China from a standing start became the largest gold.
Mine producer of gold in the world.
Over 20,000.
Tons of gold has been withdrawn from the Shanghai Gold Exchange falls
into public hands.
Well, I mean it's true in the sense that there's officially declared
reserves, but you should bear in mind that China introduced
regulations appointing, The People's Bank with so responsibility for
the state's gold and silver way back in 1983.
And I mean there's so you can you can get these regulations online.
I mean that the there there's an English translation of
And what then happened was that at that time, ordinary people were
banned from owning gold.
And that ban was lifted in 2002, when the Shanghai gold exchange was
opened.
And people were then encouraged.
In fact that you know, there was even a media campaign television
advertisements and all the rest of it.
Persuading Ordinary People go out and buy gold and consequently from
2002 to today.
Over 20,000 tons of gold has been withdrawn from the Shanghai Gold
Exchange false into public hands.
Other circumstantial evidence.
We know that the state
A complete Monopoly on gold and silver refining within China.
We also know that girl that goes into China, and never comes out, you
know, so, what's going on?
Well, the answer is quite simple.
There is only one explanation.
Oh, and another thing, China from a standing start became the largest gold.
Mine producer of gold in the world.
I mean, by a country mile and this reflected in
Enormous investment by the state in it.
So, you know, why, why?
Well, the answer is quite simple.
And that is that between 1983 when the regulations were struck and
2002 China.
Obviously, accumulated, sufficient gold, physical gold bullion to
satisfy, its requirements, whatever they were.
So they were obviously building a stash of gold.
So we're not talking about 2,000 tons.
I mean I
I looked at the capital flows.
First of all, inward Capital flows as the West basically invested in
production, in China.
And then after that, the flow started going the other way on a net
basis as China began exporting become became.
Net exporter.
So there was substantial Capital flows going on.
So, where China is basically they have obviously had a program of
accumulating gold in that time between 2000.
Sorry between 1980 83 and 2002.
I estimate on the bat basis of capital flows that China probably
accumulated at contemporary prices and remember,
Or that at that time, gold was in a bear Market Falling Towards sort
of 250 dollars an ounce.
He could quite easily have accumulated over 20,000 tons of gold and I
mean when I first came out with his estimate though, people say that
was absolutely what evidence is he got?
So on, I don't have any evidence other than the circumstantial
evidence, which very strongly points in this direction.
So, I don't know the true figure, but what I do know, is that
Subsequent to that, China has made sure that her people have a
reasonable exposure to gold and not only that she stops any gold
leaving the country.
Apart from a little bit of gold, which goes into Hong Kong for jewelry
fabrication.
So that Chinese citizens from the mainland.
When they go into Hong Kong to do shopping.
They can buy gold jewelry free of sales tax.
You know, and that's it.
I mean, that's the only goal that ever comes out of out of China.
So you have this policy really where, you know, not part of the
official Reserves at all, but China has made sure that not only has
she got substantial physical gold reserves as a nation.
She's ensured that her people have been encouraged to accumulate gold
as well.
And furthermore.
She dominates the
Exchanges for physical gold, I mean, America, and London paper, gold.
I mean, it's as simple as that.
Okay.
Well, you know, we store, I think the London V.
We got eight thousand four hundred tons or something, you know, but
that includes the bank of England's faults.
And you know, when you look at the liquidity, the physical liquidity,
alumnus pretty small.
This is very different in China, and the other thing is in,
Arresting is the situation with Russia, because my information, and
this comes from sources, I have found in the past to be reliable, is
that Russia also has a stash of gold?
But it's not, there's nothing like the scale of China's, but it's
considerably more than the declared gold reserves.
So, you know what you've got.
I think he is an Asian mentality that accepts that gold is money.
It is legal legal.
He was being legally money since Roman law and that's confirmed in
English law, which was the basis to feel like AB international
business law and became the basis for, you know, monetary law
worldwide.
So yeah, they understand that.
I mean, the only bit that we have forgotten and this is because this
of an intense intensive campaign by the American government to try and
dissuade us that the dollar is the
New money and not gold.
You know, I'm sorry, but that's actually not the position.
So we've got to understand that this sort of Keynesian idea.
That gold is just a pet rock or, you know, historical and nothing to
do with the future is actually a load of rubbish, by almost by
default.
I mean, isn't there in the background?
I'm about to run out to the shops and spend it.
I mean, even though it's legal tender.
We're not going to do that.
Are we?
We're going to spend the rubbish first.
I mean this is gresham's law.
We sped the paper stuff first and we hang on to the gold and this is
actually what Russia China and all the other countries around, you
know around the Eurasian continent will be doing.
I think we've got the makings of an enormous squeeze on the system
which
Nobody wants to see.
I mean no, but you and I if you got physical gold, probably say serves
him, right?
But the establishment, if you like governments and, you know, the
major Banks and all the rest of it, they don't want to see the gold
price Rising.
I mean, they they can handle it, gentle price rise, but if gold
suddenly took off, I mean this would be, you know, it would just raise
so many questions, not only that, but it would probably break the
bullion Banks as well because they're, they're short.
I mean, you know, it's as simple as that and there isn't the liquidity
for them to cover.
The only cover they get is they go in and say right, we'll, we'll put
us, you know, a backstop on opposition like we will
Go and we will buy an out of the money option which we can exercise,
if say, the price goes over 2100.
Okay, so, you know, and you will find someone who's prepared to quote
an option rate to sell to a Boolean bank for a call at the strike of
2100.
I mean, you know, but the whole system depends on
the derivative markets not failing.
So that is something which we should also consider because once girl
really gets going, and it's not so much gold Rising.
It's it's paper.
Currencies Fiat, currencies in the west falling.
That's really the key Point.
Under those circumstances.
Then there could be a major crisis developing in Precious Metals
markets because, you know, I mean China and Russia.
All the rest were more or less Corner the physical market.
We've just got paper and that paper is
Pretty much valueless.
Really, you know, when things get unstable.