The Chinese Mean To Control The Global Gold Market

Get ready for the Pan Asian Gold Exchange, scheduled to open in June, 2012 in Kunming City, Yunman Province– the gateway to all of Southeast Asia. This is serious, as the Pan Asian Gold Exchange is a part of China’s five year plan– which means it is part of China’s strategy for dominance in global financial markets and the global economy.

Pan Asian will allow Chinese to speculate in gold futures contracts or buy physical gold through an account with a bank or broker. All 320 million customers of the giant Agricultural Bank of China will. simply be able to use their Renminbi, the Chinese currency, from their bank accounts to trade gold. Sounds bloody dangerous doesn’t it.

It means the spot market in gold could be headed for China– and away from London’s Metals Exchange or the Comex in New York. I’d like to know who is going to oversee and regulate all this action. For example, when the Comex raises margin requirements to dampen speculative fervor– will China bew governed by that? I doubt it very much.

In June you’ll be able to buy spot gold or futures contracts in China. It also means that the Chinese currency- not dollars– will for the first time become the ruling currency used in one of the major speculative commodities of our age. All eyes will be on the influence of the gold trade in China rather than New York, London, Switzerland or South Africa.

Another reason for registering the reality of gold as a trading vehicle, an investment for households, central banks, hedge funds, endowments. Another bullish force behind the powering of gold prices higher.

No wonder George Soros has bought back some or all of the gold position he sold around $1600 an ounce.
As shown in this WikiLeaks Department of State cable release, China has plans for the reserve currencies of the world including the euro and the U.S. dollar and for the use of gold as a substitute:


If this is indeed the case, China will most likely be looking at the recent gold price decline as a buying opportunity.


Why the heck is everybody afraid of China?

No, they’re not going to corner the market for gold, nor are they going to control the market that trades gold.

No, they don’t have an aircraft carrier that worth a crap.

No, they don’t have a fighter aircraft that’s going to shoot down our F/A 18′s.

No, their currency won’t be used as a reserve currency for another century or two.

They’re on the verge of blowing up! They are at the very early stages of popping a substantial home-grown credit/real estate bubble. The recovery will take decades.

I don’t find it dangerous at all. If the US and UK central banks and their operative massive bullion dealing, derivatives wielding bullion banks and their cozy ties with the London and US gold and silver futures exchanges, gold and silver would be trading at values that reflect their relative historical value as the only real money that has withstood the demise of every single fiat currency ever created and will survive the current ponzie currency scheme in which the only thing backing the currencies are unrepayable debt.

If one uses real inflationary numbers, like those from Shadowstats rather than those from the department of highly manipulated and spun statistics, gold should be trading at $10,000 an ounce and silver at $400 in my opinion.

Unfortunately for just about everyone except for the big speculative shorts, it seems like the Chinese liquidity problem, the inability for the EU to figure to gain political cohesion and actually agree on a means to monetize their own repayable debt and the US inability to have any type of political cooperation whatsoever and the increasing dissent within the US Federal Reserve on how to further monetize the US’s unrepayble debt, it looks like everything, gold an silver included (short term) will be liquidated and a Lehman like stock market, commodity and other equities are about to reflect a massive reading on global GDP contraction in my opinion.

I’m selling any physical gold or silver but I am selling my gold and silver ETFs and shorting this market for the time being. When the Pan Asian Gold Exchange comes fully on line (I believe it is already on line with 100 oz contracts now), I will be looking to use it as my primary exchange for gold and silver as I am so sick of the GATA like manipulations that have characterized the Central Bank metaling(intende mis-spelling) in these markets all these years.