wikileaks flash: us gold rigging - china knows, page-13

Flats, Pierre Lassonde makes the point that in 1980 the people lining up in NY were selling their gold not buying it. Jim Rickards also says the gold price had moved so high back then that the USD had greater than 100% gold backing. So of course gold fell, especially when Volcker began raising rates

China has indeed allowed their citizens to buy gold after decades of it being illegal, which again proves my point... the Chinese are being able to import all the gold they want and that is driving the global price higher. And that's how free markets work... higher demand meets higher supply through rising price. It's called price discovery.