Despite beliefs by U.S. banks they are in the driver seat, Julian Phillips argues China has a firm grasp on the price of gold.
JOHANNESBURG (GOLD FORECASTER) -
In addition to the excellent study of the Chinese gold market by the World Gold Council (WGC), which was recently released, we have received other reports on that ever-so important market that differ in viewpoint. We shouldn’t be surprised by this, not only because of the opaque nature of the Chinese gold market, but also the dearth of accurate statistics that are available on it. Yet, which ones are right is critical to our conclusions. Each paint very different pictures of the future of the gold price.
Nonetheless, what has come through the pages of this and other reports on the gold market is that China is not only the main force in the global gold market, but also that it is firmly in control. With the acquisition of so much gold in the last year and an ongoing persistent demand in the future, they have effective control of the gold price and the market. They play their control very cleverly so that it is not apparent.
You may be asking, so why isn’t the gold price at $2,000 or much, much, higher? It’s because they have found a way to buy gold without pushing up the gold price. ...