china owed enough by usa to buy all its gold!

china owed enough by usa to buy all its gold!

The usa/big corps are pulling out all stops to hold down gold and silver prices as long as possible.

The usa/big corps have been doing this for 10 years and yet gold and silver prices have gone up.

But China announced in 2010 it was going to buy gold (and silver) big time and wanted its citizens to buy gold also.

And China is a big producer of silver.

In the first quarter of 2011 China bought around 90 tons of gold.

At this pace they will have bought around 360 tons by the end of 2011.

This works out to about 0.225% of all known gold in the world, about 160,000 tons.

If this pace continues, by the end of 2015 they will have bought around 1.125% of all known gold in the world, about 1,800 tons.

Assuming China had no gold before 2011, China and 89 other owners this size would account for all the known gold in the world (160,000 tons).

As of 3/1/2011 the usa debt held by China was about $1.16 trillion.

Assuming it's all there in Fort Knox, etc., usa/big corps gold holdings are about 8% of 160,000 tons (all known gold in the world), which is about 12,800 tons.

We'll call it 13,000 tons.

At $1,600 per Troy ounce (12 ounces per pound) that's $19,200 per pound.

We'll call it $20,000 per pound.

At $20,000 per pound that's about $40 million per ton.

Therefore, the value of usa's/big corps' gold is about 13,000 tons times $40 million per ton, which is $560 billion (about half of what the usa owes China ($1.16 trillion)).

China will wait a while for the usa/big corps to succeed in forcing down gold and silver prices.

But then China will continue buying even if gold and silver prices continue to go up as they have for the last decade.

They are on a mission to make the renminbi the world reserve currency and can't wait forever for the best price.

China and other nations, groups and individuals buying gold and silver will help to make the gold and silver standard, that the world is already on, work as usa/large corps ownership of gold declines.

I'm betting on that decline even as large amounts of computer generated fake sells (known as "naked" shorts) result in prices dips.

I'm betting on it because starting this year there will be more competition for buying the dips from China especially, as well as other nations, groups and individuals.

This will result in the usa government/large corps buying less until there's nothing "physical" left to fake-sell, then sell short, then make a profit, then buy back cheaply.

Those days are quickly coming to an end.


http://buygoldansilverlong.blogspot.com/2011/06/china-owed-enough-by-usa-to-buy-all-its.html