are major gold producers, were paying attention to GATA in 2004…
10:13p ET Sunday, October 3, 2004
Dear Friend of GATA and Gold:
Movements in the price of gold are sometimes “so enigmatic” and central banks and bullion banks are so involved with it that the gold market may be less than free, the deputy chairman of the Bank of Russia says.
The deputy chairman, Oleg V. Mozhaiskov, made the remarks in a speech at a meeting of the London Bullion Market Association in Moscow in June, but the LBMA and other participants in the meeting suppressed it, refusing repeated requests to release a copy.
After months of negotiation, the Bank of Russia last week supplied the Gold Anti-Trust Action Committee with an English translation, which is appended.
In his speech to the LBMA Mozhaiskov cited GATA’s work at length, and while not formally endorsing it, he showed that the Bank of Russia has been following it closely and knows that much more has been going on in the gold market than is widely acknowledged. Likening the central bank to a giraffe, Mozhaiskov quoted a poem well-known in Russia: “The giraffe is tall, and he sees all.”
The central banker acknowledged that the great increase in the use of derivatives and central bank leasing of gold have depressed its price in recent years.
Mozhaiskov also denounced “the blatant lack of discipline” of United States fiscal policy and “the social and economic injustice of a world order that allows the richest country in the world to live in debt, undermining the vital interests of other countries and peoples.”
Despite its use as jewelry, gold is mainly a financial asset, not merely a precious metal, Mozhaiskov said, and international financial circumstances are making gold particularly and hard assets generally ever more desirable for investment.
GATA is grateful to Mozhaiskov and the Bank of Russia for their willingness to address gold market issues openly, and we will encourage study and discussion of this speech.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
Less than a year later GATA was contacted by a key economic advisor to Russia’s President Putin, Andrey Bykov, who said he would like to attend our Gold Rush 21 conference in the Yukon. The moribund price of gold exploded out of nowhere two days following that conference.
Not for nothing, Andrey then came to our Gold Rush 2011 conference at The Savoy Hotel this past early August in London. How GATA further intertwines with the Russians is inferred in the following MIDAS commentary of nearly two years ago…
March 31, 2010 – Gold $1113.30 up $8.80 – Silver $17.52 up 21 cents.
For the first time in 11 years I have not watched one second of CNBC while home in Dallas. Had no time. The first part of the day was spent dealing with GATA matters which I cannot get into at this point in time (don’t bother even asking me). Then, from 10:30 to 2:30 I spent a delightful time with Emilya Khatskevisch, a Russian TV journalist from San Francisco, and Alexander Sasha Burkative, another Russian and an Event Videography guy who was the cameraman (also from San Francisco). Both came to Dallas for Channel 1 TV in Russia, formerly (love this one), The Television Channel for The Soviet Union. It has been in business since the 1950’s and is the equivalent to NBC or CBS here in the States.
The interview is about a documentary Channel 1 is doing on gold and the dollar. It was a very long interview and Emilya asked about 30 questions, which were quite good. She said this was her best interview. I don’t mind mentioning this after being forced to super speed my 5 minute delivery before the CFTC. She also said that “GATA is famous in Russia.” Again, how bizarre … the mainstream financial market press in the US won’t even mention that we exist.
Emilya was very impressed when I showed her a four page story in one of the most respected Russian monthly magazines which featured GATA, with my picture and our GATA painting front and center. It was in 2002. It’s only been 8 years since that big spread and the US financial market press still won’t mention our name. What a joke!
Just so you know that what I am relaying to you is not GATA hype, my good friends Jim Smith and Bill Laggner (both highly successful money managers here in Dallas) were here for the entire interview. We all went out to lunch at Villa O afterwards. It was most enjoyable. I asked Emilya if she would have the producers contact GATA when the show goes live, and, if possible, to sent us a recording of the program.
As far as GATA and the Chinese go, it is laid out in this running MIDAS commentary over the past many years. As you will read, GATA was on the Chinese, as they were on to us, many years ago…
September 4, 2011 – Gold $1884 – Silver $43.25
MIDAS SPECIAL – WikiLeaks/US Embassy In Beijing Price Suppression Cable/China/GATA On The Move In Hong Kong And London
This goes in the You Can’t Make This Up category. First, from my Friday MIDAS commentary:
*There is increasing talk of a gold standard. But so far none of the discussion has focused on whether the central banks still have anywhere near the gold they say they have. GATA has long stated they have less than half the gold the World Gold Council claims they do.
What a fiasco when the investment world learns what GATA believes is surely the case. There is no telling what the price of gold will do as this scenario unfolds. How ironic that the Chinese and Russians have been following GATA, and continue to encourage gold ownership, while the US financial market press ignores us, not even allowing our views to be presented to the American public.
*The bit about the Russians and Chinese is not poppycock. The number two Russian central banker spoke about GATA at an LBMA conference in Russia in 2004…
10:13p ET Sunday, October 3, 2004
And then key economic consultant to Russia’s President Putin, Andrey Bykov, attended our Gold Rush 21 conference in The Yukon in 2005 and our London Gold Rush 2011 in August. Several of us in the GATA camp were part of THREE conference calls years ago with the Chinese Investment Corporation, one of the Chinese sovereign wealth funds.
Never get tired of watching the 2 minute+ trailer of Gold Rush 21 which gives some insight into what Andrey Bykov took back to President Putin and The Russian Central Bank:
THE PRICE OF GOLD EXPLODED IMMEDIATELY FOLLOWING BOTH CONFERENCES!!!
Twenty-four hours later GATA’s Chris Powell sends out the following missive:
FLASH: China knows about gold price suppression, and U.S. knows China knows
Submitted by cpowell on 03:33PM ET Saturday, September 3, 2011. Section:
6:47p ET Saturday, September 3, 2011
Dear Friend of GATA and Gold:
China knows that the U.S. government and its allies in Western Europe strive to suppress the price of gold, and the U.S. government knows that China knows, according to a 2009 cable from the U.S. Embassy in Beijing to the State Department in Washington.
The cable, published in the latest batch of U.S. State Department cables obtained by Wikileaks, summarizes several commentaries in Chinese news media on April 28, 2009. One of those commentaries is attributed to the Chinese newspaper Shijie Xinwenbao (World News Journal), published by the Chinese government’s foreign radio service, China Radio International. The cable’s summary reads:
“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 United States 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 toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the renminbi.”
It’s hard to believe that, two years later, China is still leaving so much of its gold with the Federal Reserve Bank of New York and the Bank of England when even little Venezuela has publicly figured out the gold price suppression component of the Western fractional reserve banking system and is attempting to repatriate its gold from the Bank of England and various Western bullion banks:
It is already a matter of record that China dissembled about its gold reserves for the six years prior to the public recalculation of its gold reserves in April 2009 that prompted the commentary in Shijie Xinwenbao. At that time China announced that its gold reserves were not the 600 tonnes it had been reporting each year for the previous six years but rather 76 percent more, 1,054 tonnes:
ZeroHedge, which seems to have broken the story of the Beijing embassy cable this evening, comments:
“Wondering why gold at $1,850 is cheap, or why gold at double that price will also be cheap, or, frankly, at any price? Because, as the following leaked cable explains, gold is, to China at least, nothing but the opportunity cost of destroying the dollar’s reserve status. Putting that into dollar terms is, therefore, impractical at best and illogical at worst. We have a suspicion that the following cable from the U.S. embassy in China is about to go not viral but very much global, and prompt all those mutual fund managers who are on the golden sidelines to dip a toe in the 24-karat pool.”
The ZeroHedge commentary can be found here:
In addition to fund managers throughout the world, this cable may be of special interest to the gold bears CPM Group Managing Director Jeff Christian, who says he consults with most central banks and that they hardly ever think about gold, and Kitco senior analyst Jon Nadler, who insists that central banks have no interest whatsoever in manipulating the gold price.
In fact, of course, gold remains the secret knowledge of the financial universe, and its price is actually the determinant of every other price and value in the world.
The Beijing embassy cable can be found here:
And, just in case, at GATA’s Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
So much that can be covered here, but first and foremost, GATA’s credibility and proof of our understanding of the real gold market (one not reported on by the mainstream gold world, Planet Wall Street, and the financial media) just took another giant leap forward. We have been all over the Chinese buying gold story for MANY years, having reported them buying secretly via intermediaries from our STALKER source.
It is quite intriguing and represents GATA’s track record of how we have nailed what was really going on in the gold market all these years, while being disparaged by the mainstream gold world and our critics. See for yourself:
April 24, 2009 – Gold $913 up $7 – Silver $12.92 up 12 cents
GATA’s Credibility Soars On China Gold Buying News
GATA’s credibility took another leap forward this morning when China announced it has increased its gold reserves to 1,054 tonnes from 600 tonnes. For years and years and years GATA has claimed that the gold world establishment has failed to account for surreptitious gold lending operations by The Gold Cartel to suppress the price. For there to be greater gold supply hitting the market, there had to be greater demand to satisfy this undisclosed supply. As a result of Frank Veneroso’s brilliant supply/demand work in years past, we mentioned that one of the demand areas, that the likes of a GFMS was not accounting for, was China, and that someday their stealth buying would be reported. Voila…
China gold reserves apparently doubled
HONG KONG (MarketWatch) — China has added to its gold reserves and now holds 1,054 metric tons of the yellow metal, according to a Friday report by the Xinhua News Agency, which cited comment by Hu Xiaolian, head of the State Administration of Foreign Exchange.
Hu said that China’s gold reserves had risen by 454 metric tons since 2003 and that the total was being reported to the International Monetary Fund as per the organization’s rules.
A Dow Jones Newswire report said the figure cited was nearly double China’s reported gold reserves as of the end of last month, but noted that it wasn’t clear which gold reserves Hu was referring to.
She said China’s gold reserves now rank fifth in the world among nations which publicly disclose their holdings.
Analysts said China bullion buying reflects efforts to diversify their nearly $2 trillion stockpile of foreign exchange reserves.
“Chinese officials have been increasingly vocal about their concern on the U.S. dollar and the U.S. bailout policies of late, and have actively been seeking to diversify into other assets, especially commodities,” said Martin Hennecke, an associate director with Tyche Group in
To say that this revelation is a big deal is an understatement … for a number of reasons…
*It is more evidence that various central banks are increasing their gold holdings, in contrast to a number of western banks which have been selling for more than a decade.
*China’s move debunks Planet Wall Street and other western central bankers that gold is a barren asset and not worth owning.
*And it enhances the notion that gold is a valuable reserve which will encourage other central banks to follow China’s lead.
*It surely will spook some of the sheeple central bankers who have foolishly dumped their country’s gold reserves at bargain basement prices … especially at a time when the West is looking at one financial crisis after another and the world’s major currency reserve, the dollar, is looking very suspect. A number of them are unlikely to press for further bullion sales from their countries’ reduced reserves.
*The likelihood of China continuing to build its reserves is extremely high. They were secretly building their gold reserves BEFORE the latest financial crises. If this was the Chinese mindset then, what must it be now? As is, their percentage of gold reserves is still on the very low side.
*Because of what the US is doing with our bailouts and fiscal deficits, the US dollar is surely on a precipice, thus China must be looking to accumulate more gold. Therefore, this is not a sell the news market announcement. It is just the opposite. It is a clarion call to buy physical gold.
*That clarion call will not go unheeded by the sophisticated big money in the world.
*This is a major new headache for The Gold Cartel.
Derrick sends us some retro on China/gold which was brought to your attention years
China’s forex watchdog faces dilemma on expanding gold reserves
From Xinhua News Agency
Monday, December 26, 2005
SHENZHEN, China — To buy or not buy? That’s a question for Chinese foreign exchange authorities. They have been urged to expand gold reserve since the Renminbi appreciation, but the decision is hard to make since the gold prices are rocketing.
Some economists have been appealing to the State Administration of Foreign Exchange to expand China’s gold reserve after the Renminbi appreciation in a bid to reduce the country’s reliance on the greenback….
GATA has been all over the Chinese gold buying case and we can account for it in our understanding of the true supply/demand picture. GFMS and the World Gold Council CANNOT!
And then to shed light on the MIDAS analysis and what lies ahead…
I reproduce the following from a Financial Times article this morning declaring that China’s gold reserves have officially been revised to 1,054 tons from 600. You have long held the view that China was buying gold through intermediaries and would eventually disclose part or all of these activities. It is the end quote I append that caught my eye:
“Hou Huimin, vice general secretary of the China Gold Association, said China should build its reserves to 5,000 tonnes.
“It’s not a matter of a few hundred, or 1,000 tonnes. China should hold more because of its new international status, and because of the financial crisis,” he said. “The financial crisis means the US dollar’s value is changing fast, and it may retreat from being the international reserve currency. If that happens, whoever holds gold will be at an advantage.” (emphasis added)
Thought you might be interested.
All my best to you and your health, Brad
And here’s a big tip o’ the hat to our STALKER source who nailed this one, beginning back in 2003, which just happens to be the year the Chinese now admit they started buying.
Doing a Café search, I have yet to find the initial presentation to The Café … but the bottom line is our source went to Phoenix for a meeting with six others in 2003. Our source was there to act as a gold buyer in the future. The person who held the meeting spoke FROM BEHIND A SCREEN, as he did not want to disclose his identity. While speaking perfect English, our source thought at the time he might be Chinese and did not wish that to be known.
Our STALKER source called today and I could almost see the smile on his face through the phone. He reminded me of another tip, i.e. it was Chinese doing the buying, and he reported it was going through Australian banks, which have a longstanding relationship with the Chinese.
It is with great pleasure to bring MIDAS commentary to you re the Chinese/STALKER from more than half a decade ago…
September 10, 2003 – Gold $379.70 down $1.80 – Silver $5.22 unchanged
…Could any market trade more predictably than gold has the past month? Every time gold rallies sharply and early in a given day, it is capped by The Gold Cartel, sold off later in the trading session, brought down early that evening in overseas trading, and then is pressured all the next day by the same cabal. Over and over we see the same trading pattern.
You see it, I see it, and SO MUST the $4.6 billion buyer, which MIDAS characterized in general as being around some $40 ago. It seems to me this “gold buying group” is playing with The Gold Cartel. They know the cabal’s drill as well as we do and probably devised a trading plan to take them on, not fight them too hard on given days, and then overpower them.
This “gold buying group” must know what GATA knows, in that the cabal has a serious vulnerability, or Achilles Heel, when it comes to the physical gold market:…
September 11, 2003 – Gold $379.30 down 40 cents – Silver $5.30 up cents
Dramatic Gold Day / Silver On The Move / Both Have Fireworks Potential
…Today’s action was very supportive of MIDAS’ notion there is a Stalker (“gold buying group”) out there taking on the corrupt Gold Cartel. They waited for Goldman Sachs to strike, then attacked, sending gold $7 off its lows. Dramatic it was. This is a big deal. Other traders will see how easily gold came back after filling the gap and will encourage them to get long, especially since the gap was filled. The huge open interest also suggests a significant move is coming. Gold’s startling comeback suggests that move is going to be one which takes the price MUCH higher….
September 19, 2003 – Gold $381.10 up $4.80 – Silver $5.25 up 2 cents
The Stalker Strikes With Another Huge Gold Buy Order!
…Gold came in stronger than expected on the Comex opening, which is almost always a very constructive development. It left a $1 gap and quickly shot up all morning, topping $383 at one point. Then the requisite Gold Cartel $6 price-capping rule went into play. That was all she wrote. The cabal regrouped and held gold in check the rest of the trading session and then did their requisite slam, knocking gold down a buck ON THE BELL.
These no-good low-lifes are pitiful. Ah for the day when we can get our stretchers out, pick them off the mat, and then dump them in the sewer!
The big news is for Café members only. I received a call from London about The Stalker and learned a bit more about this “gold buying group.” Two goodies for you:
*In addition to the $4.6 billion order, The Stalker is buying well in excess of another billion dollars worth of bullion and gold coins. The MIDAS analysis over these past months of huge new buying interests entering the gold arena looks better by the day.
*The orders are emanating out of New Zealand and Australia. My source believes it is Asian money and most likely CHINESE!
This is wonderful news as it would mean the Asian (Chinese) gold buy program is competing with Indian, Turk and Arab buying. Put them all together and it is easy to comprehend why The Gold Cartel has not been able to flush out the massively long specs.
The Eastern buyers are always there on dips competing against one another for a diminishing supply of gold.
It also explains why gold has been moving up in price with a corresponding, but lagging, move in the dollar. Gold is leading the way and doing so for the reason John Brimelow and I have articulated for so long. The key to the gold price is the surging physical gold market taking on the corrupt and devious Gold Cartel…
December 23, 2003 – Gold $410.65 up 55 cents – Silver $5.71 up 2 cents
A STALKER Of A Gold/Silver Tale For Christmas Time
…As Café members have been made aware, the Eastern gold buyers have additional competition due to the enormous physical market buying by THE STALKER (“gold buying group”). Without getting into many details, I want to stress THE STALKER is real. My source’s good friend has attended a meeting with this “gold buying group,” or his agent. I say “or” because THE STALKER is very secretive and does not want to be known publicly, even to the sellers from whom he is buying.
Both my source and I strongly believe the gold buying is of Chinese origin…
January 5, 2004 – Gold $423.80 up $8.60 – Silver $6.19 up 27 cents
Gold ($423.80) And Silver ($6.19) SOAR!
…*THE STALKER input has been incredible. Every time I get word this “gold buying group” is in the market, gold moves higher. Just as I was writing this, I received a phone call from “Mike,” my STALKER source. He tells me THE STALKER was in the market today and they are going after $1.4 to $1.6 billion worth of gold in the near term…
January 15, 2004 – Gold $408.30 down $13.10 – Silver $6.19 down 21 cents
Ouch! Gold Cartel Wins A Battle
…Good news! Just got off the phone with my STALKER source. There was an unscheduled phone conference this afternoon with THE STALKER’S US buyers. They have a NEW order for $800 million to $1.2 billion to be completed between now and March. 72 tonnes of new gold buying is nothing to sniff at! The orders are still coming out of Australia and my source continues to believe they are for mainland China…
January 28, 2004 – Gold $414.60 up $4.90 – Silver $6.60 up 7 cents
Silver Closes At Six-Year High/Gold Charges Up $5/Gold Share Massacre Orchestrated
..In my various presentations and public commentary at the Vancouver conference I stressed the importance of what was going on in the physical gold/silver market and laid out what has been presented to Café members, including John Brimelow’s unique and extremely valuable work. There was no one else at the conference doing so. While most conference presenters stressed the weak dollar as the most important gold factor, I stressed it was the surging physical market.
In that regard, I learned this morning THE STALKER (probably China) just completed the last bit of its $6.8 billion order. NOW, THE STALKER is working on its additional 800 million to $1.2 billion dollar gold order (brought to your attention recently). I might know more on this on Friday.
To give you some idea of how significant this is, Norway just reported they sold 16 tonnes of gold in January (see below) and plan to dump another 17 tonnes of bullion, which will clean them out. The Gold Cartel and friends jump up and down about more central banks selling their gold and make a big deal how negative it is. What The Gold Cartel fails to tell the press and their clients is who is BUYING gold and to what extent. Can they all be so uninformed?…
February 24, 2004 – Gold $403.90 up $5.70 – Silver $6.59 up 13 cents
Silver and Gold Pop Very Nicely / $6 Rule AGAIN
…Some input from a bullion/coin dealer who has been in the business for 40 years. He has not seen the physical gold market this tight in two decades. The physical market is in a bit of a disconnect with the price-rigged Comex. Silver is also extremely tight according to my source and only trades in size at a PREMIUM. You cannot buy a decent amount of physical silver without paying up. Wait until next month!
Some STALKER feedback. We have confirmed the buyer is from the Far East, in all probability Chinese, and they still have $1.5 billion of gold to buy. We also know why they are buying. This is a big picture trade, not a short-term speculation. The gold they are accumulating is going into deep storage and not coming back into the market on rallies. The reason is these “Chinese” fear a complete debacle in fiat currencies in the next couple of years…
That’s enough for now. You get the picture. The GATA camp was right on the money about Chinese gold buying while there was nary a peep about it from the mainstream gold world, or from the big shot bullion dealers on Planet Wall Street.
Going to soak the latest China news re GATA for all it is worth, have some fun with it, and bring more of what we said two years ago to the front and center:
September 3, 2009 – Gold $996 up $19 – Silver $16.26 up 91 cents
Gold, Silver SOAR/Sudden Talk Of The Town/China, GATA And Gold
Ask and ye shall receive! Both gold and silver gapped up higher and then made a run for the upside as the day wore on.
What a difference a day makes. On Tuesday gold was off most everyone’s radar screens, including a number of former Café members. Despite going up NINE years in a row, tedium had set in on gold’s inability to perform up to expectations based on financial events … courtesy of you know who. The general public and pundits lost interest in the gold story. It’s fascinating, as mentioned here for months, how gold makes its boldest moves higher when investors aren’t paying attention.
Yet by yesterday afternoon gold was suddenly the talk of the town, lighting up the CNBC and Bloomberg scoreboards … and there was tons more talk all day today. Bulls came out of the woodwork and one clueless Muppet after another offered an opinion why gold was the place to be. PRICE ACTION MAKES MARKET COMMENTARY. Most of the opinions were one day thought-outs … coming up with the same reasons why gold is so bullish which have been in place all summer. And naturally, not ONE mentioned the real reason gold is on the move: The Gold Cartel is gradually losing control of their rig.
However, one solid reason given for gold’s lurch to the upside is CHINESE buying. Those pundits citing the Chinese as formidable buyers are right on the money…
In Currencies: The early chatter was all about the recent moves in metal prices (see commodity section below), particularly gold. Speculation mounted that perhaps pressure on the Chinese state-controlled organizations to dump dollars in favor of more concrete assets like gold were swirling among dealing desks. Thus the USD’s tone was subdued as gold hit fresh 3-month highs towards $990/oz. The renewed chatter of Chinese reserve diversification will add to the dollar supply and also reinforce the gold tone.
In commodities: Dealer chatter circulating that recent move in metals might be attributed to Chinese Sovereign Wealth Fund diversification (complemented by selling USD) . There were numerous comments from Chinese officials made in Q4 2008 on this topic. Back on Dec 16th the Ministry of Industry & Information commented that China sought to increase reserves of strategic materials. Back on Nov 18th China’s PBoC was considering raising its gold reserve by 4K tons and the prior day (Nov 13th) the HK Standard reported that China might seek to buy gold in a move to diversify its currency reserves and the article added that China currently holds about 600 tons of gold and could increase this amount to as much as 4K tons.
…BUYING THE FARM
Chinese sovereign wealth fund dumping dollars for strategic investments like gold
Reports suggest that China’s main sovereign wealth fund and other state entities are under pressure to invest in strategic Western assets as the country tries to offload its dollars for firmer-based wealth including gold and oil.
Author: Lawrence Williams
Posted: Thursday , 03 Sep 2009
Several reports are coming out of China that there is pressure on state-controlled organisations – notably the country’s main sovereign wealth fund, China Investment Corporation (CIC) to rapidly build investment in non-Chinese enterprises. While the CIC itself, with apparent access to some $300 billion in funds – and the possibility of more from the government – may be concentrating on hedge funds and other investment entities, there is another sector for Chinese state-owned companies looking at major investment in commodities. Indeed with the funds available as China seems to be dumping its US dollars in favour of more concrete assets, virtually no minerals sector is safe from Chinese participation.
Veteran Café members know that MIDAS has been jumping up and down about China since 2003 when their buying commenced and especially as of last April when they announced an increase in their gold reserves of 460 tonnes. You also know that GATA has had THREE conference calls with the Chinese Investment Corporation since April of 2008. While the mainstream gold world and US financial market press won’t give GATA the time of day, The Chinese and Russians (Key economic consultant to President Putin, Andrey Bykov, and the Russian Central Bank) have gobbled up our stuff. Thus, they know what the gold market is all about and they know where the price is going and WHY! But Planet Wall Street? … out to lunch.
In addition, over the past two weeks I heard from TWO reliable sources the Chinese intend to buy MANY hundreds of tonnes of gold in the years ahead. So all this Chinese gold smoke is for real. There is a fire behind the smokescreens and all the chatter about China and gold is for good reason.
Gold is the talk of the town in Hong Kong too. From a fellow Café member in Hong Kong last night…
In the Hong Kong Chinese newspapers and in the South China Morning Post, there are articles reporting that a new storage facility for gold is now open at Chek Lap Kok, at Hong Kong’s airport. According to these articles, the Hong Kong government’s gold bars stored in London will be shifted to Hong Kong’s new storage space at the airport by the end of this year. (One wonders why it should take so long to shift the gold)
The Ming Pao Newspaper, which is in Chinese, reports that the the Hong Kong officials responsible for the facility are discussing ways of cooperating with the Shanghai Gold Exchange. Because of the foreign exchange rules and restrictions in China, gold can not be as freely moved in and out of China as in Hong Kong. Therefore, Hong Kong may act as one facility for the delivery and storage of gold bars for the Shanghai Gold Exchange.
Usually I send you articles for the Standard but there in no article on this story in that journal. I do not have a subscription to the SCMP so I can not send you the full story. However, below is the link to the SCMP article that is in English.
Four days later I sent the following MIDAS commentary to all the financial media I could think of (not one responded):
Oh well, GATA is used to being ignored and abused … part of the territory. But, perhaps that is all about to change, thanks to the efforts of Chris P. After the Cambridge House investment conference in Toronto on September 14 and 15, he is off speak at the largest investment conference in Asia, one hosted by actor George Clooney. Then, it will be London in which he is the featured speaker at the Pi Capital conference … sandwiched between featured speakers former US President Jimmy Carter and the renowned George Soros. GO CP!…
Is GATA suddenly becoming almost respectable?
Submitted by cpowell on 09:51AM ET Sunday, September 4, 2011. Section:
1:02p ET Sunday, September 4, 2011
Dear Friend of GATA and Gold:
Thanks to a friend met in London just after GATA’s Gold Rush 2011 conference there last month, your secretary/treasurer has been invited to affect some respectability and speak at a couple of financial conferences well outside the usual precious metals circuit.
The first is the CLSA Investor Forum in Hong Kong from September 19-23, said to be the largest investment conference in Asia. Host of this year’s conference is to be the actor and human rights advocate George Clooney:
The conference is open only to CLSA clients.
Then on October 10 your secretary/treasurer has been invited to address the weekly Pi Capital conference, which, the previous week, will be hearing from former President Jimmy Carter and, a couple of weeks later, from fund manager George Soros:
Some current or present government officials with responsibility for the British end of the gold price suppression scheme may be in the audience, so it could be interesting. But this too is a members-only event.
That GATA suddenly should be welcome, if only tentatively, in such circles may be construed as evidence that the gold price suppression scheme is beginning to escape derision as mere “conspiracy theory” and starting to seem at least plausible, probable, or even fully documented to people in a position to act on the knowledge.
In any case GATA has come a long way since its incorporation 12 years ago. If you’re encouraged by our progress and are inclined to help sustain our work, please consider making a donation:
We promise to try to keep making trouble with it. Remember that the World Gold Council, which presumes to speak for both the gold mining industry and gold investors, is said to have an annual budget of more than $60 million, raised from assessment against the mining companies that are its members, and most of that just goes for hanging out with beautiful young women modeling expensive jewelry. (Somebody’s got to do it, we suppose.) But it’s not merely envious to note that this does little for the cause of establishing free markets in the monetary metals, even as GATA, having no regular income, has no annual budget. We sustain ourselves on what our friends can provide irregularly.
On the other hand, maybe the gold price suppression scheme will blow up in advance of the Hong Kong and London conferences and we can move on to trying to prove something else — maybe flying saucers or Bigfoot. Maybe that would get us into The Wall Street Journal or The New York Times at last.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
As you can surmise from all that discourse, the Russians and Chinese have known what GATA knows for some time and have acted accordingly … and did so very secretly for a number of years. As the reasons to own gold continue to mount, there is no reason to believe their gold buying will cease anytime soon, especially as the Chinese in particular encourage their citizens to purchase gold, and various exchanges have precious metals exchanges have been popping up all over the place in Asia.
You might want to keep all of this in mind when the price of gold sells off, and one gold pundit commentator after another predicts the demise of the gold bull market, and that it is a bubble popping (even though the average US citizen can’t even spell gold yet). While these pundits are negative, the Chinese and the Russians are saying, “Thank you very much,” on the dips and buying.
It just might be my long held $3,000 to $5,000 price prediction might be too conservative.
Gold Anti-Trust Action Committee
GATA is not only a think tank group that talks the talk, we have been WALKING the WALK for more than a decade. Besides speaking at various conferences all over the world, we have held four of own international conferences in an effort to get the truth out there to the investing public about the gold and silver markets … to counter the heinous activities of The Gold Cartel.
The four international GATA conferences:
*The GATA African Gold Summit in Durban, South Africa on May 10, 2001, was attended by 5 sub-Saharan African nations, the South African Reserve Bank, leading SA gold producers, the South African unions, etc., – an event that was featured on SABC television.
*On August 8th and 9th 2005, GATA hosted Gold Rush 21 in Dawson City, Canada, a historic conference held in the Yukon to expose the manipulation of the gold market. One hundred delegates attended from 14 countries, including Andrey Bykov, an economic consultant to Russian President Vladimir Putin.
*Then, on April 18, 2008 it was The GATA Goes To Washington conference in Arlington, Virginia. 180 attendees came from 17 countries for the gathering. The conference showcased GATA’s FOIA efforts to learn the truth about US gold reserves from the Fed and US Treasury … which led to a lawsuit against the Federal Reserve System in The United States District Court For The District of Columbia.
*Finally, in August of 2011 GATA hosted an international precious metals conference at The Savoy Hotel in London to expose the manipulation of the price of gold and silver. Four hundred people attended from 38 countries. Many of the attendees said it was the “finest conference” they ever attended.
GATA intends to win the day in our efforts to expose the manipulation of the gold and silver markets. We have been effective so far thanks to the generous contributions of so many. Nothing has changed in that regard. CP and I intend to make the lives of the honchos of The Gold Cartel as miserable as possible. We need your financial support to make that happen.
Most importantly, for you the reader, as the surreptitious activities of the gold and silver markets are exposed, the prices of gold and silver will go bonkers. AND, the gold/silver shares will go ballistic too. If I might say, this is one you can take to the bank: TEN BAGGERS in the decimated gold/silver exploration/junior share sector will be commonplace. The timing of this coming wealth bonanza has been very tricky and overdue. BUT, it is coming … and is the reason WHY, you:
GATA BE IN IT TO WIN IT!