China Forming Plans To Take Away Gold Market And Price Discovery Power From U.S.
By Kenneth Schortgen Jr Finance Examiner
Since the beginning of the year, and perhaps even going back to the end of the 2008 credit crisis, gold and silver markets in both London and the U.S. have seen a massive amount of manipulation by the bullion banks in an effort to protect the dollar and reserve currency at the same time the Federal Reserve began implementing the policies of ZIRP, QE, and direct monetizing of U.S. debt.
This of course has led the spot price of gold in the physical, paper, and futures markets to become depressed so much that several global miners no longer are able to make a profit from excavating and refining the precious metals.
Harvey Organ- By December Whole Thing Going to Collapse
But on Sept. 11, the days of Western manipulation may be quickly coming to a close as China is currently holding a three day Gold Conference in Beijing, with the primary purpose being the denominating of gold contracts in yuan rather than dollars, and creating a metals market that is absent manipulation and capable of wresting control of price discovery from the Comex and other Western banks that need to control prices to protect the crumbling reserve currency.
The China Gold Congress is currently in full flight in Beijing. The three day Congress is China’s biggest gold industry event of the year, drawing in participants from across the Chinese and international gold sectors including central banks, mining companies, bullion banks and refiners.
In an announcement that coincides with the China Gold Congress today, the Shanghai Gold Exchange just announced that it is launching an internationally tradable yuan denominated physical gold contracts to be traded in the free trade zone for the popular retail 1kg gold bar, the Good Delivery 12.5kg (400 oz) bar popular with central banks, and a smaller 100 gram bar contract.
We may soon see global gold hub wars between London and New York on the one hand and the increasingly powerful eastern hubs of Singapore, Shanghai and Beijing on the other. - Goldcore
This sudden shift in policy by the Chinese to control and perhaps dominate the gold market is being taken seriously by London and U.S. gold cartels that have been the primary keepers of price discovery and fixing for decades.
At the same time Shanghai is gaining approval for more bullion banks to expand the capacity of the gold markets in Asia, the U.S. based CME is in negotiations to open their own offices and outlets for gold contracts in Hong Kong which will create a full monetary war between the yuan and the dollar over the power and authority to control gold prices and discovery.
The biggest question on who will ultimately be successful in this economic war comes down to who actually has the physical gold on hand to supply contracts that will no longer be paper ones that are normally rolled over each month, and instead are concrete contracts that will require delivery of physical gold at an agreed upon price.
And according to long time metals analyst Harvey Organ in an interview on Sept. 10 with Greg Hunter of USA Watchdog, the U.S. and London no longer have any gold at all, and this attempt to usurp the Chinese in dominating the metals markets for the future will not only blow up in the CME's face, but will cause the actual price to rebound strongly to its true value of upwards of 100 times greater than what the current spot price is that rules the markets today.
China forming plans to take away gold market and price discovery power from U.S.