Gold Party, or as China is leading economists by the nose

Gold Party, or as China is leading economists by the noseThe financial situation in the near future on the outside seems pretty measured, but an analysis of global trends, says that about any lull in fact the question. Recent reports from the global markets are forced to direct more attention to the process which For transactions in precious metals and, specifically, on gold.

It is reported that the leading consumers of gold resources in the world, India and China have decided to reduce the import of the product in their home countries. The drop in demand for gold from Beijing and New Delhi immediately explained by several factors. The first factor, the views of economists, is that jewelers designated countries experiencing financial difficulties due to the fact that both internal and zabugornye buyers of gold jewelry restrain their appetites, and therefore the implementation of gold jewelry in decline. Prices for gold India alone, which is a major exporter of gold jewelery in the world, began to grow rapidly indecent …

Second factor is that both China and India for the near future have decreased the rate of economic growth that does not implement our plans for the processing of so-called commercial gold production in these countries. Specifically crisis, according to the views of the main western professionals can talk about the fact that India and especially China have decided to hold off on purchasing merchandise of gold in the previous volumes.

Meanwhile, over in the gold market transactions conducted over the last few months of this year, China has another outlook. A number of professionals believes that lowering the rate of purchase of the precious metal Beijing — essentially a lie. In fact, China not only not reduced the purchase of gold, and brought it up to record levels. At least, this provides a recognizable South American blogger Tyler Durden, who believes that in the near future, China's reserves in gold would have to reach 6000 tons (or already have gained). Tyler Durden, despite the emphasis cine own nickname, enjoys great popularity in the United States, and many of the readers of his posts suspect that the person is hiding behind a pseudonym, or which is the U.S. financial system, or is related to the analytical services of the United States.

In general, each individually decide whether to trust the words of the sovereign, but there is a definite trend which is very little, thoughts Durden does not.

So many news economic grounds to assert that the demand for gold in the world is falling, the main buyers of gold, as raw materials, reduce the rate of purchases. It would seem that this must inevitably lead to lower prices for the precious metal, and prices are rising, then …

After all, has to work a traditional law of economics: if there is no demand for the product, from the sale of such products or to renounce all, or simply to reduce the cost of it. Of course, no one is going to turn away from gold, even as it plays an important regulatory role in the modern economic model of the world. Who has more reserves, that is simpler and heterogeneous crises experience. But if no one wants to turn away, means it's time to lower the cost.

But it was not here! At the end of last week gold traded at a cost of 1,773 dollars per ounce, although the earlier days of the cost was 1,766 bucks. If you look at the change in the global precious metal prices for August and the first half of September this year, it appears that an increase of over 10%!

Many analysts tend to build up suddenly in the beginnings of an explosive growth in gold prices "new achievements" of the Fed. These achievements are the latest example program of quantitative easing from the U.S. Federal reserve system. The Fed is going to take a little money out of thin air, and more precisely from the bay finished products of South American printing press to snap up bonds to lower your interest rates, advancing to the throat of the American economy. In other words, the banks are again almost unsubstantiated Baksova papers that they (banks) will be able to use for the new step lending business and the public. This example program is the title of QE-3. As you know, the first two programs from quantitative easing to any drastic positive changes did not lead …

Of course, that's not necessary to be more spice in the economy, so imagine that QE-3 — a measure that further aggravate the crisis. If businesses and citizens to give practically virtual agents that have not yet had time to dry out after the release of the printing press, and then expect that these are all these people who receive loans will be fully prepared to pay real (secured something) means, it's just a utopia . In this context, we can expect QE-4 and even QE-444, but the debt will still continue to grow.

If a return to the theme that the world gold market price increases for the precious metal has reacted specifically to the Federal Reserve attempts, it is more than it seems reasonable that was far-fetched. In 1-x, the program of quantitative easing was announced in the first half of September, and the rising price of gold is observed for more than 2.5 months. It turns out that those who are engaged in trade in the global gold markets, have foreseen that the Emperor Bernanke (Fed Chairman) decides to launch in September a landmark program from QE-3. This is unlikely.
In-2, and myself Ben Bernanke says that QE-3 — not a panacea, but almost another attempt to find a way out of the crisis. However, this sample is more similar to the way a drowning man in the sea throwing bricks, so he grabbed him and swam to the shore …

It turns out that there is no trivial connection applets Fed and the rising price of gold is not. But since then, because of what grows cost this specific product, which, like, and began to take less and generally are looking at jewelry, as they say, indifferent? .. And just then, and remember to post the most mysterious South American blogger Tyler Durden, who says that maybe China just drives all over his nose. In other words, the application of lowering the purchase by China of gold, including gold for their reserves, may be true. Naturally, such a maxim everyone can try to refute, but then China — this is a country that used to conduct economic policy is very peculiar. Those Americans have repeatedly claimed that Beijing secretly holds the yuan, so that products made in China was in the best criteria, if products are of the same dollars. And China is on the accusations looking through his fingers and says that, he says, nothing like that, it's all your made-up charges. So what? And nothing? Continues to quietly stick to their line, like whether it's the Yankees or not.

So that still prevents China and gold, "little by little" to buy, but do not advertise their own actions? It would have nothing of this work is likely to accumulate gold reserves of China and did not issue, if not the mechanisms of the market. It's like water in communicating vessels: if one level has lowered, the other necessarily increase.

But if the government of China really decided to make such a manipulation of the gold, why secretly, and what it is they need in general? The answer to this question can be followed: China can take large quantities of gold to their reserves specifically covertly, in order to have the opportunity to shop for precious metal reserve profitable value. After all, as the world finds out that China imports the new tons o
f gold during the crisis, cost for the metal soar to record levels, which is not allowed to Beijing to conduct procurement in the previous volumes. And about the "why does he do it", so here in the 1-x decent gold reserves in any country in the world will not prevent (and China too), and in-2, one day China may only introduce a global economic society their large reserves, which will be fully able to completely bury the already shaky rule of dollar as the main reserve currency.

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