Does China have a Secret Plot that Could Send Gold to $4,000 per Ounce?
3.4.2014 BY KEN MILLSTONE
China is now the No. 1 producer, No. 1 consumer, and No. 1 importer of gold – but it’s what they plan to do with all of this gold that should have Americans concerned.
Gold prices are up nearly 10% since the start of the year, but analysts say that a much more powerful catalyst is about to emerge: China.
It’s official. According to data released last month, China is now:
1.The No. 1 producer of gold in the world, mining a record 437 tons in 2013 – 150 tons more than second-place Australia.
2.The No. 1 consumer of gold in the world, surpassing India for the first time ever as already soaring Chinese gold demand rose another 32 percent in 2013.
3.The No. 1 importer of gold in the world, vacuuming up a record 1,158 tons through Hong Kong, which publishes gold trade staticstics kept secret in mainland China.
And… keep in mind, these are the “official” numbers. Some experts believe the actual numbers are in fact, much, much bigger. China does not report gold imports through Shanghai or other metals exchanges.
Find out more about China’s gold stockpiling
International banking expert and bestselling author James Rickards was asked about China’s gold accumulation and said, “I have spoken to a number of sources in Asia. Every time I have an estimate and try to verify it, what I get back is that I’m wrong on the low side.”
Where is all of this going – and what does it all mean?
Matt Badiali is a gold and natural resources expert at Stansberry & Associates Investment Research. He says a huge gold stockpile could be a strategic asset for China, which is seeking to internationalize its currency.
According to Badiali, China wants its currency to be more important in international trade – so that trade partners don’t have to use dollars in international payments. A large Chinese gold reserve would speed up that process by making the Chinese Yuan a credible “reserve currency” – possibly even one freely convertible to god, as the dollar was for over a century.
Of course, China has kept these maneuvers secret.
“China’s undeclared official gold reserve purchases remains an elephant in the room in the gold market with very little coverage of or analysis of the People’s Bank of China’s quiet and untransparent accumulation of gold,” Business Insider reported.
But Badiali says he expects the Chinese government to make a huge announcement as early as April 24th of this year, which could send shockwaves through the financial markets, and could send the price of gold soaring.
As part of his financial research at Stansberry & Associates, Badiali has put together a fascinating slide presentation, detailing exactly what he thinks China is going to announce on April 24th… how it will affect the United States… and why it could send gold prices soaring.
You only have weeks to prepare your portfolio for this major Chinese announcement.
