China’s Undisclosed Gold Reserves: A Dagger Pointed At The Heart Of The Dollar
David Smith
ETFDailyNews.com
January 20th, 2015
China has a 4-way global gold supply domination strategy. And it’s starting to corner the market.
First, China buys physical gold in world markets, fabricates it where necessary into “good delivery” bars – in Switzerland or the Middle East – then ships the bullion, transparently through Hong Kong or Shanghai (or quietly through Beijing and other ports of entry).
Second, it keeps virtually all domestically mined gold “in house.”
Third, China partners with or buys high grade, in-situ gold (and silver) projects around the globe. One of the most well-known recent actions has involved negotiations to partner with Barrick Gold on its massive cost-overrun-plagued Pascua Lama project, which straddles the Chilean-Argentine border.
Most recently, China’s largest gold producer, Zinjin Mining Group, made a strategic investmentin Pretium Resources’ high-grade Brucejack gold Project in northwestern British Columbia to the tune of $80 million. This latter investment will facilitate eventual construction of a 2,700 tonne-per-day underground mine.
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