"A very reliable source close to several gold companies tells us Chinese interests are not only taking stakes in explorers and miners, they are also buying gold directly from producers and shipping it home. There is much talk in gold bug circles in the US that the recent purchase by the Bank of International Settlements of more than four tonnes of gold may have been wholly or in part on behalf of the People's Bank of China. Our source is quite clear on one thing: the move on NGF is just the beginning. China wants more gold and it doesn't want to pay full market price for it (as it doesn't for any mineral) so it will be looking to pick up more Australian gold producers and add the yellow metal to its existing central bank gold pile. Not something the Perth Mint will be happy to hear."
PG
P.S remember the acronym
P.P.S, I think to answer questions about arbitrage and price manipulation, the huge volume over the last few days indicates to me people are being manipulated out of their shares by the big boys. Stop losses get hit and people run for the hills DESPITE excellent newsflow over the short term/medium/long term
THR Price at posting:
3.8¢ Sentiment: Buy Disclosure: Held
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