hi everyone Jeff Clark at goldsilver.com
here back with you in another video with
Mike Maloney Mike how are you doing
today I'm doing great Jeff how you doing
very good I think a lot of people
listening know about the shift in gold
from west to east but you had some
interesting data and some charts that
you showed me yesterday that I thought
were really good and we might want to
share with our audience because it shows
how that trend is really picking up
steam so what did you got for us today
yeah some of these charts are from Nick
Laird at gold charts are us you know
he's been good friend the first one here
is the u.s. gold stocks and so this is
the blue is us gold held at the Treasury
and the Federal Reserve the red is
outside the Treasury in the Federal
Reserve and since this chart goes back
to 1880 this would be gold in
circulation and so on so it's gold in
the banks and gold in the hands of the
public and then we also have earmarked
gold which is a gold that is owned by
the US but it's held in foreign central
banks and international accounts and
then you've got the gold price of course
the black line but what's interesting is
all of the earmarked gold that has been
sold off since you know here's the end
of Bretton Woods here so we were no
longer on any gold standard but this
earmarked gold being sold off during
that period of time it's it's quite a
bit of it and what you see is that we're
getting this big shift of gold going
from the west to the east this is also
from Nick lair that gold charts are us
and what you see here is the black line
is the cumulative imports from the Hong
Kong exchange into China so this is a
gold that is being purchased on the Hong
Kong exchange and then imported into
China and there was a
you'd shift that happened sometime in
2011 and they have just been
accumulating ever since
so this gold is not just sitting in the
exchange and being traded back and forth
to different hands it's in the exchange
one day and then the next day it's
Freight going to China this is the
Shanghai gold exchange so this is a you
know Shanghai is in China and these are
gold withdrawals so it's how much is
being taken off of the exchange just
like that
Hong Kong one and the long-term trend
here is what's important if you look
over here in 2008 they were importing or
they were withdrawing less than 50 tons
of gold per month and now it's over a
hundred and fifty tons some months
averaging more than 175 even more than
200 tons of gold and then you know their
forex reserves you know China had four
trillion dollars worth of forex reserves
the foreign exchange currency reserves
so other countries currencies and bonds
most of these reserves are bonds because
bonds pay interest and most of those are
u.s. US Treasury bonds and the reason
they accumulated all of those was to
manipulate exchange rates it's something
we'll talk about in another video I
don't know it's it's a lengthy
explanation I don't want to try to
explain it here but to be able to peg
their currency they had to neutralize
the excess dollars that were flowing
into China and they did that by
replacing that excess currency with
Chinese yuan and taking the bonds and
holding them instead of putting them on
the foreign currency exchange but what
we see here is that they've gone from 4
trillion
down to 3 trillion in just a few short
years that's a 25% reduction that is
HUGE
they are unloading their foreign
currency reserves and they're buying
precious metals
and when you take a look at the Silk
Road countries so this is India Turkey
Russia and China put together the
reserves that they are building the kid
the cumulative demand between these four
countries if you look at it back in 1995
it was a tiny percentage of world
production and it's been growing and
growing and growing and since 2013 on
the average the demand from just these
four countries exceeds all global
production of gold and that means the
difference has to be made up of gold
flowing from west to east and we'll talk
about another article on this later
about gold being taken off of the London
bullion exchange and the and we refined
in Switzerland into one kilo bars and
shipped into China but it's an
interesting thing about when this when
all the dust settles countries that were
formerly rich are going to be much
poorer in countries that were formerly
poor are going to be much richer yes
that's absolutely true and that trend
that chart there that last one you
showed of silk row gold demand and
global production of gold that's
obviously not a sustainable trend so
something is going to have to give
sooner or later so it's clear that China
and many other Asian countries continue
to see a crucial need to own gold so so
don't worry about the gold price China's
got your back yeah at the same time the
West is getting rid of their their dis
hoarding their gold just when they
should be buying they're selling right
right and that's going to have
ramifications too so thanks for watching
everyone keep up with us and all the
news at goldsilver.com don't forget we
have a price match guarantee fast
shipping and a special insiders program
exclusively with mike maloney
thanks for liking the video and
subscribing and we'll see you next time
thanks again Mike
Jeff talk with you later