by Chris Powell, GATA:
Dear Friend of GATA and Gold:
In analysis posted tonight at GATA Chairman Bill Murphy’s LeMetropoleCafe.com, Toronto securities broker Mike Ballanger elaborates on a point made by a number of GATA’s friends since the big gold smash of April 2013 — friends like Koos Jansen, Jim Rickards, and Andrew Maguire, among others. That is, China almost certainly is very active keeping gold futures prices down so that it might acquire more real metal as it reduces the U.S. dollar component of its foreign-exchange reserves.
Your secretary/treasurer put it this way in November 2013:”
“China is the gold market as well as the U.S. government bond market and any market China wants to be — China’s foreign exchange surplus is that huge. If China had not been at least complicit in the April smashdown of gold, it would not have occurred — China would have bought the dip at a much higher level. So much for the ‘Chinese put’ many gold investors thought they enjoyed.
Please follow SGT Report on Twitter & help share the message.