CHINA 10,000 TONS OF GOLD RESERVE? Could Have Been Done With Ease
(by Chris Hamilton)
Since August ’11 to August of ’14, China has decreased its holdings of US Treasury debt by <-$9> Billion (according to the most recent TIC data)…while continuing to run record trade surpluses with the US. This means China will have (by year-end 2014) taken in $951 Billion in shiny, new, digital dollars and simultaneously sold or rolled off $9 Billion in US Treasury holdings…so China will have had to find a home for $960 Billion new dollars.
From ’00 to ’11, China had (on average) recycled 50% of its trade surplus dollar reserves into Treasury’s. However, as noted above, China has been a net seller since August ’11…why is this date important? It was the month after the debt ceiling fiasco…and the date when China’s purported gold purchase binge began. I don’t think these happenings are a coincidence.
Since we know China didn’t buy Treasury’s over this period, perhaps we should speculate what those new dollars would do if focused on gold purchases?!? If China rotated the 50% of surplus dollars it had been utilizing to buy Treasury’s and instead bought Gold…at an average of say $1500 an ounce since Aug ’11…that would buy China exactly 10,000*** tons of gold by year-end 2014. Hmmm…Implications abound.
( ***Math check…$960,000,000,000 * 0.50% = $480,000,000,000 / $1500 per oz. gold = 320,000,000 million oz. / 32,000 oz. per ton = 10,000 tons of Gold.)
Of course I can’t prove that China did purchase any amount of gold. The Chinese authorities haven’t made any updates since 2009 when they last made public a 600 ton increase (to their then official holdings of 454 tons) to the current official Chinese gold reserve of 1054.1 tons. What I can say is Russia, which likewise has a large dollar trade surplus and likewise to China has been reducing its Treasury exposure since August of 2011…has been busily and openly adding to their gold reserves, now up to 1153.3 tons. Then again, I (nor the US government?) can’t prove the US truly has 8133.5 tons. Or the Germans 3384.2 tons or Italians 2451.8 tons. Still waiting on those open and transparent audits.
All I can say is the above math regarding China’s dollar hoard would nicely support what is visible in the chart below and also support those that claim Chinese gold buying and gold reserves are far larger than advertised.
AND — A quick reminder of who did buy US Treasury debt from August of ’11 til now…sort of a who’s who of banking and digital dollars…noticeably missing are those who have actual dollar reserves in need of recycling!!!
When even a liberal arts major can do the math…this Ponzi scheme must be wearing pretty thin!!!
As a follow up – I was asked if the large Treasury holdings increase in Belgium could represent Chinese purchasing? Here’s my two cents:
No way to really know – but China’s usual outlets for secondary Treasury purchases were historically through Hong Kong or the UK and potentially also via Canada…I didn’t get into this in the article but it was the UK that from June to July of 2011 dumped $208 B in Treasury’s and by October of ’11 had dumped $240 B of the UK’s original $347 B (70% reduction in holdings). Canada likewise dumped $49 B (52%) from June to July of ‘11. The UK now has recouped some to $170 B but still only half of what it owned in June of ’11…Canada likewise has recovered some to $65 B. HK has been steady and slightly growing the whole while. China’s official holdings peaked in July of ’11 @ $1315 B and suddenly also declined to $1150 B by year end 2011.
It’s a pretty safe bet this was China or its agents selling what amounted to $435 B or 35% of China’s official Treasury holdings…and it was Belgium who held $34 B in June of ’11 that suddenly began its moonshot to its current holding of $360 B…an addition of $330 B. However, many also want to attribute Belgium’s rise to Russia whose Treasury holdings peaked in 2010 @ $176 B in Treasury’s and have fallen to their current holding of $118 B ($58 B reduction…or a 33% reduction).
Was there a connection between the $435 B sold between China / Canada / UK and the $324 B subsequently purchased in Belgium? Seems a fair bet. But even more importantly, that would only represent a repositioning of China’s Treasury holdings and would still indicate China has been nothing but a net seller since ’11 (the other option is China actually did sell and has an additional $400+ billion on top of the $960 B in trade surplus all in need of “assets”). The premise that all those dollars in trade surplus from ’11 till now need go somewhere still seems valid.
(graph courtesy of Money Map Press)
This article was written by Chris Hamilton. If you haven’t read his article,“Fraud By Another Name Is Still A Fraud” , I highly recommend it. You can also find Chris Hamilton’s work at CharlesBiderman.com.
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Another great article! Thanks a lot!
As we all know, China wants more power in the IMF.
When was that meeting in 2015 Ehen these things will be reconsiderd?
I do believe around that time China will announce and update their official gold reserves to the world.
I know when China releases their official gold holdings to the world it’ll send shock waves throughout the system and our degenerate media will do everything in it’s power to downplay this event
Great article Steve. China also bought other hard assets like copper, silver, and especially oil. Lots of oil to fill their strategic reserves and at a bargain price……… Don’t be surprised to see Russia announce 6000-8000 tons themselves……….. The IMF will have nothing to say about it when this comes down. We will be playing by the Brics rules then. The west is history.
China has 15,000 tons plus….and Russia 20,000 tons. There will be a big middle finger to the petrodollar sooner than later.
Frank, I agree. I was just being conservative…… Like saying gold will go to $3000 but knowing eventually it will go near infinity as paper implodes……. People think you’re crazy to mention 4+ digits.
I believe there ar e 64’000 ozs in a ton of gold. not 32,000 (above). Gives several other of the numbers above a Lot less credibility.
But hey , all postulations at this point anyway…
32,000 oz is correct. Not 64,000.
http://www.asknumbers.com/tonnes-to-ounces.aspx
Nope. From Answers.com: Gold is measured in Troy ounces and 1 Troy ounce equals 1.0971428571 ounces. 1 metric tonne = 32,150.746 Troy ounces 1 long ton of 2240 lb (UK) = 32,666.667 Troy ounces 1 short ton of 2000lb (US) = 29,166.667 Troy ounces
Here is a handy metric converter that I found after going through the same exercise you did to find an accurate calculation: http://www.copleys.com/measures/
This one is good also.
http://www.convert-me.com/en/convert/weight/
‘Metric tonne’ is a tautology since ‘tonne’ is a metric unit of measure.
Funny you would post a comment like this rather than type something like…”how many ounces in a ton” into any search engine…but please, type it in and your welcome to talk about loss of credibility after that.
And by the way, a tonne is not a ton. They are two different things. Be careful.
Rusty,
Correct… its either Metric Tons or Tonnes. However, when writing a title, simplicity is the best.
steve
FYI, you can do all conversions in google: 1 metric tons in troy ounces (or vice versa, of course)
Folks talk about China not disclosing their Gold holdings like they’re breaking the rules, playing dirty pool or they’re just horrible for not telling, how unfair. Remember the U.S. hasn’t exactly been transparent about it’s holdings. Telling Germany it will take 7 years to get their Gold back, and showing them a altogether different lot once they were allowed to inspect some of ‘their’ Gold, doesn’t promote any confidence in it really being there. Never mind 8,000 tons. I believe it’s gone, if not then why not allow an audit ? Hell, show it off, let FOX Views in with cameras and Hannity in white gloves attempting to pick up a bar. Good T.V. Good P.R. Might settle some nerves. Nope. It’s gone, along with confidence in our monetary system. That flew the coop with the Republican orchestrated shutdown.
Exactly. Do like Great Britain did: march somebody like Her Majesty through and take lots of pictures against the backdrop of all the shiny gold bars for the newsmedia.
The ‘shutdown’ was a failure in FISCAL policy. Confidence in the MONETARY system has been destroyed by the federal reserve.
I agree with you on the gold. Probably close to zilch left that’s not encumbered in some half-baked leasing arrangement.
You actually watch Fox news or MSM expecting any shred of truth?
You don’t need to know anything but the fact Germany requested its Gold and the US still has not handed it over. Truly a remarkable Fact that all lies no matter how bold and confidently presented can overcome. So know, the revealed truth, that there is no gold, is simply a matter of time.
How is that? To a man of reason, it speaks volumes without saying a word. To a liar, there must be some elaborate reason spread forth to explain such simple things to limit any further thought. Naïve and simpleton to the core.
So, knowing the circumstances are in fact such as this, it is simply a matter of time of its eventual exposure to the masses. Do you think TPTB do not know this? All that you see and hear is merely a diversion to allow for them to prepare “salvation” for themselves. Should we not prepare too? And when the walls crumble, there will be no excuses for anyone of not knowing. Those 5 unwise virgins didn’t know because they where deceived, mesmerized by the little sparkly things and the uniforms, the flesh, the baseballs and footballs, the malls and of course Hollywood.
There will be the have and the have not’s. But truly, what can any person take with them beyond the grave? Those who know His Majesty, Jesus Christ, will possess the true riches of His Kingdom. And that has nothing to do with a piece of metal that has no being. But do you think Jesus desires for His Children to be ignorant of what the enemy is doing?
They are preparing to destroy the current world order. Like a Phoenix. I mean, most people can understand if you want a new world order, you have to end an old one. Duh!
They needed a Destroyer. It’s all by design. If you see a construction sight that is being demolished so they can build a new building in the same spot, you do not marvel at such things? So why do you marvel at Obama? He is merely fulfilling his purpose, like a bull dozer.. And do you think Jesus in unaware?
Really, you must spend some more time considering what is going on.
Peace and Good Will.
“…the idea of creative destruction or annihilation…implies not only that capitalism destroys and reconfigures previous economic orders, but also that it must ceaselessly devalue existing wealth (whether through war, dereliction, or regular and periodic economic crises) in order to clear the ground for the creation of new wealth….”
Wikipedia: Creative destruction
Capitalism never works if there’s no Rule of Law
Imo, china already has 10k+ tons if not 15 or 20k! They probably just want to keep socking away 2k tons a year for as long as they can. In a few more years they will be able to say they have 3-4x more Au than Uncle Sam. They’ll laugh their asses off and ask whoever is president (hillary, rand, jeb, etc) to get on their knees and toss a raw Mandarin salad. But hey, on a lighter note, Germany might get a couple hundred tons of “their” gold back by 2030. Lmao.
I dont often buy silver, but when its 17, I buy and hold the sh*t out of it. Stay thirsty my friends.
Kudos for doing your homework! I’m glad someone had the time to sit down and cypher all the numbers. Trying to get a grip on the Chinese moving their checkers around on the board is baffling.
My comment is that the Intelligence Community should fear the Swiss Gold Initiative results at the end of November. If the Swiss break the dam and require its government to revert to hard money (as it should) it will give the BRICS the door opening it needs to move ahead with a market basket approach to currency including gold. The resulting sucking sound would be the dollar collapsing to the floor.
Off topic but, here’s what I was talking about regarding the previous story (copper). Any guesses who the mystery buyer is ( GS?)………. [ http://online.wsj.com/articles/single-firm-holds-more-than-50-of-copper-in-lme-warehouses-1414361984?mod=WSJ_hps_MIDDLE_Video_Third ]
BRICS Treasury Securities August 2014
Brazil …………………$261.7Bn
Russia………………..$118.1Bn
India…………………..$80.4Bn
China…………………$1,269.7Bn
Hong Kong…………$160.0 Bn
South Africa……….$10.3Bn
Total………………….$1,900.2Bn
Still a large amount of dicey securities to be stuck with.
Hey Stephen,
$1.9 B of Treasury’s isn’t chump change but in the short term there’s really nothing dicey about these…everybody knows they’ll be paid. The rub of it is they’ll be repaid in dollars, something the BRICS are trying to reduce holdings rather than increase. Looks like the BRICS are taking the roll off approach rather than a more all out sell off.
Belgium is the home of the IMF. Backdoor QE via the NYFed anyone? Who is buying the Govt debt if China,Russia and the rest of the sane world isn’t? And without a gun to their heads? Future buyers will be the dopes who open a MYRA.