Sunday, February 13, 2011

Chinese Heavily Into Gold & Silver Markets

The contact out of London has updated King World News on the massive Asian buyers which have been accumulating both gold and silver. The London source stated, “What we’ve been talking about for the past few months, the Asians, particularly the Chinese buying staggering amounts of physical gold has just gone into the mainstream media. The Financial Times was months behind King World News in reporting this information.”

The London source continues:
“The Asians, particularly the Chinese, want physical gold and they want it tomorrow. So the Chinese have a new method. They are now planning to buy tremendous amounts of the ETF GLD. They will then tender the GLD shares for immediate delivery of the gold. This bypasses all of the rules of places such as the Comex limiting delivery. There is no limit as to how much you can buy from the ETF GLD.
Mainstream media and some pundits have been pointing to drawdowns in GLD and saying there is liquidation of tonnage and that it is bearish for gold. They are ignorant and don’t understand what is happening is large buyers are tendering shares for delivery, and this is extremely bullish for the gold market.
This gets around the delays, delivery problems and any form of limitation.
The Asian entities are essentially looking for ways to get hold of physical gold because they are having trouble procuring gold in large quantities.
Those short of gold have been trying for some time to cap the price of gold. As far as the price of gold, it has not yet taken off to the upside, but it is just a matter of time before the paper market is overwhelmed by these physical purchases. Keep in mind these paper games are allowing the Asians to buy at lower levels so they are not complaining. We have made our lows in both gold and silver and all dips should be bought going forward.”
When asked about silver the source responded, “There is no metal. Asia as you know has opened the market to the retail public and there are massive fresh new orders to buy both silver and gold coming out of Asia.
There is going to be pressure on the only source available to meet Comex demand. By the way, these sovereign sources through their buyers can also purchase shares in SLV and stand for delivery, and it is possible you may see that in the future. We will have to wait and see.”
The bottom line as King World News has been reporting is that the massive buying out of Asia will continue in the gold market. The Chinese Also have a huge appetite for silver which is an extremely tight market. It will be interesting to see how the paper markets trade in the next few months with the tremendous physical demand in both metals.

(SOC Editors~

China is buying staggering amounts of gold and silver. The strategy is to buy shares in ETFs (electronic transfer funds) and then demand physical delivery of what they buy. This could trigger the final explosion of bullion prices because there isn't enough gold or silver available if many people ask for what they bought. It is the same fractional-reserve scam used by banks but, this time, applied to bullion. When the demands for delivery threaten to ruin the speculators, government puppets will close the bullion markets – to protect the public, of course.)

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