Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree

Source: Tyler Durden, www.zerohedge.com, on 09/03/2011 17:22 -0400

Wondering why gold at $1850 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 US 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 only thing that matters from China's perspective is that "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 towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB." Now, what would happen if mutual and pension funds finally comprehend they are massively underinvested in the one asset which China is without a trace of doubt massively accumulating behind the scenes is nothing short of a worldwide scramble, not so much for paper, but every last ounce of physical gold...


From WikiLeaks:

3. CHINA'S GOLD RESERVES

"China increases its gold reserves in order to kill two birds with one stone"

"The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): "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 U.S. 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 towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB."


Perhaps now is a good time to remind readers what will happen if and when America's always behind the curve mutual and pension fund managers finally comprehend that they are massively underinvested in the one best performing asset class.


From: The Driver for Gold You're Not Watching (via Casey Research)

 

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But who pulls China's strings? Here's a hint:

Chinese vice premier meets with chairman of RIT Capital Partners

;-)

 

Here's another about how Americans have already been sold out:

“Sources at the United States Embassy in Beijing China have just CONFIRMED… that the United States of America has tendered to China a written agreement which grants to the People's Republic of China, an option to exercise Eminent Domain within the USA, as collateral for China's continued purchase of US Treasury Notes and existing US Currency reserves! The written agreement was brought to Beijing by Secretary of State Hillary Clinton and was formalized and agreed-to during her recent trip to China.”

THANK You Nota Khan - I felt there was more to the story! People really need to understand this, as Lame-Stream news will never reveal all this to them.

You are welcome!

 

Remember also that Rothschilds not only sit on the board of Pan Asian Metals Exchange and directly own 10% stake in it (indirectly how much they own is anyone's guess).

A Comment On The Rothschilds and the Pan Asian Metals Exchange:

I had previously disclosed the information about the 10% ownership in the Pan Asian Metal Exchange to my regular readers. I cannot put everything into every article.

Go back in history to the Battle of Waterloo (18 June 1815). What did the Rothschilds do? They told the City of London that Napoleon had won. Lord Rothschild appeared in public to sell his shares. But he had his agents buy back all of his shares and those of everyone who was panic selling.

In effect he declared war on the City of London in 1815 and won. The Rothschilds wound up owning the Bank of England until the post-war Labour government nationalized it.

How much do you want to bet that N M Rothschild is long on gold and silver while selling all of their paper?

(Now I disagree with this bit: "The Rothschilds wound up owning the Bank of England until the post-war Labour government nationalized it." I am sure even today they are in full control of it.)

 

P.S. Here's one of my posts that might be of interest. You think this is just conspiracy theory??

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