Sunday, September 4, 2011

Beijing Embassy: EUR/US Suppressing Gold

Regular readers will know that I am not much for diving into the conspiratorial Gold stories. My opinion is there are enough factual reasons to be buying/holding Gold at this point to warrant sticking with hard evidence rather than relying on unprovable stories from unreliable precious metal market commentators.
The amount of misinformation and rubbish that circulates as precious metals 'news' is atrocious.
Anyone remember in late 2009 when we were told 25% premiums were being paid for those seeking physical Gold delivery to settle in cash instead?
Remember when the LBMA made a slight change to their website causing a popular commentator to suggest they were days away from implosion and hiding the data?
Remember when we were standing for delivery which was going to cause the COMEX to default in December and then again in March?
Remember when every ounce of Silver purchased was another step to toppling the much despised JP Morgan?
Fantastical stories are circulated to encourage investors to get involved personally & emotionally with their investment in metals, which is exactly what you shouldn't be doing!
The above a clip from a post I made a month back (LINK).

However I found it interesting that in a Beijing cable recently released (as noted by ZeroHedge) it was written that "The U.S. and Europe have always suppressed the rising price of gold", now it wasn't directly being suggested by the Beijing Embassy, it looked more of an FYI as to how Chinese media was reacting to recent events. The Chinese Gold reserve upgrade was announced April 24th and the cable was created April 28th (2009). Still though very interesting that they would include this particular opinion in a cable to the US.

Here is a copy of the entire section of the cable:
"China increases its gold reserves in order to kill two birds with one stone"
The China Radio International sponsored newspaper World News Journal (Shijie Xinwenbao)(04/28): "According to China's National Foreign Exchanges Administration China 's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB." Cable

No doubt there will be sites that take this cable and try to suggest it is proof of the US/Europe suppressing the price of Gold, trying to turn the cable into more than it is... it would be best to ignore those making such conclusions.


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  1. Good fact finding bb, I appreciate your regular doses of reality.

    The hysteria has begun on other pm blogs.......
    More Pseudo-facts for the nut jobs.


  2. Aye true that, but ... there is always if ... :)

    You dont have to be a genius to figure out that cheaper gold is better for us$, while obviously noone will officially admit that they are suppressing the price. You never know whats going on behind curtains.

    Other than that, yeah maybe not hysteria yet but we are awfully close.


    PS Those two previous anonymous comments was me :)

  3. BB,
    regarding your previous post, yet great to see $HUI break out, and GDX too. GDXJ still lagging, though.

    Is there an Australian-listed equivalent to GDX (or GDXJ). I have not seen it, but just wanted to check.

    If not, in order to create a synthetic GDX for Australia I suppose one could invest in say, the top 5 or 10 Aussie gold stocks proportionally by mkt cap. Brokerage will obviously be more.

    Is there a resource that shows the ranking by market cap of Aussie gold (and silver) stocks?

  4. I do see a list on GoldOz website:

  5. Yes GoldOz shows some of them, but honestly TurdleGG I would highly recommend the Gold Nerds service for that sort of research (sort by market cap or other factors):

    Well worth their small fee for the benefit you can get out of it. Huge time saver!

  6. Thanks BB. Will look at the nerds