CME Chairman Terry Duffy

Fast forward to the 5 minute mark to see CME Chairman Terry Duffy's comments on the price of gold. It is interesting because gold bugs believe his organization is partly responsible for surreptitiously capping gold's price.

"with all that's going on in the world, it (gold) should probably be at $5,000 to $6,000 per ounce."

https://www.youtube.com/watch?v=U0NPC7tfyNw

SGE Chairman: 2013 Chinese Gold Demand Was 2000t

The gold cartel suppressing the price of gold is about to be squeezed--and hard.  China is publicly declaring how much gold they are consuming.  And the number is a lot bigger than "official" data from the World Gold Council, which is ironic given the WGC is supposed to be endorsing the gold industry on behalf of its constituents.  Instead, the WGC has become a mouthpiece for the bullion banks who are suppressing the price of gold.

https://www.bullionstar.com/article/sge%20chairman%20xu%20luode%20chinese%20gold%20demand

SGE Chairman: China Should Become First Class International Gold Market

http://www.ingoldwetrust.ch/sge-chairman-china-should-become-first-class-international-gold-market

...Xu points out that in 2013 Chinese mines produced 428 tonnes of gold and China net imported 1540 tonnes, adding up to nearly 2000 tonnes. This is exactly in line with the amount of total supply (/demand) at the SGE that year: 2197 tonnes. The 229 tonnes gap has been filled by scrap supply. With this statement Xu confirms that SGE withdrawals equal wholesale demand. (read this for a full analysis of the Chinese gold market).

Here is the disconnect:  in 2009, China surprised markets by announcing they had accumulated 1054 metric tons of gold in their reserves, an increase from 600 tons reported in 2003 by the State Administration of Foreign Exchange (SAFE).
http://uk.reuters.com/article/2009/04/24/business-us-china-gold-idUKTRE53N18T20090424

Since then, China has been mum about gold purchases.  Heady speculation is they are not announcing their gold purchase program to keep a lid on prices (buying at lower prices is advantageous).  Estimates range from 5000 - 6000 tons, and recent data suggests China's gold reserves could be even higher.

The next pertinent question is where is the bullion coming from?  The answer is likely from the vaults of the Fed, Bank of England, and IMF.  Other sources include the GLD ETF in London, with HSBC as the custodian.  This is the same HSBC who has been fined for laundering money for drug cartels as well as manipulating the LIBOR, among other markets.

It has been widely acknowledged that China is adding huge tonnage every year to their gold reserves.  But 1540 tons in 2013?
http://www.gotgoldreport.com/2014/08/koos-jansen-.html
And more in 2014?  The Chinese are hoarding a lot faster than their 50-year plan suggests.

Russia and China are signing bilateral trade agreements with each other, in addition to other trading partners.  They are making an overt, concerted effort toward de-dollarization.  One of the pillars of that strategy is to back their respective currencies--the ruble and the yuan--with gold.

This massive shift in wealth from western economies to the East is as clear as day to those with eyes wide open.  The rest of America sleep walks through life still believing in American exceptionalism, even as US influence abroad is plummeting along the same trajectory as the dollar's store of value.

Why should Americans care?  What are the consequences of the USDollar losing its reserve currency status?  Say hello to $10/gallon gas...or higher.

LBMA Chairman Tells Producers Gold To Plunge $400 In 2014

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2013/12/20_LBMA_Chairman_Tells_Producers_Gold_To_Plunge_%24400_In_2014.html

What Bernanke Really Said, Or How The Chairman Just Lost Control Over Policy Again

http://www.zerohedge.com/node/476255

We don’t believe the Chairman’s intentions have changed. Regardless, the Chairman’s credibility is once again damaged. If the Dollar breakdown continues, it will be a sign that the market believes the Chairman has again lost control over policy. The asset clearly in the best position in such an environment is Gold. After such a notable correction in the past 9 months, the precious metal once again becomes a very attractive global asset if monetary policy in the largest economy of the world spins out of control.