Australian Financial Review Warns About Paper Gold: China Moves To Physical Only ~ Derivatives Not Allowed.

Vatic Note:  Now this moves me to question “What benefit is this to China and the International Bankers who run China through Goldman Sachs brokerage House?” This is a highly educational article, with much that many of us did not know about the world of gold and silver.

The Chinese are definitely learning a lot about manipulation of markets from the Goldman Sachs  crowd.  Will we have to keep an eye on them as well as the international bankers?  Will they buy into the Chinese Brokerages Houses and take them over, and manipulate markets again once the chinese have Control of them?  Remember 3,000 of their leaders were educated at Oxford.  That screams volumes about what the plan is.  Exactly what do the international bankers plan to teach the Chinese that will benefit the Rothschild cabal???

Is the answer buried in this article???  You read and decide.

FUND RAISING:  We definitely make our monthly deficit needs. But now, we have another problem.  In taking some advise from readers, I have decided to try a remedy for my cancer, but it costs more than I can afford on my paultry social security.  So any help from our readers who can afford to donate will be greatly appreciated.  After all, this is a life or death issue now.  So, if you can afford to donate, please do so at the Pay Pal button off to the right of the blog.  If this works I hope to be back up to 3 a day as was the case before my illness.  Thanks in advance for caring and sharing to save a life.  

Australian Financial Review Warns About Paper Gold: China Moves To Physical Only ~ Derivatives Not Allowed.
https://politicalvelcraft.org/2016/05/02/australian-financial-review-warns-about-paper-gold-china-moves-to-physical-only-derivatives-not-allowed/
By Admin,  Political Velcraft,  May 2, 2016

One of the strongest arguments against investing in gold was that the metal yielded no interest while you were holding it ~ so it stands to reason that the environment of low interest rates should be friendly for investors in precious metals.

That argument, while valid, has lost significant merit, because investors don’t get much of an interest rate holding government bonds or bank deposits. Indeed in several countries interest rates have gone negative, which means that investors are paying governments for the privilege of holding their bonds.

Fiat Economic Collapse Is Coming!
Revolt Of The Debt Slaves: When The Herd Turns

The price is set every night in derivative trading on Comex in New York. The gold price is also nominally fixed in London. The London market is theoretically a physical market, but in practice ~ it is really a derivative market with very few physical deliveries.

• COUNTDOWN TO THE ULTIMATE SHORT SQUEEZE

The big holders of gold are in China and other Asian countries. So the price is being set by derivative traders who hold little or no gold, while Asians are continually amassing the physical metal.

If, one day somewhere in the future, the physical holders decide to start setting the price, it will rise quite sharply. So it’s not a bad strategy to buy gold whenever it dips.
GATA
“If, One Day Somewhere In The Future “->Just Arrived April 19, 2016It’s worth noting that gold has been a better investment in $A than $US. Gold climbed to $US1883 in August 2011, dropped to $US1061 last December and has since rallied to about $US1200.
 
That’s been a very bouncy ride for American investors but Australians have not suffered anywhere near the same level of trauma.
 
Gold peaked at $1784 in September 2011, when our currency was at a premium to the $US. It slumped to $1306 in April 2013, ran to a recent high of $1740 in February and is now hovering around $1600.
 
So for Australians the barbarous metal, as Lord Keynes once described it, has been holding up quite well. Investors should be aware, however, there is a fundamental instability in the gold price.
 
The price is set every night in derivative trading on Comex in New York. The gold price is also nominally fixed in London. The London market is theoretically a physical market, but in practice it is really a derivative market with very few physical deliveries.
 

The big holders of gold are in China and other Asian countries. So the price is being set by derivative traders who hold little or no gold, while Asians are continually amassing the physical metal.
 
If, one day somewhere in the future, the physical holders decide to start setting the price, it will rise quite sharply. So it’s not a bad strategy to buy gold whenever it dips. There are several bullion houses in Australia who can provide the metal.
 
At, say, $1640 an ounce, the bullion house might quote a buy price of $1654 and a sell of $1616, giving itself a margin of about $38. An investor is, of course, betting not only on the gold price but also on the $US exchange rate.
 
Investors who don’t fancy buying the metal can opt instead to buy shares in gold mining companies. There are plenty listed on the ASX and any who can’t make profits at the current price can be dismissed as hopeless.