In 2013; a chain of events led to what was (at the time) the greatest stampede into gold in human history. It began with the Cyprus Steal, the West’s first ‘bail-in’. This led to the realization (by the Smart Money) that no paper assets were safe any longer, within any Western financial institution or market.
In turn, this led to an unprecedented stampede out of the banksters’ paper-called-gold ‘products’, primarily their ultra-fraudulent bullion-ETF’s. With the paper-called-gold market being 100 times largerthan the real (physical) gold market; this naturally caused a plunge in the official price of gold.
It was at this point that the stampede into (physical) gold began. Some of this demand was from the West: sellers of these vast quantities of paper-called-gold suddenly saw the wisdom in holding real bullion: having physical custody of their asset, and thus zero counterparty risk.
Most of the demand, however, came from the East. With the price of gold falling roughly 30%, from already depressed levels; this was nothing less than a ‘dinner chime’ for Pavlov’s dogs. Unlike the serf-populations of Western nations; appreciation (and understanding) of precious metals has not been blunted by roughly 30 years of relentless anti-gold (and anti-silver) propaganda.
With this Eastern understanding; the world had already been witnessing a relentless transfer of the world’s bullion holdings from West to East. Thus like women flocking to a shoe-store sale; this ‘30% off’ on the price of gold in 2013 led to a spike in Asian demand beyond anything previously seen.
As indicated in a previous commentary in June of last year; at that time both China and India were on a pace to import roughly 2,000 tonnes of gold – surpassing any previous total for either nation. China, indeed, ended 2013 with net imports exceeding 2,000 tonnes, according to gold analyst (and China specialist) Koos Jansen.
Gold demand in India was temporarily derailed, however; as India imposed (what was at one point) anear-total embargo on (legal) gold imports into that nation. This draconian measure was a capitulation to blackmail from the One Bank, which had caused a ‘currency crisis’ in India by attacking the value of the rupee in (rigged) global FX markets. The bankers made it explicitly clear that nothing less than a dramatic drop in gold imports would/could rescue the rupee from these currency market attacks.
This post was published at BullionBullsCanada on 06 October 2014.
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