Martin Katusa: End of Petrodollar - Russia to Help Kill U.S. Dollar.

Rob McEwen Live On Gold, Silver And Los Azules Copper Potential Value Based on Lumina Copper Buyout.

Jim Rickards & Peter Schiff Discuss Global Gold Markets. $TNR.v $MUX $GLD $GDX $RGLD $ABX

  "Jim Rickards and Peter Schiff are explaining the complex global geopolitical situation as the part of the ongoing Currency Wars leading to The Death Of Money. BRICS Bank is the very important development among these very difficult economical and financial issues and its rising as alternative to IMF will play the very important role in the destiny of US Dollar and Gold."

Jim Puplava: The Swiss Gold Initiative With Luzi Stamm, Member of the Swiss National Council $TNR.v $MUX $GLD $GDX

  "Jim Puplava discusses the groundbreaking developments in Switzerland where the real democracy can be in action now. Even debates about the Gold and Money Printing will be unprecedented on the national level and if this decision finds the support of the people Central Planers will be in horror."

Dollar Crashes Below 80.00, Euro Breaks $1.38 - Somebody Read James Rickards' Book "The Death Of Money" Already TNR.v MUX GDX

  

  We have quite a morning today. In the early trading hours US Dollar was crashed below the all-important 80.00 level to 79.84 and Euro has broken $1.38 level. With all the ongoing Currency Wars and China pushing Yuan down Gold Demand is going strongly up. Now recent increase in demand for Gold to the record numbers in China can be put in another perspective. 

Jim Rickards ‏@JamesGRickards  23h

Stronger #Euro & #Gold as explained in Ch 5 & Ch 9 of #TheDeathOfMoney. Just back from the printers in NY @penguinusa pic.twitter.com/4C3i1CDiFw

  Somebody has read James Rickards' new book "The Death Of Money" and playing along with it. As we have noted before, Ukraine is another battle to be lost by the US dollar as The Reserve Currency of Choice. Who is selling US Treasuries today? Is it only angry Russia or is it China raising cash to Buy Barrick Gold's vault in the ground at Pascua Lama? 

  Now with Yuan pushed down and US Dollar going down after the highest number on record of Chinese selling US Treasuries, Gold has no other way but to go much higher. Short squeeze will help, as some banks were encouraging to sell gold again after this very initial advance, after bottoming in 2013. We have seen nothing here yet. The Mother of Short Squeeze in Gold and, particular, in Silver is still to come.

Ukraine, Syria And Global De-Dollarization: USD To Go Down And Gold Up TNR.v MUX RGLD GDX GLD ABX

Gold Breaks 1,320: The Mother Of Short Squeeze Has Arrived TNR.v MUX GDX GLD SLV RGLD ABX GG

  "Gold is sending its Happy Valentines to all Gold Bugs today and breaks $1320 on the massive short squeeze. Gold shorts will have their Blood Friday now. The real reason for this move is the realisation of the groundbreaking shift in the structure of the Gold market with the unprecedented demand of 2,181 tons of Gold from China in 2013. Janet Yellen testimony has opened the possibility To Taper The Taper and James Rickards is calling for the Taper Pause in June. US dollar is going down very close to 80.00 level again. This level will be protected, but should the US Dollar break down below 80.00 Gold and Silver will go vertical towards $1,500 and $25 respectively.
  Our short Squeeze watch includes McEwen Mining and TNR Gold. McEwen Mining had 26.8 million shares sold short or 8.6 days to cover, according to NASDAQ. MUX.to has rocketed from December low of CAD1.80 to CAD3.27 close yesterday. Gold breakout will push shorts into the corner, but explosive move in Silver will have even more effect on this company.
  TNR Gold is still day dreaming, but move in McEwen Mining should pull out this junior out of its misery. Los Azules Copper development will be next to watch on the back of recent M&A activity in the sector and CRB - commodity index breakout to the upside."

Frank Holmes: These Gold Charts Will Make Your Heart Beat Faster TNR.v MUX GDX GLD ABX GG RGLD

"Frank Holmes presents a very interesting set of charts supporting the bullish case for Gold and Gold stocks. Now with Gold crossing 200MA we have the game changer for the Gold marker. Professional traders have positioned themselves after 20MA was breaking out to the upside and smart money has followed after 50MA. Now the retail public will start buying the new Gold Bull leg.

  Number of Gold stocks with, McEwen Mining among them, has printed The Golden Cross already, when 50MA is crossing 200MA to the upside, confirming the bullish reversal pattern. It is very bullish set up and we expect the rally in Gold stocks to widen its base to include the smaller junior miners."

Hedgehog Trader ‏@HedgehogTrader  Feb 7

TNR Gold TNR.V is one of the most intriguing microcap stories I follow. #insidersbuying cc: @Sufiy @TedDixon @inkresearch

TNR Gold Insiders report: CEO And CFO Buying Shares. 

Gold Breaks Above $1,300: Yellen Pledges Continuity; Rickards Says Prepare For A 'Taper Pause' In June TNR.v MUX GDX

  Jim Rickards was spot on the money with his last call on Gold just before its breakout of the $1270 level. Now he is calling again for the Taper Pause in June. Today Gold was knocking on $1,300 with the highest print of $1,303 so far and shorts in the Gold market can experience the Blood Friday tomorrow if Gold can manage to close above this psychological level.

  The real driver is the unprecedented demand of 2,181 tons of Gold from China in 2013:

Unprecedented Total Chinese Gold Demand For 2013 Was 2,181 Tons TNR.v, MUX, GLD, GDX, RGLD

  "Yesterday WSJ, Reuters and Bloomberg have created a lot of buzz in mass media about unprecedented Chinese Gold demand of over 1,000 tons in 2013. Koos Jansen reports that actual demand was almost double that and stands at 2,181 tons of Gold, excluding PBOC purchases! Koos Jansen makes the great work of the forensic investigation of the real Gold market in China and his work is highly recommended for all interested in the gold market.
  Gold is trading higher today at high $1287 in Asia after breaching $1270 level. The Mother Of Short Squeeze has finally arrived in the Gold market and Janet Yellen testimony today will provide the catalyst."

Jim Rickards: Gold Set for Massive Rally TNR.v, MUX, GDX, GLD, SLV, RGLD, ABX, GG

  "Jim Rickards presents his hew book and talks about the real fundamentals supporting his call for the much higher price of Gold. It is the very good piece to continue our conversation about the state of the Gold market and its ongoing manipulations this weekend."

Toby Connor: The Great Inflation Of 2014 - Gold And Silver To Rise TNR.v, MUX, GDX, GLD, SLV

"Toby Connor provides very interesting technical view on the general markets, Commodities, Gold and Silver. Nobody can find inflation these days and his take on the final rise and bust in the general markets is very intriguing. Our own observations confirm the CRB - Commodities Index breakout and that Gold is knocking on the $1270 with huge break out to the upside after that. Supply and Demand picture provides further support to the technical observations in Gold and Silver markets these days. Where the Gold will come from in the future with China record buying continued? M&A activity will be driving the next Bull market in Gold and Silver miners."

Copper M&A Heating Up: OZ Minerals Gets Approaches on $2.7 Bln Copper Project MUX TNR.v CU GDX

 "Copper M&A is heating up and now Australia's largest unmined copper deposit is in play. Rob McEwen should be using this momentum now in the market place and put Los Azules copper deposit on the industry radar screens. TNR Gold and McEwen Mining will be very well positioned for this upturn in the market place. CRB index is breaking out and increasing M&A activity is signalling that the bottom is in place for the resource sector.  Meanwhile McEwen Mining has breaking out to the upside above CAD3.0 with Gold in a breakout mode."

Jim Rickards: Gold Set for Massive Rally TNR.v, MUX, GDX, GLD, SLV, RGLD, ABX, GG

 

  Jim Rickards presents his hew book and talks about the real fundamentals supporting his call for the much higher price of Gold. It is the very good piece to continue our conversation about the state of the Gold market and its ongoing manipulations this weekend.

Toby Connor: The Great Inflation Of 2014 - Gold And Silver To Rise TNR.v, MUX, GDX, GLD, SLV

"Toby Connor provides very interesting technical view on the general markets, Commodities, Gold and Silver. Nobody can find inflation these days and his take on the final rise and bust in the general markets is very intriguing. Our own observations confirm the CRB - Commodities Index breakout and that Gold is knocking on the $1270 with huge break out to the upside after that. Supply and Demand picture provides further support to the technical observations in Gold and Silver markets these days. Where the Gold will come from in the future with China record buying continued? M&A activity will be driving the next Bull market in Gold and Silver miners."

Paul Roberts: Market Manipulations Become More Extreme, More Desperate TNR.v, MUX, GDX, GLD, SLV

  "Gold is hitting hard on the door of $1270 after which the Gold shorts will have the "religious experience." Gold market manipulation is still ongoing, but participants becomes more desperate by the day. You can find a lot of comments these days on the number of recent "suicided bankers" and some parallels drawn to the ongoing investigations in FOREX and Gold markets   manipulations. Quite a few FOREX head traders are already left the major banks or being suspended. These games can not last forever, particularly when China is buying the record amount of Gold and vaults in the West are empty now.

  Paul Roberts provides us with very good observations of the mechanics of Gold market manipulations and we continue our investigation started this weekend with Eric Sprott and Dimitri Speck."

EpochTimes:

Interview with Jim Rickards: Gold Set for Massive Rally

The author of the best-selling book ‘Currency Wars’ talks about his new book and why gold will rally in 2014

Epoch Times: Mr. Rickards, please tell us about your new book, “The Death of Money,” coming out in April. 
James Rickards: It’s both a prequel and a sequel to “Currency Wars,” my first book. It’s a prequel in a sense that “Currency Wars” opened with two chapters that describe a financial war game that took place in a top-secret weapons laboratory in 2009.

That was the first time the Pentagon had ever done a war game where the only weapons could be financial instruments—stocks, bonds, derivatives, currencies.

How did I get involved in it? I start out talking about earlier involvement in national security matters and that led up to the war game. That part is the prequel. 

The sequel is that in “Currency Wars” I also had a lot of history. There were five chapters of history and I thought that was very important. 

If you are going to talk about gold with the reader, a lot of times if you jump right into gold, people think you are sort of a nut. I find if you tell the story through history people can see gold in a context, and when you talk about it, it doesn’t seem quite so strange.

In my new book, “The Death of Money,” there is no reason to repeat the history—that’s all in “Currency Wars”—so it’s more forward leaning, and talks more about the future of the international monetary system, a coming collapse. 

And not just a collapse, because a lot of people are running around talking doom and gloom, the end of the dollar and all that. I might even agree with that, but I don’t think it has a lot of content. 

What I try to do is provide a more in-depth analysis describing what will come next, what the future international monetary system will look like. 

I point out that the international monetary system has already collapsed three times within the last 100 years—1914, 1939, and 1971—and that another collapse would not be at all unusual. But it’s not the end of the world. It’s just that the major powers sit down and reform the system. I talk about what that reformation will look like. 

So that’s the sequel or the continuation of the story looking over the horizon. Some stuff that is before “Currency Wars” and some stuff that is after. And other content on the contemporary situation in Europe and China, so I hope people enjoy it.

Epoch Times: What about gold?
Mr. Rickards: Gold has a number of vectors. It is technically set up for a massive rally. Let me separate the fundamentals from the technicals. 

Fundamentally my target price for gold is in the range of $7,000 to $9,000 per ounce. That’s not something that will happen straight away, but it’s not a 10-year forecast either. It’s a three- to five-year forecast, for the price to rise by about five to six times.

Epoch Times: What is the analysis based on?
Mr. Rickards: It’s based on a collapse of confidence in the dollar and other forms of paper money. To restore confidence you have two means: You either flood the world with liquidity from the International Monetary Fund in the form of Special Drawing Rights [SDRs, a form of money issued by the IMF], or we return to a gold standard. 

The flooding of the market with SDRs would be highly inflationary, so that by itself would drive gold to a higher level. If they go back to a gold standard they will have to take a non-deflationary price. 

People say there is not enough gold in the world. The answer is there is always enough gold in the world. It’s just a question of the price. Now, at $1,300 an ounce, there is not enough gold to support world trade and finance. But at $10,000 per ounce, there is enough gold. It’s not about gold, it’s about the price.

If you go back to a gold standard you have to avoid the blunder that England made in 1925, by going back to the gold standard at the wrong price, which proved to be highly deflationary, and contributed to the Great Depression. 

I’ve done the math on that and the non-deflationary price for a gold standard today is about $9,000 per ounce.

Epoch Times: What is your target price based on?
Mr. Rickards: It’s based on supporting the paper money supply with gold. That would be using M1 [paper notes, coins, and checking accounts] as the monetary base, with a 40 percent backing. If you were to use M2 [M1 plus savings accounts and money market funds] with a 100 percent backing, that would be $40,000 per ounce.

Epoch Times: Gold investors would make a killing!
Mr. Rickards: It wouldn’t mean gold would be worth any more [in real terms]; it would just mean the dollar has collapsed. But yes, you get more dollars for the ounce. Let’s call that the three- to five-year forecast. 

For the year ahead, those fundamentals are unlikely to play out in a year. But the technicals can play out. Technically, gold is set up for a major rally based on the decline in floating supply.

Epoch Times: Does that have to do with the gold crash last year?
Mr. Rickards: There was 500 tons removed from the GLD [Spider Gold Trust ETF] warehouse by the bullion banks. That was a massive physical overhang removed from the market. People don’t really understand how the GLD ETF works. When people are buying the GLD, they are not buying or selling gold; they are buying and selling shares. 

The gold sits in a warehouse and is only available to authorized participants. If you look at the list of authorized participants and look at the list of bullion banks, they are pretty much the same people: Goldman Sachs, Citigroup, JPMorgan, Morgan Stanley, Deutsche Bank, HSBC, etcetera.

Those banks have the ability to buy up shares, take the shares, cash them in, and get physical gold. And they were doing that and they were sending that gold to Shanghai to support trading and leasing on the Shanghai gold exchange. So when you take 500 tons and dump it on the market, that’s about 20 percent of the annual mining supply. It’s a massive physical injection. 

The other factor is just outright manipulation, which is very visible in Comex future prices. I’ve seen some statistical analysis that demonstrates market manipulation beyond the shadow of a doubt.

Epoch Times: A double whammy … 
Mr. Rickards: So the point is that between central bank manipulation through Comex futures and bullion banks dumping the physical, and by cleaning out the GLD warehouse, and also the Comex warehouse for that matter, there is a massive amount of gold that came on the market over and above normal supply trends, putting massive selling pressure on the Comex. 

So that was a bad combination, but the problem is that it’s not sustainable.

Epoch Times: So what now?
Mr. Rickards: You can’t loot the warehouse twice. Once you take all the gold out, you can’t take it out again. JPMorgan’s vault is low, Comex’s vault is low, the GLD’s vault is low.

Epoch Times: Where is gold going?
Mr. Rickards: One of the big movements right now is gold moving from places like UBS, Credit Suisse, and Deutsche Bank to private storage such as G4S, ViaMAT, and Brink’s. That doesn’t increase the supply of gold at all. But what it does do is it decreases the floating supply available for trading.

If I have my gold at UBS, UBS typically has the right of rehypothecation. But if I take my gold and move it over to ViaMAT, it’s just sitting there and it’s not being traded or rehypothecated. 

So, if I move gold from UBS to ViaMAT, there’s no more or less gold in the world. I’m still the owner, and it’s the same amount of gold. But from a market perspective, the floating supply has decreased.

The biggest player in that is China. China is buying thousands of tons of gold secretly through deception and using military intelligence assets, covert operations, etcetera.

Epoch Times: So why will gold rally then?
Mr. Rickards: There is a total supply of gold in the world. But to corner a market or squeeze a market, you don’t need to buy all the gold, you just need to buy the floating supply. Think of all the gold in the world, it’s about 170,000 tons. Think of a little sliver on top of it that is the floating supply available for trading. 

Gold that’s in the Comex or JPMorgan or GLD vaults is available for trading. Gold purchased by the Chinese will not see the light of day again for the next 300 years, and is not available for trading. So with the gold going from West to East, and from GLD to China, the total amount of gold is unchanged, but the floating supply is declining rapidly.

This means that the paper gold that sits on top of the floating supply is becoming more and more unstable and vulnerable to a short squeeze, because there is not enough physical gold to support it. So that’s likely to collapse at one point and lead to a short squeeze and heavy buying.

Epoch Times: Mr. Rickards, thank you very much for the interview.

James Rickards is the author of the national bestseller “Currency Wars” and the forthcoming book “The Death of Money.” He is a portfolio manager at West Shore Group and an adviser on international economics and financial threats to the Department of Defense and the U.S. intelligence community. 

The interview has been edited for brevity and clarity."

The Chinese Government’s Gold Policy, From The Horse’s Mouth MUX, TNR.v, GLD, GDX

  

  Koos Jansen reports how China implements Gold accumulation plan with the military precision and appropriate attention to the detail. We should not be fooled by the reported official numbers as China uses different tools to accumulate gold reserves. Jim Rickards has addressed this issue in his interviews before and now we have another confirmation of the State-level Gold policy implemented in China. This policy stands in the very sharp contrast with the Ben Bernanke's confession that he does not have a clue what Gold really means. 
  China knows about the fraud in the Fractional Gold Reserve System in the West and that there is no Gold left, like case with Germany Gold repatriation clearly demonstrates, and takes no chances by taking all available physical delivery in the higher purity 1 kg Gold bars. Last year we have already witnessed the first results of this plan broad implementation with China becoming the top Gold consumer in the world.

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 forlargest 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."

In Gold We Trust:

The Chinese Government’s Gold Policy, From The Horse’s Mouth

Notes from the translator, LK:

“This is a detailed policy memo from the country’s highest government to let the various ministries and department know of the direction, intentions, progress and steps of development of the many facets and components of the gold market that serves both the gold industry and other areas of finance.

So they sure are in it for the long haul and mean it well for everybody. I’d say this is pretty convincing of our possible future landscape!

I consider this one big piece of the jigsaw, as so far as there has been little of what China thinks or is doing, other than buy buy buy.”

Here we go..

 

A Communication On How We Should Help Develop The Gold Market.

The Opinions From:

People’s Bank of China (PBOC)

National Development and Reform Commission (NDRC)

Ministry of Industry and Info Technology of the PRC (MITT)

Ministry of Finance (MOF)

State Administration of Taxation of the PRC (SAT)

China Securities Regulatory Commission (CSRC)

To various bodies including and not limited to:

To: PBOC Shanghai HQ, branches, provincial capital city center branches, sub-provincial city center branches, provincial development and reform committees, CSRC, national inland revenue, SGE, SHFE, State owned banks, share-ownership commercial banks etc.

2012-03-07

1. The importance of understanding a healthy development of the gold market

The gold market is an important component in the make up of financial markets. Gold has both financial and commodity attachments. Good efforts to develop the gold market will enable it to play a unique function not found in other financial assets, complementing and helping the other markets in finance, completing our financial system helping in both breadth and depth, raising our market’s competitiveness and readiness to respond to crises, contributing to stability and security of our finances.

Developing our gold-related industries will not only help raise the competitiveness of these industries, but also help other mining and resource industries. Since the reform started, our gold industries have developed steadily along the supply chain which includes exploration, mining, refining, trading, investment, value-added and retail sectors. A well-functioning gold market can help these sectors in financing needs, risk management, cost-lowering, supplying market information to these enterprises, helping them make production and operation plans, thus help restructure and raise the standard of these industries.

The tradition of gold investment and consumption is with our people/citizens. As the private sector grows at speed and living standard upgrades, private demands for gold jewellery, coins and investment gold are also growing quickly. A gold market with a rich diversity of products will help develop new investment channels, satisfy the varied demand, help investors make appropriate asset allocations, raise investment returns and protect our wealth assets.

2. Next-step clarification of the positioning of the gold market development

After replacing the previous collective-buying practice policy, our gold market has developed speedily; the coordinated development of the gold industry supply chain have started to form, with the contribution in the business developments of the Shanghai Gold Exchange and the commercial banks and the Shanghai Futures Exchange. The gold markets should be developed to serve wide-scope gold-related industries, with the goal of raising the competitiveness of our financial markets, letting the gold market play the important part of making our financial markets whole. We need to facilitate and encourage communications and coordination, and establish such mechanism especially between the SGE and SHFE.We also need to be more innovative developing RMB-denominated gold derivative products, increasing the diversity of product types, enabling the market function to perform better with depth, improve regulation and openness at the same time, building a multi-faceted, multi-level market system.

As soon as possible, the SGE needs to clarify and establish plans for the future market development and positioning of itself, improve and strengthen its service offering structure, bring its different policies and practices of different areas up to standard and make sure market regulation practices are well and smoothly in-force. Pay attention and seriously consider the opinion and suggestions of your members, do a good job to really service your members. We need to strengthen and improve areas of trading, gold-cash settlement, assaying and certifying of gold quality, the vaulting and shipment of gold. We need to study in depth the nature of the evolution of the gold-related industry and the gold market, so that the SGE can play its important role in promoting the healthy development of the gold market and related infrastructure building.

The SHFE should make full use of the future market price discovery and its function to manage risks to steadily and advance the healthy development of our gold risk-management market, adding to fundamental policies framework supporting the gold market. With the central aim of letting the market do its proper job, we need to make good and keep good the policies and regulations towards gold futures contracts and related businesses, making the gold futures market deep and with attention to details, thereby raising the level of service towards the broader private sector economic development. We need to keep raising our ability to control risk in the market, including managing and appropriately encouraging our members to look at themselves and do business with fit and proper conduct, effectively pre-empt and dissolve market risks. We also need to look at and make good the structure/composition of gold investors. Support gold enterprises so they can actively participate, using the futures market to protect values across time. Actively guide other financial institutions to use the gold futures market to manage risk.

Commercial banks should look towards the entire supply chain from gold mining to fabricating and value-added processing to final sales, practically innovate new financial products that are effective in helping each area in the chain with financial service. We need to cater to the needs of enterprises and market development at the same time, be innovative in developing business areas of physical gold sales, gold leasing, futures and options on futures too, enrich the product range, so as to satisfy the financing needs and risk-avoiding needs of enterprises. Encourage and guide commercial banks in developing RMB-denominated gold derivatives trading. Guide more financial institutions to make use of the gold market, broaden and deepen our gold market.

3. Strengthening gold market services system infrastructure

Build and strengthen  gold market system infrastructures. The SGE needs to further strengthen its trading infrastructure, be innovative, complete the gold market system. Introduce and enrich different models/modes of trading, introduce market maker system, raise the liquidity of the gold market. Speed up work on disaster-recovery systems, bring back-up systems up-to-speed. Further improve cash capital management systems, secure and protect customer funds.

Bring our gold assaying system up to standard. With respect to our gold industry capabilities and practical development needs of the market, learning from the experience of international gold markets, refine and improve our systems on gold ingot eligibility applications, assaying, appraising and inspection / checking, raise the standard-setting standing and reputation of our system, help move the establishment of our gold market standard assaying system. Consider the resources of our country as a whole, noting special features of the gold industry, do our reasonable best to make sure that the gold bars and ingots vaulted by our industry are up-to-standard.

Make a good vaulting-transportation system. Consider all the factors relating to the gold production and actual consumption of our country, set up a good system of settlement vaults. Collect and consider the business costs of our commercial banks and members, set reasonable (standard) fees for moving gold in and out of vaults, and storage fees. Set up good transport system network, prepare low-cost, high-speed efficient service of transportation to the market.

Perfect our settlement service systems. According to the needs of the market, practically improve the system infrastructure of gold account services, offer more convenient and fast physical gold settlement and gold accounts to the market. Learn from the experience of the international market, investigate and propose multi- and different types of gold account services. Improve the gold market’s capital settlement services.

4. Bring about satisfactory gold market laws, regulations and related policy supporting system

Speed up gold market laws and legal framework building. Help move forward the Ordinance of gold market management/regulation. Formulate plans to manage gold and gold-made products imports and exports. Step up management of financial institutions on gold products, guide and motivate framework for steady development of financial institutions’ gold-related businesses.

Make up gold market related taxation policy ready for implementation. Continue to execute existing set of taxation plans from SGE and SHFE. Research into good taxation policy on investment gold and commercial banks gold business.

Look into broadening supply channels for physical gold for the gold market. With respect to actual market needs and how our gold markets are, increase the number of commercial banks qualified to do import-export business, help the market to become innovative, raise the level of liquidity in the market. Develop the gold leasing market based on free market principles.

Work on and improve the gold market financing services. According to applicable credit policies and principles, commercial banks needs to increase the access to amount of credit for qualified large enterprises that fit the gold supply chain plans for development of our country. Give special support to large-scale gold enterprise groups’ development to aid them to achieve the strategy to “go outside” into the international arena, and help them with related gold financing service business that they have. Support these groups when they issue bonds, short- and intermediate-term notes for lowering financing costs. When suitably qualified enterprises engage in mergers or acquisitions, help them with loans to aid industry restructuring, to simplify the business and achieve better scale effects. Regarding value-added processes and retailing, take note of each of their business characteristics including cyclical features, help form a financial services system that takes care of their needs from liquidity all the way to final sales. Think about new financial products that will help them in their businesses, making use of collateral values in receivables and inventories as necessary. Encourage financial institutions in developing financial services with gold as collateral. Banks should study and understand problems in credit issues of value-added processing and retail businesses, and propose practical solutions.

Forex management policies: help make a good current gold market foreign currencies management policies/strategy. In order to help guide commercial banks to develop RMB-quoted gold derivatives trading, working with SGE’s price quoting system infrastructure, work to allow commercial banks that are developing RMB-denominated gold derivatives to be able to hedge on-shore gold trading margin with off-shore position without actual gold import-export business operations. Research into the possibility of allowing banks that are planning to develop such business to allow them to use other FX open positions margin to compensate in the overall margin required in total on-shore positions.

Move the gold market towards external openness. Steadily increase the number of foreign members of the SGE. Look into allowing off-shore qualified ingot suppliers to supply to the SGE. Look into allowing off-shore institutions to participate in SGE transactions.

5. Pre-empting gold market risks.

Step up regulation of the gold market. Each department should fulfil regulatory responsibilities seriously. With good communication and collaboration, work together for the integrity and benefit of the market as a whole.

Commercial banks should step up risk management and control. Plan well for related services, make sure businesses opening satisfy requirements. Make sure system infrastructure investments are sufficient to protect security and integrity of transactions. Policies should be suitable towards particular characteristics and risks of each business to pre-empty risks.

Intermediaries need to step up on self-discipline. The SGE and SHFE need to make sure transactions, delivery, settlement and gold account and other services are well supported by system infrastructure including for on-line products, and make sure that all the services offered are safe. Make sure members behave, markets are orderly. When market conditions change, take timely action to pre-empty risks.

6. Protect the investors.

Use a multi-form approach, work to have better educated and mature investor groups for the gold market. Step up training for gold market industry staff, raise the degree of professionalism. Step up education on gold market risks, let the players be well cognizant of risks. Market players should well understand the importance of protecting investors interest and the healthy development of the gold market, so that when they encounter issues, they raise them with authorities appropriately. Let market participants know what behaviour is expected, that underground speculative activities are strictly forbidden. Any violating departments will face strict punishment and posted to records.

In Gold We Trust

Source"