The China Gold Association Confirms Koos' Numbers

Thu, Oct 23, 2014 - 11:00am

Now even the China Gold Association is openly admitting that total Chinese wholesale demand was 2,200 metric tonnes in 2013. Of course, the only "analysis" that seems to matter creeps from the bowels of The World Gold Council, which continues to understate Chines demand fully by half. Why does the WGC persist with their imaginary numbers? Could an agenda be involved?

Again, all of Koos' great work now appears at the Bullion Star website: and you can find his original link here:

China Gold Association: 2013 Gold Demand 2199t

by, Koos Jansen

We now have official confirmation from the China Gold Association (CGA) that Chinese wholesale gold demand in 2013 reached 2,200 tonnes, in contrast to what all Western consultancy firms and news outlets have been reporting. On September 11 the China Gold Yearbook 2014 (that covers the financial year 2013) was released by the CGA on the China Gold Congress in Beijing.

As you can read below in the translation from a Chinese press release about the China Gold Yearbook 2014, the CGA states Chinese wholesale gold demand in 2013 was 2,199 tonnes; bullion import 1507 tonnes, doré import from overseas mines 17 tonnes and domestically mined gold accounted for 428 tonnes. (scrap supply must have been 247 tonnes)

Why the Western media don’t report on these numbers is “a mystery”. Remember the 1,500 tonnes net imported in 2013 by China exclude PBOC purchases!

China Gold Congress in Beijing 2014

Impression China Gold Congress Beijing 2014.

This was the setup of the China Gold Congress Beijing 2014.

  • Hosted by: the China Gold Association (CGA) and the World Gold Council (WGC).
  • Supporters: the People’s Bank Of China (PBOC), and more.
  • Strategy Partners: the Shanghai Gold Exchange (SGE), the Shanghai Futures Exchange (SHFE), Industrial and Commercial Bank of China (ICBC).
  • Media partners: Reuters, and more.
  • Cooperate Partners: CPM Group, and more.
  • At 16:00 GMT+8, on September 11, 2014, the China Gold Yearbook 2014 was presented on stage by the CGA.


    Too bad the Western media didn’t catch the content of this report, luckily the Chinese press did notice it.

    The information the CGA publishes in English about Chinese non-government gold demand, 1,176 tonnes in 2013, severely understates true non-government gold demand, 2,199 tonnes in 2013, which is only disclosed by the CGA in the China Gold Yearbook 2014 exclusively published in Mandarin hard copies.

    Cover China Gold Yearbook 2014 (yes I own a copy)

    Cover China Gold Yearbook 2014 (yes, I own a hard copy)

    This data is not a secret, yet the Chinese have been trying to hide it as much as possible and it looks like either they’re being helped by Western institutions, or these institutions are ignorant.

    All Western institutions and press that attended the China Gold Congress have Chinese employees who can perfectly read the China Gold Yearbook 2014. Like I said, why these institutions don’t publish true non-government Chinese gold demand is “a mystery”. I can tell you this though, 99.99 % of the global financial industry uses the Chinese demand numbers from the WGC, which state 2013 demand was 1066 tonnes. From an investment point of view this can give you an advantage.

    As always you have to make up your own mind, in this case on Chinese gold demand. Who do you believe? The WGC? Or the China Gold Yearbook 2014 that states total demand was 2,199 tonnes – data that has been confirmed numerous times by the SGE (as I’ve written here and here)?

    Every institution or analyst around the world might use a different metric to measure Chinese gold demand, for me the most import facts that stand out are: China net imported more than 1500 tonnes of gold in 2013, mostly 1 Kg bars which we can trace back to Switzerland and the UK, domestic mining production accounted for 428 tonnes, which didn’t leave the mainland as bullion export is prohibited, and all this gold met non-government demand. Additionally, it’s very likely the PBOC imported another few hundred tonnes on top of the 1500 tonnes. Consider this, from The Death Of Money by James Rickards:

    A senior manager of G4S, one of the world’s leading secure logistics firms, recently revealed to a gold industry executive that he had personally transported gold into China by land through central Asian mountain passes at the head of a column of People’s Liberation Army tanks and armored transport vehicles. This gold was in the form of the 400-ounce “good delivery” bars favored by central banks rather than the smaller one-kilo bars imported through regular channels and favored by retail investors.

    Now please read the translation by my friend Soh Tiong Hum of the Chinese press release on the China Gold Yearbook 2014:

    China Becomes World’s Largest Gold Importer At 1507 MT In 2013

    September 11 , 2014

    Source: China News Network

    China News Network, September 11 (Reporter Liu Yuying) – Chinese Gold Yearbook 2014 released by China Gold Association on September 11 shows that in 2013, Chinese gold import grew 197.98%, to 1506.5 tonnes, thereby becoming the world’s largest gold importer. 

    According to the Almanac, 2013 continues 11 years of growth in China’s gold demand with substantial increase in market volume by 92.65 %. Breaking gold demand of 2012 above 1,000 tonnes, gold demand reached 2198.84 tonnes in 2013, of which consumption increased by 41.36%, consumption volume exceeded 1,000 tons, surpassing India to become the world’s largest gold consumer. Based on this number, net investment is deduced to be 1022.44 tonnes, a substantial increase of 230.68 %.

    Over the same period, China’s gold production was 445.4 tonnes. 428.16 tonnes came from domestic sources while 17.25 tonnes came from offshore. 

    The 2014 almanac says that the increase in Chinese gold demand in 2013 was mainly investment demand, 80% of growth in gold demand came from growth in investment demand.

    It is understood that China’s gold supply and demand balance is mainly met through increased imports.

    One form of supply is from import of offshore raw materials and finished domestically; the other is direct import of finished ingots.

    Commentary in the Yearbook claimed that China’s 2013 gold import nearly doubling is a very big change that has never happened since the founding of China. The reason why China became a destination for foreign gold was mainly because of profit drivers, because there is a premium for RMB gold it is profitable to bring gold to China. As Chinese dependence on foreign gold resources increases, this reality also requires the gold market to open its doors to outsiders.

    Koos Jansen

    About the Author

    turd [at] tfmetalsreport [dot] com ()


    Oct 23, 2014 - 11:05am

    Pining for the Fjords!

    Pining! You made it onto the cover of the Economist!!

    I am very pleased that finally we're getting "official" numbers that tell us (and Koos) that we're not completely coocoo!

    I always like to picture the central banks' gold stacks (that they're supposed to hold for the sovereigns) getting smaller and smaller every time I read how much gold China, Russia and India keep importing.

    Bongo Jim
    Oct 23, 2014 - 11:05am


    2nd, but only because I'm a slow reader.

    Colonel Angus
    Oct 23, 2014 - 11:18am

    My demand is 220 tonnes too

    I just lack the funds to fulfill said demand.

    thurd aye
    Oct 23, 2014 - 11:58am

    Go ***** and multiply

    your PMs shall increase.

    Oct 23, 2014 - 1:06pm

    Oil Tankers to China Jump to Nine-Month High Amid Crude Rout

    The number of supertankers sailing toward China’s ports surged to a nine-month high amid speculation an oil-price slump is encouraging the world’s second-biggest crude importer to accelerate purchases.

    There are 80 very large crude carriers, the industry’s biggest ships, sailing toward the Asian country’s ports, according to IHS Fairplay vessel-tracking signals compiled by Bloomberg at about 10 a.m. today. That’s the highest since Jan. 3. Average shipments are 2 million barrels.

    Brent crude, the global benchmark, plunged to a four-year low yesterday amid speculation Saudi Arabia, Kuwait and other nations in the Organization of Petroleum Exporting Countries won’t curb production. The slump is likely encouraging buying to fill China’s strategic stocks, according to Energy Aspects Ltd., a London-based consultant.

    “There’s a lot of bargain hunting going on,” Richard Mallinson, an analyst at Energy Aspects, said by phone. “Whilst prices are low we think there’ll be buying for Strategic Petroleum Reserve filling and also just trying to capture these discounted crudes.”

    Brent crude pared its slump today after Goldman Sachs Group Inc. said there was no glut of oil and that prices have plunged too far. December contracts gained 0.6 percent $86.32 a barrel at 1:40 p.m. today in New York. WTI, the U.S. benchmark, was up 0.6 percent at $83.17.

    So maybe it isn't just the precious metals whose price the western commodity markets are depressing at China's command.

    Oct 23, 2014 - 1:17pm

    Re: Chinese crude demand

    As they say: "the cure for low prices is low prices" or something like that. Unless markets are manipulated which they are. (OPEC?) But the manipulators are not omniscient or invincible and as Turd says economic Mother Nature will re-assert. 

    transplanted baby
    Oct 23, 2014 - 1:25pm

    what happens

    when Chinese demand gold (phys) and can't get it anymore? Whose gonna be the dead parrot then?

    Oct 23, 2014 - 1:54pm

    Conference Evokes Thoughts of Violence Against Wallstreet

    The no shows must have been doing God's work.

    New York Fed’s Conference Evokes Thoughts of Violence Against Wall Street

    By Pam Martens and Russ Martens: October 23, 2014

    Occupy Wall Street Protesters Outside the New York Fed, September 17, 2012

    Occupy Wall Street Protesters Outside the New York Fed, September 17, 2012

    What the New York Fed attempted to pull off this past Monday with its full-day conference for the execs of wayward Wall Street banks was a public relations stunt to switch the national debate from its culture to Wall Street’s culture. Styled as a “Workshop on Reforming Culture and Behavior in the Financial Services Industry,” the event came less than a month after ProPublica and public radio’s “This American Life” releasedinternal tape recordings made by a former New York Fed bank examiner, Carmen Segarra, revealing a regulator with no bark or bite.

    ProPublica’s Jake Bernstein wrote that the tapes and a confidential report by an outside consultant demonstrated the New York Fed’s “history of deference to banks.”

    But there is far more to this story. Wall Street banking executives, who elect two-thirds of the Board of Directors of the New York Fed and have frequently served on its Board, have structured the institution to be its sycophant. Consider the fact that Jamie Dimon, CEO of JPMorgan Chase, sat on the Board of the New York Fed from 2007 through 2012 as the regulator failed to follow through on three separate staff recommendations that JPMorgan’s Chief Investment Office undergo a thorough investigation, as reported this week by the Federal Reserve System’s Inspector General.

    JPMorgan’s Chief Investment Office in 2012 finally owned up to losing $6.2 billion of bank depositors’ money in wild bets on exotic derivatives in London.

    A Wall Street regulator, like the New York Fed, which has staff positions called “relationship managers” that are considered senior to, and can bully and intimidate, their bank examiner colleagues, is in no position to be lecturing Wall Street on its culture. Indeed, the culture on Wall Street of “it’s legal if you can get away with it,” grew out of its cozy, crony relationships with its regulators like the New York Fed, an enshrinedrevolving door at the SEC, self-regulatory bodies delivering hand slaps and its own private justice system to keep its secrets shielded from the public’s view.

    To suggest that a one-day conference and a few speeches are going to make a dent in a structure intentionally created to deliver heads we win, tails you lose on behalf of Wall Street interests is deeply insulting – especially coming from the New York Fed, the target of future Senate hearings on its own culture.

    The seriousness with which disciplinary lectures by the New York Fed are taken by the big Wall Street players is evidenced by those who snubbed Monday’s conference – namely, the CEOs of the serial miscreants. Not in attendance, according to the participant list released by the New York Fed were: JPMorgan CEO, Jamie Dimon; Citigroup CEO Michael Corbat; and Goldman Sachs CEO Lloyd Blankfein.

    William Dudley, President of the New York Fed, whose wife receives $190,000 a year in deferred compensation from JPMorgan where she was previously employed as a Vice President, sized up the loathsome regard that Wall Street now holds in the public mind as follows:

    “Since 2008, fines imposed on the nation’s largest banks have far exceeded $100 billion. The pattern of bad behavior did not end with the financial crisis, but continued despite the considerable public sector intervention that was necessary to stabilize the financial system. As a consequence, the financial industry has largely lost the public trust. To illustrate, a 2012 Harris poll found that 42 percent of people responded either ‘somewhat’ or ‘a lot’ to the statement that Wall Street ‘harms the country’; furthermore, 68 percent disagreed with the statement: ‘In general, people on Wall Street are as honest and moral as other people.’ ”

    Further cementing that public distrust, the media was barred from attending Monday’s conference at the New York Fed. Press members who nonetheless reported on the event evoked a recurring theme of violent acts to deal with incorrigible actors.

    Aaron Elstein at Crain’s New York used an analogy comparing the Fed to the 15thcentury Vatican which dealt with a problem it was having by calling a big conference and burning alive the outlier and casting his remains into the Rhine.

    This thought about the conference constituted the first paragraph of Bartlett Naylor’sreporting at Huffington Post: “The Roman army responded to desertion by randomly executing a tenth of those soldiers remaining. They called it decimation, derived from the word ‘tenth.’ This discipline, of course, prompted all soldiers to police against desertion so as to save their own skins.”

    Jon Hilsenrath at the Wall Street Journal was thinking along similar lines. Hilsenrath reflected on the book, Manias, Panics, and Crashes, which carries a chapter by University of Chicago Professor Robert Aliber in its revised sixth edition. Hilsenrath quotes as follows from the book: “At the time of the South Sea Bubble, (Lord) Molesworth, then a member of the (British) House of Commons, suggested that parliament should declare the directors of the South Sea Company guilty of parricide and subject them to the ancient Roman punishment of that transgression – to be sewn into sacks, each with a monkey and a snake, and drowned.”

    Business media is not the only source pondering violence against Wall Street scoundrels. This summer, venture capitalist, Nick Hanauer, worried aloud to his fellow plutocrats in Politico Magazine about when public anger might spill over into pitchforks. Hanauer writes:

    “What everyone wants to believe is that when things reach a tipping point and go from being merely crappy for the masses to dangerous and socially destabilizing, that we’re somehow going to know about that shift ahead of time. Any student of history knows that’s not the way it happens. Revolutions, like bankruptcies, come gradually, and then suddenly. One day, somebody sets himself on fire, then thousands of people are in the streets, and before you know it, the country is burning. And then there’s no time for us to get to the airport and jump on our Gulfstream Vs and fly to New Zealand. That’s the way it always happens. If inequality keeps rising as it has been, eventually it will happen. We will not be able to predict when, and it will be terrible—for everybody. But especially for us.”

    There are currently a stunning 8,477 comments under the article. The following two, listed together, capture the current divide between Main Street and Wall Street:

    Betsarama: “Thank you! Exactly. My father had a saying with regard to how much he charged and what his company earned, and that was ‘Enough.’ People loved him for his intelligence, simplicity and hard work. That’s American. Being filthy stinking rich — what is there to admire?”

    Crapulous Mass responds: “One of the beauties to being filthy stinking rich is really not having to care what others think of you.”

    This might well explain why Dimon, Corbat and Blankfein snubbed the lectures on Monday.

    Oct 23, 2014 - 2:12pm

    9th maybe

    Are zinc members allowed to post in the top ten in free posts? donno

    With Ag so low, just to frugal right now. :(

    The kids are getting coal in their stockings on xmas, I will tell them how important it is to invest in energy. frown

    Oct 23, 2014 - 2:23pm

    Sounds Like Appropriate Banker Punishment

    Jon Hilsenrath at the Wall Street Journal was thinking along similar lines. Hilsenrath reflected on the book, Manias, Panics, and Crashes, which carries a chapter by University of Chicago Professor Robert Aliber in its revised sixth edition. Hilsenrath quotes as follows from the book: “At the time of the South Sea Bubble, (Lord) Molesworth, then a member of the (British) House of Commons, suggested that parliament should declare the directors of the South Sea Company guilty of parricide and subject them to the ancient Roman punishment of that transgressionto be sewn into sacks, each with a monkey and a snake, and drowned.” LOL

    Oct 23, 2014 - 3:43pm

    Deagel reports U.S. population will be 69 million...

    in just 11 years. So, does the big drop happen this year, or what year between now and then? Why?

    Well, they give their sources:

    "Sources: US Department of Defense, Department of State, CIA, World Bank and European Union."

    Maybe each and every one of us should write their congresscritters, and ask them what the hell is coming that kills almost 8 out of every 10 of us? Of course, the CIA won't answer to anybody--JFK can attest to that, God rest his soul.

    One commenter posted this youtube vid re: black ops/Yellowstone caldera

    Yellowstone Secret Eruption Program
    Oct 23, 2014 - 4:05pm

    AMZN huge loss

    They can not let the market imagine that there is just one single POMO left. Fed dogs out of the wood in 3.2.1....

    The Doc
    Oct 23, 2014 - 4:12pm

    Jim Willie: Shanghai Shock to

    Jim Willie: Shanghai Shock to Shatter the Gold Market!

    China gold

    The pattern of central bank covering the debt is clear. The lesson is that central banks can apply paper patches to the failed banks, and buy more time, then repeat the process on the next failed bank event. No limit to their bank patches seems to be in force. The banker cabal can continue endlessly since their patches are based on paper solutions, fiat paper money spew, and they control the paper output. They are the masters of the House of Paper.
    The paper mache solutions can continue in a seemingly endless manner, but not in the Gold market.
    The intervention and suppression in the Gold market is finite. It requires Gold bullion, the physical ingot bars, in order to execute the perpetuated interference and alteration to this financial niche market.
    The manipulation is finite, and it is coming to an end.
    When the Shanghai shock comes, all the Paper Gold structures will fall, all the FOREX derivatives will collapse, all the control rooms will go into panic mode.

    Oct 23, 2014 - 4:23pm


    That Deagel site is an individuals' viewpoint, they're not government figures. Nowhere that I can see on that site is there a link to gov't stats that support the figure of 69 million US population by 2025.

    It's pure speculation (fearmongering perhaps) by an individual: 'Edwin Deagle'.

    Check out his youtube page - linked to at the bottom of the page: . A bunch of videos about military vehicles, planes and helicopters.

    Nothing on the "About" page.

    Here's a lookup on the domain name:

    Registrant Name: EDWIN DEAGLE
    Registrant Organization: DEAGLE WEB SOLUTIONS
    Registrant Street: 660 LEGACY LAKES WAY
    Registrant City: ABERDEEN
    Registrant State/Province: NC
    Registrant Postal Code: 28315
    Registrant Country: US
    Registrant Phone: +1.9104011750
    Registrant Phone Ext:
    Registrant Fax: +1.9104011750
    Registrant Fax Ext:
    Registrant Email: Email Masking Image[at]DEAGLE[dot]COM
    Registry Admin ID:
    Admin Name: EDWIN DEAGLE
    Admin Organization: DEAGLE WEB SOLUTIONS
    Admin Street: 660 LEGACY LAKES WAY
    Admin City: ABERDEEN
    Admin State/Province: NC
    Admin Postal Code: 28315
    Admin Country: US
    Admin Phone: +1.9104011750
    Admin Phone Ext:
    Admin Fax: +1.9104011750

    Pure speculation by an individual - the sources for the figures are not "US Department of Defense, Department of State, CIA, World Bank and European Union". They appear to be nothing other than his own imagined forecast.

    Just pointing this out. There's a lot of BS out there purporting to be official gov't news and info.

    Oct 23, 2014 - 4:35pm

    The most disgusting thing of all

    was watching the MSM headlines last fall which were more or less: "Gold prices collapse as Chinese demand wanes according to WGC" And now of course we will see minor mention of the new numbers in the press, except perhaps for some big headlines about how demand has (maybe) fallen from last year or if demand is not falling how its expected to fall from the new numbers. That the new numbers are new will never be mentioned and the WGC will lose no credibility and the bloggers will gain none. Efficient market theory may be the great lie of our age.

    Oct 23, 2014 - 4:56pm

    oops, typo... is owned by this chap, "Gus Deagle" - not "Edwin Deagel" which I first ran a lookup on as ''. butter-fingers typo.

    Nevertheless, nothing has fundamentally changed, he's an individual:

    Domain Name: DEAGEL.COM
    Registry Registrant ID:
    Registrant Name: Gas Deagel
    Registrant Organization: Gas Deagel
    Registrant Street: 108, Gran via
    Registrant City: Roses
    Registrant State/Province: NA
    Registrant Postal Code: 17480
    Registrant Country: ES
    Registrant Phone: +34.972255221
    Registrant Phone Ext:
    Registrant Fax:
    Registrant Fax Ext:
    Registrant Email:
    Registry Admin ID:
    Admin Name: Gas Deagel
    Admin Organization: Gas Deagel
    Admin Street: 108, Gran via
    Admin City: Roses
    Admin State/Province: NA
    Admin Postal Code: 17480
    Admin Country: ES
    Admin Phone: +34.972255221
    Admin Phone Ext:
    Admin Fax:
    Admin Fax Ext:
    Admin Email:

    He appears to be in Spain and uses a hotmail account for the registrant and admin e-mail.

    Looks to me that he wants his fifteen minutes of fame wink.

    Oct 23, 2014 - 5:24pm

    O.T. Partial Eclipse

    Live from Griffith Observatory in Los Angeles...

    Maximun 34% @ 3:28 Pacific Time

    Any "Astrological" speculation?

    Oct 23, 2014 - 6:04pm

    I cannot find this online and

    I cannot find this online and wikipedia (i know it's not a trusted source) says this:

     United States 8,133.572%2

     Germany 3,384.268%3

    International Monetary Fund logo.svg International Monetary Fund 2,814.0N.A.4

     Italy 2,451.867%5

     France 2,435.465%6

     Russia 1,094.710%7

     China 1,054.11%8

    Switzerland 1,040.08%9

     Japan 765.23%10

     Netherlands 612.554%11

     India 557.77%

    Oct 23, 2014 - 6:04pm


    EVERYONE quotes the WGC as gospel but, as Koos points out, the WGC appears to be deliberately underestimating Chinese demand by half!

    Oct 23, 2014 - 6:05pm

    C Powell: The crucial questions financial journalism won't ask

    Chris Powell: The crucial questions financial journalism won't ask and central banks won't answer

    Submitted by cpowell on 01:26PM ET Thursday, October 23, 2014. Section: Daily Dispatches
    Remarks by Chris Powell, Secretary/Treasurer
    Gold Anti-Trust Action Committee Inc.
    New Orleans Investment Conference
    Hilton New Orleans Riverside Hotel
    New Orleans, Louisiana
    Thursday, October 23, 2014

    For many years this conference has bravely invited GATA Chairman Bill Murphy and me to speak here about the evidence of manipulation of the gold market, particularly manipulation undertaken directly or indirectly by central banks, and every year there has been new documentation to report. This documentation has been compiled at GATA's Internet site,, whose home page you can see here --

    -- with the "Documentation" section noted at the top left, along with a section called "The Basics," which summarizes the documentation as well as the purposes and history of central bank policy of suppressing the price of gold, gold being a currency that competes with government currencies.

    The last two months have brought confirmation that, as we long have suspected, GATA has outlined only a small part of the surreptitious market manipulation being undertaken by central banks -- that this manipulation is actually comprehensive, that it covers nearly every major market in the world.

    This confirmation is largely the work of Eric Scott Hunsader, founder of the market data and research company Nanex in Winnetka, Illinois, who publicized, through the Zero Hedge Internet site, documents recently filed with the U.S. government, two of them with the Commodity Futures Trading Commission and one with the Securities and Exchange Commission.

    The first document is a letter to the CFTC, dated January 29 this year, from CME Group, the operator of the major futures exchanges in the United States, and signed by CME Group's managing director and chief regulatory counsel, Christopher Bowen:

    The letter notifies the CFTC of changes to CME Group's discount trading program for central banks. That is, the letter reveals that central banks are getting discounts for trading all futures on CME Group's exchanges, including the New York Commodity Exchange, the major mechanism for "price discovery" in the monetary metals.

    The CME Group letter argues that letting central banks trade in futures is beneficial because it adds "liquidity" to the markets. But of course "liquidity" here might as well mean the ocean. Anyone trading against the ocean will drown.

    The second document is another letter from CME Group's Bowen to the CFTC, dated August 28 this year, disclosing that CME Group is enacting rules against certain trading practices that are considered abusive and unfair, specifically "spoofing" and "quote stuffing," the abrupt placing and withdrawal of huge volumes of phony orders to mislead traders about prices:

    The letter's implication is that such manipulative trading practices have been common on CME Group exchanges.

    The third document is the CME Group's annual report to the Securities and Exchange Commission, its 10-k report:

    CME Group's 10-k report reveals on Page 9: "Our customer base includes professional traders, financial institutions, institutional and individual investors, major corporations, manufacturers, producers, governments, and central banks."

    That central banks and governments are trading both surreptitiously and comprehensively in U.S. futures markets is a transformative development. Since central banks can create and deploy infinite money, this trading means that there are probably no markets anymore in anything, mainly just government interventions. It means that democratic capitalism has been quietly overthrown by a totalitarian coup and that the world has lost the great engine of its economic and democratic progress, free markets -- without even being aware of the loss.

    And yet what has been disclosed by these documents filed by the CME Group is only what was asserted 14 years ago in an essay written by the British economist Peter Warburton, an essay he titled "The Debasement of World Currency: It Is Inflation But Not As We Know It":

    * * *

    "What we see at present," Warburton wrote, "is a battle between the central banks and the collapse of the financial system fought on two fronts.

    "On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur.

    "On the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities, or anything else that might be deemed an indicator of inherent value. Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value not only of the U.S. dollar but of all fiat currencies.

    "Equally, they seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets.

    "The central banks have found the battle on the second front much easier to fight than the first. Last November [November 2000] I estimated the size of the gross stock of global debt instruments at $90 trillion as of mid-2000. How much capital would it take to control the combined gold, oil, and commodity markets? Probably no more than $200 billion, using derivatives.

    "Moreover, it is not necessary for the central banks to fight the battle themselves, although central bank gold sales and gold leasing have certainly contributed to the cause. Most of the world's large investment banks have overtraded their capital so flagrantly that if the central banks were to lose the fight on the first front, the stock of the investment banks would be worthless.

    "Because their fate is intertwined with that of the central banks, investment banks are willing participants in the battle against rising gold, oil, and commodity prices."

    * * *

    That is, as the saying goes, the futures markets are not manipulated; the futures markets are the manipulation.

    As Warburton noted, if a commodity has a futures market, the price of that commodity likely is being manipulated, and probably suppressed, by surreptitious trading by central banks and their agents. As a result most market prices now are probably mere illusions, holograms created in large part in the trading rooms of central banks, like the trading room at the Federal Reserve Bank of New York.

    But overwhelming as the power to create and deploy infinite money surreptitiously through central banks is, it is not the decisive power of governments. No, the decisive power of governments is the power to stifle or intimidate news organizations. For if people are ever informed that a market is rigged, they won't participate in it and the rigging will lose its usefulness.

    For 15 years GATA has done a fair job documenting the manipulation of markets by central banks and their agents. But publicizing that manipulation has been part of GATA's work as well, and in that respect we have not succeeded much. We can get on television in Asia and Russia but we strain for the occasional citation by Western news organizations.

    We have sent the recent CME Group documents to most major financial news organizations and to many financial letter writers, and as far as we can determine, not one has posed any question about them to the authorities or written or broadcast anything about them.

    As with GATA's other documentation, no one disputes these documents either. They simply cannot be acknowledged. They give the game away.

    Maybe that will change on Saturday, when this conference will have the remarkable opportunity of questioning Alan Greenspan, who was chairman of the Federal Reserve for more than 17 years, from August 1987 to January 2006. If Greenspan is in a mood to be candid, we may learn a lot without having to interrogate him as a prosecutor would. If Greenspan is not in a mood to be candid, extracting anything useful from him will be tedious, requiring his interrogators to be very specific and to brandish documentation.

    Of course I suspect that Greenspan may not care to be candid. So let me suggest a few very specific and detailed questions for him.

    Question 1: Mr. Greenspan, in your testimony to Congress in July 1998, in which you urged Congress not to legislate regulation of derivatives --


    Oct 23, 2014 - 6:36pm

    Another typo Bollocks?

    Gas or Gus?

    Wow, so according to wiki, last year, China must have had minus 1400 tonnes of Gold to start with, so that with their 2013 addition, they get their new figures. Hmmmm not 100% sure that China was so bereft of gold prior to last year.

    Oct 23, 2014 - 6:37pm


    aaah f'kit.

    see, i was born with way too many fingers.

    one is enough. two or more and all hell breaks loose surprise.

    Oct 23, 2014 - 8:21pm


    As I have also previously opined, the WGC is clearly acting AGAINST the interests of the very thing it is SUPPOSED to be promoting for the common good of its members. That being the case, I continue to wonder WHY would any Gold producer, or indeed any Organisation with a genuine interest in Gold, pay good money to be a member of WGC? When the membership becomes reduced to only Investment Banks, the true "Nature of the beast" would become exposed for all to see?

    Oct 23, 2014 - 10:47pm

    China Offtake

    Kudos to Koos for doing his own research to conclude the very simple equation for Chinese domestic Gold demand way ahead of anyone else. The SGE offtake does NOT, of course, include PBOC reserve purchases because, now confirmed but again speculated by Koos for a long time because China wants to recycle its USD reserves into Gold, which it can only do offshore (Shanghai operates in RMB).

    His credit for this ground breaking work? Absolutely zero mention in the Financial comedy media and only GATA and a few other Sires (Obviously TFMR included) reference his work. In particular, WGC ignore his work, although now that the Chinese have published domestic demand figures in an official publication, it is difficult to see how WGC data can continue to deny the facts?

    Safety Dan
    Oct 24, 2014 - 12:19am

    Andrew McQuire's Appearance in Video

    If you want to see and hear him publicly disclose his thoughts and presentation, start at 25 min of this video.. He shows exactly what happens in the Comex gold market. Andy goes to Washington.. It ends about 31 min. 

    Video unavailable

    ​But there is much more:

    12 min: See how the US Government treats Odessy, a treasure hunter, for a picture.

    31 min: See Eric Sprott's hired investigation on the gold market - Where's the gold?

    36 min: US Government nationalized gold

    37 min: Jeffery Christian's thoughts

    38 min: Gold repatriation problems & successes

    43 min: John Embry's thoughts on Gold

    * this video was posted earlier.. Thank you.. 

    Safety Dan
    Oct 24, 2014 - 12:31am

    I maybe cynical in my views,

    I maybe cynical in my views, but the damn government and quasi government firms seem to be deliberately misguiding. 

    Just like the WGC as Turd quotes above, the SEC, the CFTC & our 'old buddy' departed Bart, AG office and his department, the IRS with hide and seek ex director Linda, a President that ignores laws but frees 5 POW for 1 Muslim and protects by Executive order, and now the many government departments dealing with medical issues, FDC, CDC.. We know the NSA, the CIA are selling info.. Holy Hell, what we have here is a 3rd world government running a 1st world country. 

    Off my soapbox and feeling much better now!! laugh

    Oct 24, 2014 - 1:18am

    1st world country?

    I may be even more cynical but...........

    Oct 24, 2014 - 5:05am

    He can no longer deny Gold demand

    See who else is at the meeting and presenting? Yes Jeffery Christian CME(need to wash my keyboard now).

    Spartacus Rex
    Oct 24, 2014 - 6:30am

    LOL! ancientmoney / Deagel U.S. Pop. Will Be 69 Million...

    FEWER! (ie LESS)

    Work on those comprehension skills a little morewink

    Cheers, S. Rex

    Oct 24, 2014 - 7:58am

    Spartacus Rex

    I am getting tired of you talking down on every single member of this community!

    You're making fun of Safety Dan and ancientmoney, saying that they have to work on their comprehension skills.

    How about YOU work on those comprehension skills and eat some humble pie while you're at it.

    They read the site correctly. The 69 million is the projected total population. If you don't believe me, go and check the other countries. For example, according to them, China will stay "stable" at 1.4 billion. According to how you want us to read that site, this would mean that China is going to double its population in 11 years.

    and if you "hover" your mouse pointer above the little red sign in front of the 69 million, it will show you "-78.2%"

    Become a gold member and subscribe to Turd's Vault


    Donate  Shop

    Get Your Subscriber Benefits

    Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

    Key Economic Events Week of 1/21

    1/22 10:00 ET Existing Home Sales
    1/24 9:45 ET Markit Manu and Svc PMI
    1/24 10:00 ET Leading Econ Indicators
    1/25 8:30 ET Durable Goods
    1/25 10:00 ET New Home Sales

    Key Economic Events Week of 1/14

    1/15 8:30 am ET Producer Price Index
    1/15 8:30 am ET Empire State Mfg. Index
    1/16 8:30 am ET Retail Sales
    1/16 8:30 am ET Import Price Index
    1/17 8:30 am ET Housing Starts
    1/17 8:30 am ET Philly Fed
    1/18 9:15 am ET Capacity Utilization and Ind. Prod.

    Key Economic Events Week of 1/7

    1/7 10:00 ET ISM Services Index
    1/7 10:00 ET Factory Orders
    1/9 2:00 ET December FOMC minutes 
    1/10 Speeches from CGP, Goons Bullard and Evans
    1/11 8:30 ET CPI

    Recent Comments