Friday, May 30, 2014

Chinese Government Controls all Exports of Gold

The Chinese government controls all exports of gold and since they are a net buyer, they probably would not allow any exports.

The amounts of gold involved are so large that clandestine sources seem unlikely. There is only one government in the world that even owns 4,000 tonnes – that’s the U.S., supposedly.

I think it comes down to the powers that be simply trying to keep things under control. The dollar is coming under extreme pressure here, and it looks to have broken down here, in fact. That should have people going into gold.

The U.S. GDP growth, which was expected to be around 0.1%, will probably be revised even lower for the first quarter of 201414. I do not believe that any economic recovery is really occurring, because the middle class is simply being routed. We are seeing no real wage gains and inflation is well beyond reported CPI numbers, which are just a joke. In the real world, we all know inflation is much higher.

There’s no rational explanation, in my opinion, of where the gold is coming from apart from central banks.

- Source, Eric Sprott via Sprott's Thoughts