Julian Phillips takes a look through history and sees some evidence to China's claims, recently broadcast on Wikileaks, that the US and Europe have engaged in gold price supression.
Author: Julian PhillipsPosted: Thursday , 08 Sep 2011 BENONI -
In a piece of news that certainly delights GATA, Wikileaks published a cable going back to 2009 in the year that European central banks halted their sales of gold. It said the following:
"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 toward reserving more gold. Large gold reserves are also beneficial in promoting the internationalization of the Renminbi [Yuan]."
Chinese Gold Accumulation
In the five years from 2003 to 2008 China added 454 tonnes of gold to their reserves. They amassed these reserves in a government agency which handed over the extra tonnage to the People's Bank of China in 2008. We believe that they continue this policy of using a non-central bank agency to gather gold for their reserves. If they do stick to this policy they should make their next announcement in 2013. The volumes of gold added up to 2008 could be seen as adding 91 tonnes a year since 2003 or, more likely, adding the growing domestic gold production directly to their stockpile. If that is the case then we expect an additional amount of at least 2,000 tonnes to be passed from the gold buying agency to the People's bank of China.....
http://www.mineweb.com/mineweb/view/mineweb/en/page31?oid=135103&sn=Detail&pid=31
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