please explain why this would occur, page-26

chinese must be loving it. they announce their increased reserves and that they are soaking up domestic production and the rest of the world 'lowers' the price for them as if nothing has changed.

they can now continue buidling reserves, even think about buying 'on market' at these bargain basement prices.

i actually think if they started to get serious that they would strike a deal to buy all gold production from a couple of the 'majors' for a set period of time (say 5 years). they know that the comex is a manipulated game with physical delivery difficult, so why not go direct to producers? producers eliminate the 'physical delivery' issues and i am sure porducers would be happy to accept long term offtake agreements. they could even determine a fixed price with annual price revisions depending on spot movements similar to the iron ore contracts (of course the gold contracts shouldnt be a discount to spot, but a premium!!!)