PMs: wikileaks China cable lays it all out in a few sentences

[pmbug]

Everything people have been discussing about the death of the dollar's world reserve currency status, PM price suppression, PAGE, etc. revealed in a short paragraph:

3. CHINA'S GOLD RESERVES

"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."

http://cables.mrkva.eu/cable.php?id=204405

 

[WilliamC]

There was a post here recently about China opening a Pan-Asian bullion bank which would be independent of COMEX.

If they make it 'easy' to take physical delivery and incorporate bullion into their traditional banking services then the Chinese middle class could suddenly have immediate access to buying PM's as easily as they use an ATM.

 

[Seraphim]

That is essentially the goal of the Chinese. State owned media is pushing the Chinese middle class (300 million of them, the entire US pop. put together) to buy gold EVERY PAY CHECK. They are doing it - all the time. They know gold is money. They know they hold the largest portion of world finance in their hands and they plan on using that leverage to their benefit (as they should).

There was a post here recently about China opening a Pan-Asian bullion bank which would be independent of COMEX.

If they make it 'easy' to take physical delivery and incorporate bullion into their traditional banking services then the Chinese middle class could suddenly have immediate access to buying PM's as easily as they use an ATM.