Chinese Wikileak confirms gold price suppression, UAE gold imports up
Posted on 05 September 2011 with 3 comments from readers
The Chinese authorities have concluded that the US and Europe have been artificially suppressing the gold price for years, revealed a cable from the US Embassy in Beijing published by Wikileaks.
It reported a recent radio broadcast that said: ‘According to China’s National Foreign Exchanges Administration China’s gold reserves have recently increased. Currently, the majority of its gold reserves have been located in the US and European countries. The US and Europe have always suppressed the rising price of gold. They intend to weaken gold’s function as an international reserve currency.
Price suppression
‘They don’t want to see other countries turning to gold reserves instead of the US dollar or euro. Therefore, suppressing the price of gold is very beneficial for the US in maintaining the US 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.’
ArabianMoney is pretty clear on what is going to happen to the price of gold and silver as a 30-year suppression of prices breaks down. We have been discussing this for several years on this website. Visit our archives to see the articles.
UAE goes for gold
Meanwhile, gold imports into the United Arab Emirates shot up in May to $2.2 billion with $1.3 billion in gold re-exports leaving the country with a net gain of $900 million in bullion. Gold was the top item in non-oil trade in May that totalled $20 billion, 15 per cent up on a year ago.
The UAE has no official gold reserves but privately held gold stocks in the country are running at record, though unknown levels. Bank vaults report no spare capacity.
However, the best-seller in the UAE gold souks right now is one-kilogram bars of silver costing less than AED6,000. Silver as poor man’s gold has actually seen higher price rises than gold but with higher volatility.
3 Comments posted by readers:
Any views on:
http://www.gbullion.com
Looks too good to be true!
Ed Note: The website does not say who owns it, always remember that knowing who you are trusting with your money is paramount, and in response to my enquiry the website responds:
GBULLION DMCC was registered in 2009 and operates in accordance with the law of United Arab Emirates (UAE), it holds the license (License Number: DMCC-31266) for trading gold, as issued by Dubai Multi Commodities Center. Originally positioned to capitalize on the European market demand for gold the local market in Dubai and Middle East in general began to take notice of how GBULLION positioned its services only recently and as a result the growth prospects are quite promising. That is why this September GBULLION started an active work in the Middle Eastern Region.
GBULLION DMCC is owned by private investors, the CEO of the company is Aleksey Kudrin, originally from Russia, now based in Dubai.
[...] The Chinese central bank has openly called for gold to be a part of a basket of assets used to support a new super-currency from the IMF, another indication of mounting support at the highest levels for giving a greater role to gold in the global economy, and complained about the ongoing gold price suppression in cables revealed by Wikileaks (click here). [...]
Dear M/S: Please tell me that from 24th september 2011 the gold pries will be supprss or raise????
if suppress or raise in prie please tell me when it is epeted.
Thanks
Haroon Ur Rashid
Agri-Engr UAE
haroonkhanaup@yahoo.com