Just to help you.....& me......the following is an often...

Just to help you.....& me......the following is an often repeated scenario going on as we speak ( & yes this is a freely available article on the web ) :


China is secretly accumulating gold

Its ultimate aim?
? To force a major upward revaluation in the gold price...and set in motion a global transfer of wealth on a scale never seen before.
This is what I mean when I say China is trying to 'corner' the gold market.

Sound like a stretch?

Maybe.

But you only have to look at what China is actively doing right now and the evidence is overwhelming.

Although not reported in the mainstream press, it is common knowledge in the gold watching community that gold and silver prices are 'managed' by Western central banks.

But believe me...the Chinese know it is happening.

And while prices remain held down, the Chinese are buying.

Consider this cable, prepared by the US Embassy in Beijing, and sent back to officials in Washington, DC... 

The embassy was responding to a report about China's National Foreign Exchanges Administration. Wikileaks revealed the cable last year (emphasis added is my own):
'China's gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the U.S. and European countries. The U.S. and Europe have always suppressed the rising price of gold. 

'They intend to weaken gold's function as an international reserve currency. They don't want to see other countries turning to gold reserves instead of the U.S. dollar or Euro. Therefore, suppressing the price of gold is very beneficial for the U.S. in maintaining the U.S. dollar's role as the international reserve currency. 

'China's increased gold reserves will thus act as a model and lead other countries towards reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the RMB [China's currency].'
Of course, that's what the government is saying. 

It's more telling to look at what the government is actually doing.

Again, the evidence is overwhelming...
#1: First of all, China's government is quietly hoarding massive amounts of gold...and banning exports
In 2007, China became the world's largest gold producer. It's maintained that position ever since.

In 2011 it produced 355 tons of gold, ahead of Australia, which produced 270 tons.

But not one single ounce of China's new supply made it onto the gold market. 

Every single mined ounce within its borders has to be sold to the government by law. It's an effective ban on gold exports.

China's last announcement on its official gold holdings was in April 2009, when it revealed a near doubling of its reserves to 1054 tons. That was the first announcement since 2002. 

But with Beijing absorbing all its domestic production and more, you can bet its reserves are now much, much higher.
#2: Second, it's encouraging its own citizens to transfer their personal savings into gold
For decades Chinese citizens were barred from owning physical gold, under penalty of imprisonment.

Now, they are actively encouraged to buy it.

China's state-owned TV network broadcast ads for its people to own gold. Locals can now even buy gold bars at ANY Chinese bank in the entire country. 

If you don't think that's strange, try buying gold at your local bank and watch the weird look you get from the cashier!

But perhaps even more telling...
#3: China's positioning itself to take on the international gold markets
Right now, London and New York are the global centres of Western banking and financial power. 

Beijing is quietly working to throw its weight into the mix.

In June 2011, it announced plans to open something called the Pan Asia Gold Exchange (PAGE). 

The plan for the PAGE market is to provide 100% gold- and silver-backed futures contracts...priced in yuan.

This would be an absolutely huge development. 

It would change the way gold is traded forever.

According to gold expert James Turk, 'the potential effects cannot be underscored enough — PAGE is clearly preparing the world for a Chinese world reserve currency.'

Now I don't think China's planning to take over the world's reserve currency...not yet anyway. 

With its closed capital market and a small and poorly functioning bond market, it couldn't even if it wanted to.

But clearly, the Chinese government is determined to make gold a much bigger part of their financial strategy in the coming years.

So where is all this headed?

Prepare for China's global 
currency 'Endgame'

Within the next five years, I believe China will announce updated gold reserves... 

This will probably be in the region of 5,000 tons...making it the second largest official owner of gold in the world.
? And it will send the price of gold soaring.
All attempts by the West to hold prices down will prove futile.

China will probably make this announcement on a weekend. By the time trading resumes, the gold price will have 'gapped up'. 

My guess is that $5,000 an ounce is entirely probable, if not higher.
? In effect, wealth would instantly transfer from bondholders to gold holders.
This revaluation would neutralise the losses China would incur on its FX reserves. 

It would also provide a windfall for all the Chinese citizens who took The Party's advice and accumulated gold and silver...thus offsetting the outrage resulting from the loss on the $3.73 trillion dollars of US debt sitting in its banks. 

If China plays it right, it might just manage to maintain a stable society...and change the rules of the global financial system to its benefit.

Let me be absolutely clear...

This is going to affect you 
in two significant ways

First, it's going to continue to drive gold prices much higher in the years to come...to levels that are quite unimaginable today.

And it's going to make some gold and precious metal investments extremely lucrative over the next few years.

Some of these investments could jump anything from 100% to 1,000% from their currently very depressed levels (I'll tell you more about these in a second).

That's the good news. 

The bad news is that the investments that have worked for you for the last 10 years, simply won't work for the next 10 years. 

Just think about what China is doing here... 

Instead of trying to create a DEBT-based reserve currency like the US, it's attempting to build a TRADE-based currency backed by gold.

If China can achieve this, the world's financial system will morph from a US dollar standard — based entirely on debt — to one characterised by trading bloc currencies...backed by gold.

Ultimately, the goal is to reduce its reliance on toxic western debt.