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Richard Russell - China on Massive Gold Accumulation Program

y thesis is that gold is now in such powerful hands (much of it even political) that there's no way that the US government would call in gold. Furthermore, what purpose would it serve if the US did call in the gold? In 1933 Roosevelt called in privately-held gold and then raised the price of gold from $20.22 to $35 an ounce, this in an effort to reinflate the depression-laden economy.’ Gold Note -- China has reserves of $3 trillion, of which almost half is in dollar denominated items. China is now the world's biggest producer of gold. And the Chinese government is going all out to increase its production of gold. China also is encouraging its people to buy and accumulate gold. Against it's huge ($3 trillion) reserves, only 1.7% of China's reserves are in gold. China is on a diversification program to increase its tiny reserves of gold. It is thought that China wants at least 10% of its reserves in gold. This means that China is on a massive gold accumulation program. My thought is that there is a "Chinese put" under gold. When ever gold corrects a bit, China is there loading up on what ever is available. Other central banks are doing the same thing. Gold is held in strong hands, big money buyers, central banks, large pension funds. This is not true of silver, which I believe is held in many speculators and quick-trade operators. Thus, silver is in weaker hands than is gold, and that's an important difference.

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