Thursday, January 23, 2014

China set to hike official gold reserves to 5,000 tonnes next to combat its growing financial crisis? $TNR.v, MUX, GDX,


  ZeroHedge reports today that China's Gold reserves ... are the same as reported in 2009 - it is the total joke by all means and Jim Rickards explains very well why. Accumulation of Gold is the military exercise in China, they are using different vehicles in order not to drive the prices up. FT reports that China Becomes Top Gold Consumer in 2013. And according to China's report to IMF:

China Expands Gold Reserves to 2,710 Tons - Third Largest In The World 

  Now Chinese companies are moving down the food chain and are bidding for largest Copper deposits and Gold companies. Eric Sprott is covering this subject very well and we are facing the real Gold shortage with record high COMEX leverage and record low stock of Gold available for delivery. 
  Gold is moving fast to the upside today with falling US Dollar and general equity markets. The real fireworks will be started after Gold cuts through $1270 level and the real Short Squeeze begins.

There Is No German Gold Left At The New York FED GLD, MUX, TNR.v, GDX

"Die Welt has reported today the bombshell announcement for the Gold market. We have discussed before that only 37 t of Gold out of 674 t was delivered to Germany in 2013 and that the Gold bars were Melted. So not a single original German gold bar was returned to Germany so far! 
  ZeroHedge reports today that surprisingly only 5 t of gold has been delivered from the NY FED - the rest came from Paris. Now it is not the conspiracy theory any more that there is no German Gold left at the NY FED.
  Now all the manipulations in the Gold market and constant smashing down the price in 2013 are coming into another perspective. Germany is very serious about the investigation of the manipulations in the Gold market - it was already reported thatprecious metals manipulation is worse than LIBOR scandal.  This investigation has already claimed the first victim: Deutsche Bank to withdraw from Gold fix amid probe.
  With the highest on record leverage at COMEX of 112 owners for every single ounce of Gold and record low COMEX registered Gold at 11 t we have the set up for the major blow out phase in the Gold market. Who in their mind will continue to hold Gold at LBMA any more? According to Eric Sprott, we can expect a failure to deliver Gold and lawsuits with deliveries last February from COMEX of 40 t and China buying at least 100 t of Gold every month on average now.
  Once Gold will breach $1270 level Andrew Maguire's discussion about the massive short squeeze will become the reality and even if his predictions about $200 Up-days will not materialise, the move by Gold to the upside from the most oversold condition in history will be nothing less than spectacular."

McEwen Mining Receives Final Environmental Permit for Construction and Operation of El Gallo 2 Project MUX, TNR.v, GDX

 "Rob McEwen is on track with development of El Galo 2 and now, after the last main permit has been granted by Mexican authorities, the only question remains where the capital will come from. McEwen Mining had a very impressive run from December $1.65 low to the recent highs of $2.63. Los Azules Copper development remains the major catalyst for McEwen Mining in case of sale of this asset and it will make development of the existing pipeline of project feasible and further acquisitions will bring the dreams about S&P 500 back."


China set to hike official gold reserves to 5,000 tonnes next to combat its growing financial crisis?

The Internet is abuzz with rumours that China may be about to reveal its new official gold reserves with a total of up to 5,000 tonnes way above its previous 2009 tally of 1,054 tonnes. Last week the world’s second largest economy pumped in $42 billion to shore up its faltering credit system.
Raising official gold reserves to become the second largest holder of the monetary metal is another card China can play to underpin its economy as it struggles to grow exports. These are the savings from the good times to help the country through less easy days.
Monetary metal
‘Currency Wars’ author Jim Rickards says: ‘This should be an earthquake. Even the gold deniers, the gold doubters, the Nouriel Roubinis of the world are going to have to sit up and take notice. If gold is a barbarous relic, if gold has no role in the monetary system, if gold is a stupid investment – and that’s not my word, that’s their word; they say the people who invest in gold are idiots and fanatics and a lot of other less acceptable words – well, if that’s all true, why would the Chinese have 5,000 tonnes?
‘The minute you think of gold and paper money side by side, or having some relationship, this is how you get to these price levels of $7,000-9,000 an ounce.
‘They’re not made up. They’re not there to be provocative. They’re actually the math. Those are the numbers you get when you simply divide the money supply by the amount of gold in the market.’
Gold solution
So when will China show its hand? It’s absolutely no secret in the gold industry that huge amounts of physical gold have been heading into China for the past few years. Only last week we heard that the Shanghai Gold Exchange delivered a record 2,197 tonnes in 2013 (click here). This is just the tip of the iceberg.
It’s unbelievable that Goldman Sachs and Morgan Stanley persist in frightening markets with talk of $1,000 an ounce gold knowing this. Then again they could well be buying everything they can buy at current low prices or acting as an agent for the Chinese. Gold is the very stuff of conspiracy theories.
The rumours say that China will make its new reserves public in the first quarter. All gold price forecasts will be transformed if they do and our gold stock picks will surge ahead (click here)."

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