by Jeff Nielson, Bullion Bulls:
For many years; China had never purchased any gold on the open market. However, starting last July, China has now made large, open-market purchases of gold EVERY MONTH. I was the first commentator to realize the significance of its first purchase, and the first commentator to identify this as “a gold war.”
China is continuing to dump its (worthless) USD holdings, primarily in the form of its ultra-fraudulent Treasuries bonds. And it is using the proceeds from the sale of this GROSSLY OVERVALUED paper in order to buy GROSSLY UNDERVALUED gold. It is not only a very threatening strategy (to the One Bank), it is an extremely efficient strategy for China.
It is dumping its U.S. paper at (literally) top-of-the-market prices, and it is buying gold at (literally) bottom-of-the-market prices. It doesn’t get any better than that. Indeed, another motive for China to begin its open-market purchases is that it gets even better value for its paper by using its (pumped up) USD holdings to buy gold internationally (out of the banksters’ warehouses) than by buying gold from its domestic miners, using renminbi.
The gold that China is buying on the open market is significantly “cheaper”, because the USD has been manipulated to such an utterly absurd exchange rate. Like any smart chess-player; China is USING the moves of its opponent against themselves.
Here’s a “2016 prediction”: China will CONTINUE buying gold on the open market, every month, unless/until one of two things happen:
1) There is a formal default in the One Bank’s paper-called-gold market; or,
2) The USD acquires its true value: ZERO.
The Gold War will not only continue, it is likely to heat-up…
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