China is in on gold price suppression too
Submitted by cpowell on Fri, 2012-03-02 17:47. Section: Daily
12:49p ET Friday, March 2, 2012
Dear Friend of GATA and Gold:
Andrew Maguire's disclosure via King World News today that the Pan
Asia Gold Exchange has been killed because of pressure brought in
China by a New York financial house --
-- signifies that as much as gold advocates have seen China as an
ally against the gold price suppression scheme, the Chinese
government is cooperating with price suppression insofar as it
serves the Chinese government's interests as well.
That is, while the Chinese government appears to be purchasing the
full output of the nation's gold mines, is buying up natural
resources around the world, and reducing its dollar-denominated
-- it is far from fully hedged against dollar devaluation. That
hedging may be best achieved by slow and steady acquisition of gold
and other natural resources rather than by moves that spike prices
one way or the other. And if China wants gold as badly as it seems
to, price spikes can only get in the way and engender competition
by drawing other investors to the monetary metal.
Thus China may put a certain rising floor under the gold price, but
a ceiling on top of it too.
Of course other governments and their central banks know what is
going on in the gold market and are not likely to leave China
without competition, and there is always the chance that this
competition will cause a conflict that will spike the price. But as
long as private investors -- from hedge funds to ordinary
investment houses to retail investors -- are satisfied that a
certificate with "gold" printed on it really is gold, and as long
as precious metals mining companies have no clue about the true
monetary nature of their product and refrain from the necessary
political and educational activism, the gold price suppression
scheme probably can go on forever.
For gold is simply power, political as well as economic, and no
government will surrender it easily.
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.