Skol made several statements one being that the current explosion in the Chinese imports of gold can be reversed.
Although he gave neither a particular reason for his opinion nor a time frame, I do believe that he has a valid point.
If, as being alleged here, the force behind such surge is the PBOC then at a certain point in time the imports will have, in the absence of any new factors, to collapse.
According to the South African Reserve Bank, the commonly accepted target for a central bank is to have 10% of its reserves in gold.
On this basis it seems plausible to believe that in the not very distant future the imports of gold, in the absence of any new factors, will collapse.
Yes, the Chinese middle class is expanding but not, as far as I know, at explosive rates.
Now, when I worked during the 70's in Greater China, Chinese Mainland was not only very poor but under communism also very egalitarian. This means that a rapid passage from a state were people had almost no capital at all to what we see today must beg the question: from where did the money come from? Unless you can explain things differently, it must have come in a large part from debit and property rights obtained through connections, dealings, corruption, and some other similar means.
Now, rapid international integration (the main reason for China's astonishing rapid industrialization) does create interdependence and in order to show to you and others what that means I have included bellow two graphics where it clearly can be seen the SSEC crashing even faster than the SPX in response to events in America.
