( Note: We realize that many links on this post are incomplete or broken on these posts.....but thats how they came from the source...We apologize for the inconvenience! Dinar Recaps)
hunter35] DiddyKong Are you open to questions tonight?
[DiddyKong] There was a comment or recaps by KevinD53 which is absolutely excellent. It showed me that I needed to elaborate more on the China and gold discussion. Kevin, if you are in this room or see this message on recaps, please join into the convo. Your comment is some good stuff!
[DiddyKong] hunter35 I will be after I address Kevin's comment
[DiddyKong] This is what Kevin said everyone: According to the World Gold Council, China is only the fifth largest holder of Gold, well behind Italy, France, Germany and the US in that order.
They hold 1/8 the amount the US does, with the remaining three combined holding roughly the same amount as the US. BTW, the US holdings of a little over 8,000 tons of gold is a little over a quarter of the total world wide holdings.
[DiddyKong] That leaves us to question, how could China possibly control the gold price if it doesn't hold so much gold.
[DiddyKong] Let's start with this article which I am sure is or had derived its information to what Kevin is refering to: Top 10 nations stockpiling gold - http://www.usatoday.com/
[DiddyKong] " 5. China The world's second-largest economy holds 1,054.1 tonnes of gold, which represents only 1.1% of its reserves. However, this underestimates China's true holdings. The People's Bank of China has not formally disclosed any changes to its gold holdings in years, and it's widely believed that the central bank is purchasing gold to diversify its reserve holdings."
[DiddyKong] The keyword here is "underestimates", why?.... I will elaborate.
[DiddyKong] China spurns gold, adding to price woes (Sept 28, 2014) - http://www.mining.com/
[DiddyKong] "The country's gold reserves are officially put at 1,054 tonnes — a number officials haven't updated since 2009."
[DiddyKong] Since 2009 mind you lol!
[DiddyKong] lets look at the China gold plan according to Song Xin, General Manager of the China National Gold Group Corporation, Party Secretary and President of the China Gold Association
[DiddyKong] (Song Xin) is the name lol
[DiddyKong] Gold Will Support Renminbi As It Moves To Join World (May 6, 2014) - http://www.mineweb.com/
[DiddyKong] "For China, the strategic mission of gold lies in the support of RMB internationalization, and so let China become a world economic power and make sure that the "China Dream" is realized. It's both a very 'honest' asset and forms the very material basis for modern fiat currencies"
[DiddyKong] And there is more from that same website, "China should aim for 8,500t gold reserve - China Gold president"
[DiddyKong] "China should accumulate 8,500 tonnes in official gold reserves, more than the US, according to Song Xin, President of the China Gold Association, General Manager of the China National Gold Group Corporation and Party Secretary. He wrote this in an opinion editorial published on Sina Finance July 30, 2014."
[DiddyKong] " Gold is moneypar excellence in all circumstances and will help support the renminbi to become an international currency as "gold forms the very material basis for modern fiat currencies", Song notes. In the short term the Chinese will not back the renminbi with gold (establish a fixed renminbi price for gold), but support the renminbi with an appropriate amount of gold in reserve to allot credibility and manage its value."
[DiddyKong] The question then becomes, if China is not stockpiling gold in its reserves, then how can it "instantly" (in a sense) acquire more gold in its reserves than the U.S....
[DiddyKong] this is how...
[DiddyKong] "China Expected To Announce It Has More Than Doubled Its Gold Reserves", Shanghai Daily - http://www.zerohedge.com
[DiddyKong] "The topic of China's below the radar accumulation of gold is nothing new: first revealed here in September 2011 as part of a Wikileaks intercept, watchers of Chinese gold imports have been stunned by the ravenous pace with which Chinese customers have been gobbling up both domestic and foreign gold production month after month."
[DiddyKong] "One needs merely to glance at the net imports of gold just through Hong Kong to get a sense of just how much gold has flowed into the country which has now surpassed India as the largest buyer of gold."
[DiddyKong] Bum bum bum....... HONG KONG! Does everyone see that connection with running gold through Hong Kong with the protest that are happening today?!
[DiddyKong] The people of China (Asia to be more general) understand the importance and value of gold for a stable economy. And I have one more item to post...
[DiddyKong] China allows gold imports via Beijing, sources say, amid reserves buying talk - http://www.reuters.com/
[DiddyKong] "China has begun allowing gold imports through its capital Beijing, sources familiar with the matter said, in a move that would help keep purchases by the world's top bullion buyer discreet at a time when it might be boosting official reserves."
[DiddyKong] Key word is here, "discreet".
[DiddyKong] What do we know of bullion dealers? They have vaults with vast amount of space for storing gold. How much gold do they have? Who knows, but if and when China chooses to, they can purchase that gold from its dealers and add it to reserves. DING DING DING
[DiddyKong] So you will not see China importing gold and adding it to its reserves when the gold is already sitting there HAHAHAHA
[DiddyKong] Last point from the same article, "rumours on the People's Bank of China's (PBOC) gold reserves range from 3,000 tonnes to 5,000 tonnes."
[DiddyKong] Just follow the money, real money. So just follow the movement of gold. Not just what government officials are doing, else, you miss what is going on behind the curtains on the activities of a nations businesses and its people.
[DiddyKong] And that brings us back to why it is important for the bills to be passed as laws in the U.S. to remove taxes from gold and silver purchases... in hopes that people safeguard there wealth AND a shift towards legalizing the use of gold and silver as tender
[DiddyKong] Let's get with it America
[DiddyKong] Thats all I have. Let's open the floor for questions and comments.
[hunter35] DiddyKong China does not want the world to know how much gold they really have. Is this the payback from WWII
[DiddyKong] hunter35 no. And that is another great question. I will address it.
[Betsy Ross] DiddyKong Do you remember Jester saying that the US no longer has any more gold not too long ago?
[Betsy Ross] DiddyKong I brought that up because it conflicts with what you posted above.
[lulu] Diddy kong I would like to see the proof that America has 8000 tons of gold that belong to them when they won't even show Germany their gold that they are supposedly holding for them
[DiddyKong] lulu exactly. If you choose to believe that China does not have that much gold, then you must also believe that the US holds some 8,000+ tonnes of gold lol