China Holds the Keys to the Gold Market

May 21, 2014

This article was written by Frank Holmes and published by Money Morning, he shares his views on why China holds the keys and why China is slowly diversifying away from the U.S. dollar.

Last year China's private sector demand for gold reached a record level of 1,132 tons and, according to the World Gold Council, the Asian nation could easily dominate the gold market again, as they predict demand growing 20% by 2017. China's love for the precious metal remains robust.

There are four main drivers behind the tremendous growth. A new middle class with more money to spend; jewelry is still the top demand driver; industrial demand is increasingly important; China is diversifying from the U.S. dollar.

Read the complete story by Frank Holmes.

All the Best,

Joseph F. Botelho One Gram at a Time

Joseph Botelho

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Why China will over take India as the world Leader with Gold from jfbmarketing

How Big Are China’s Real Gold Reserves?

November 20, 2013

Came across this article written by Lawrence Williams on a subject that l have had an interest and wrote a few articles on. China's accumulation of gold, and how they have been able to keep the world from understanding how much metric tons of gold they actually own.

China has been playing this game since 2009, with a straight face, and declaring the same amount of gold since 2009. How do they get away with all of this? Lawrence Williams reveals some of the strategists, China has been using rather effectively.

The key here for China is keeping gold prices down, for the simple reason they can accumulate more metric tons at a bargain. This makes perfect sense, buy low sell high, what we all aim at when investing. So keeping the true amount of how many metric tons they actually have, works wonders for this concept.

Lawrence Williams shares this article on Seeking Alpha

There is much speculation over the quantification of China's gold reserves. Are they only 1,054 metric tons as the official figures would have us believe? Or are they considerably higher as many gold analysts suggest? And what game is China playing if they are?

The Chinese impact on global demand is key to likely gold price performance in the months and years ahead and thus of major significance for the investor in gold bullion, ETFs and gold stocks. China is already almost certainly the world's largest consumer of gold this year and is likely to absorb at least 1,500 metric tons of the yellow metal purely through imports through Hong Kong plus its own gold output - it is currently the world's No. 1 producer with 2013 output estimated as likely to be in order of 430 metric tons by the China Gold Group.

The Complete article by Lawrence Williams 


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Joseph F. Botelho One Gram at a Time

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— Gary Vaynerchuk (@garyvee) November 15, 2013

Reasons why China keeps a low profile on how much gold they own.

August 16, 2013

China is playing this game like Bobby Fisher played his greatest match with chess; low key and every move had a reason with results. Then ..... bang; checkmate!

China’s accumulation of gold is shrewdly hidden and only speculated on the actual amount they have bought. The only real resource of information is the ones that Hong Kong and Singapore provides us with. Even those stats could actually be very ambiguous.

Why would China play any other way? The greater the audience; the more competition, you're creating a center of attention. Exactly what they would like to avoid; staying under the radar gun.

China understands that gold currently is undervalued. This is an absolute fact for the reasons they are accumulating gold at a petrifying rate, with a low profile of attention. Buying gold at under $1,200 - $1,300 an ounce, will be a bargain years down the road.

Why China will surpass India as the world leader of Bullion Gold in the world. They have a scheme, system that is structured to guide and direct them with every move and purchase they accumulate each and every day of the year.

They have the power and capital to achieve this feast, indulge and like carbon monoxide, there are silent killers in this progress of accumulating mass fortunate’s of bullion gold. See China understands numbers, they are an international language.

Think of this example, if China decides to dump just only 10 percent of their U.S. Treasury Holdings which works out to approximately $100 billion worth in exchange for gold.  Let’s say gold for this example, is at $1,000 an ounce, which would work out to approximately 2,840 metric tons of gold. This means they would own more than 1/3 of the U.S. official gold holdings.

Now that is what l call power! China would be able to dictate  the value of gold, once they announce how much of the global asset gold they have possession of. Now that should actually make you think!

To illustrate another example that could happen, who really knows when, within 90, 120 days or even six months down the road? The authenticity is that this will materialize where we will see gold at perhaps or if not greater than $4,000 per ounce along with sides kicks oil at around $350 - $400, silver at $80 - $100 and all other assets such as copper, corn, wheat and everything else also on the rise.

Hyperinflation is already here as we have all witnessed, whenever we buy, purchase or invests on anything, all you need to do is compare that item to what it was worth a year ago.

More related articles on this topic.

Will China overtake India as the world consumer of gold

Is China succeeding with their marketing gold plan?

This is how l teach my partners to become part of this asset!!

This is my "WHY" in life, why l do it!

The last comment is what will make you a leader and successful, it's really the hardest to figure out, all the best... it's the area only you can decide... why it is the hardest... 

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All the Best,

Joseph F. Botelho One Gram at a Time

Joseph Botelho

Follow @jfbmarketing

"Pay Yourself First Because the #Economy that Matters Most... is the One in Your Own #Home" https://t.co/wo7XWWjaFZ pic.twitter.com/VSVAtkJ6El

— Joseph Botelho (@jfbmarketing) January 19, 2016

Will China over take India as the world consumer of gold

August 13, 2013

China's activity with its consumption of gold in the first six months of this year increased and they should overtake India as world leaders in the use of gold, within a very short period.

They have consumed approximately 706 tons of gold in the first half of this year (2013) an increase of nearly 54 percent from a year ago.

If we review the consumption of gold for all of 2012, China will import approximately just over 832 tons for that whole year and just over 420 tons approximately at the same time last year, end of July 2012.

China took advantage of gold's biggest two-day fall in over 30 years when gold dropped under $1,200 in June. China purchased more gold than any other country and were consistent buyers.

China could actually consume more than 1,000 tons by year end and overtake India as the world leaders of consumption of gold, according to World Gold Council.

Some experts feel that China will eventually hit the 2,000 tons per year by the year 2016, which would work out to approximately 80% of the world global gold supply.

What effect would this have on the price of gold, too early to say but my dollar would be that gold currently is at a bargain rate for investors?

India has recently risen their import duty to 8 per cent from 6 per cent on June 5, along with central banks placing curbs on shipments on a consignment basis and limited shipments for local consumption against cash. This certainly has had an effect on their imports of gold from last year.

India is currently the largest and most important country in the world when it comes to gold. They are they largest holders of gold in the world, gold is estimated to make up approximately 7 percent of all Indians household savings, at the moment India is the largest consumer of gold in the world.

A tradition in India that has been around for hundreds of years, Indians have always relied on gold for savings, along with a payment from the bride's family to the groom's family upon marriage and it is traditionally made in gold.

India's love for gold is almost like a religion that goes back thousands of years, a tradition that is more than likely to never disappear from their culture.

Is China succeeding with their marketing gold plan  


All the Best,

Joseph F. Botelho One Gram at a Time

Joseph Botelho

Follow @jfbmarketing

"Pay Yourself First Because the #Economy that Matters Most... is the One in Your Own #Home" https://t.co/wo7XWWjaFZ pic.twitter.com/VSVAtkJ6El

— Joseph Botelho (@jfbmarketing) January 19, 2016