The Chinese Are Buying Gold As If They Knew The Dollar Would Die Very Soon
September 9, 2012
China’s year-to-date gold imports from Hong Kong are now a record 458.6 tons, well over four times greater than the seven month total in 2011. The Chinese are the world’s largest gold producer and had an output of 355 tons. The Chinese used to export silver but now consume their entire annual production. China owns gold and silver mines in other countries and might have large stocks of bullion under different names around the world. As a side note, the US has been melting down its pre-1965 99% to make up for its production shortfalls. Since silver is often mined with copper, silver has declined in output by 14% this year.
Two American financial reporters talked to Bundesbank officials in Germany who told them that China has at least two or three times the total amount of gold reserves they claim. They said nobody outside China knows the real number which is a closely guarded state secret. They have not bothered to announce their total gold holdings since April of 2009 though they have announced plans to go to 6,000 and then 10,000 tons with no dates given. The ascendancy of China in the 21st century has made Sun Tzu’s Art of War required reading. He said:
‘When you are far pretend to be near.
When you are many pretend to be few.