Today a legend who was asked by the Chinese government to give a speech to government officials in China spoke with King World News about a surprise shocker and China’s latest moves and that will create an upside explosion in the price of gold.
Eric King: “John, I know you are connected at the highest levels, what about this Deutsche Bank situation and their failure to deliver gold?”
John Ing: “That situation has been looming for some time now. Deutsche Bank had discussions with Commerzbank — that was a case of show and tell. Well, when talks broke off, one of both of them had surprises when they lifted their skirts. But this situation is not surprising, particularly given the large derivative bank that Deutsche Bank possesses…
To find out which company Doug Casey, Rick Rule and Sprott Asset Management are pounding
the table on that already has a staggering 10 million ounces of gold that just added another
massive deposit and is quickly being recognized as one of the greatest
gold opportunities in the world – CLICK HERE OR BELOW:
John Ing continues: “People are not aware of this, but for years now Deutsche Bank has been scrambling for physical gold. We have also seen Germany itself repatriating its gold from New York. But the underlying reality right now is that the physical market for gold is very, very tight.
We now have another factor at work and that is the October referendum in Italy, whereby the oldest bank in Italy and the third largest could be affected by the government wanting to introduce bail-in provisions. This will be yet another catalyst for a sustained upside move in the price of gold this fall.
‘Enter The Dragon’
Here is the third key factor at work in the gold market: ‘Enter the Dragon,’ which is China. China is the largest producer of gold in the world. And as of two years ago, China also became the largest consumer of gold. And at the Shanghai Gold Exchange, something like 2,500 tonnes of physical gold has been taken off the Shanghai futures exchange. When people do that on the Comex, they just get rolled over into paper the next month.
You also have the People’s Bank of China acknowledging that they now have 1,823 tonnes of gold, which is up from 600 tonnes, Eric, in 2003. That’s a whopping 200 percent increase, and that’s just what they are disclosing to us.
15 Chinese Banks Possess A Staggering $100 Billion Of Gold
15 Chinese banks are now allowed to buy and import gold. And it has been calculated from looking at the financial statements that these 15 banks have close to a staggering $100 billion of gold (roughly 2,500 tonnes of gold). We don’t know if they are holding storing this gold for their own clients or the government of China.
What we do know is that the Chinese have become very, very sophisticated in their physical gold purchases. We also know that the largest Chinese bank in the world, ICBC, has acquired from Deutsche Bank just a few months ago the 5,000 tonne vault in London. That 5,000 tonne vault will obviously store an enormous gold hoard.
China Now Has The Largest Strategic Oil Supply In The World
China also has the largest strategic oil supply in the world. Yes, it is larger than the United States and they accomplished that in less than two years.
But circling back to China and their massive gold accumulation, what is important to note here, Eric, is that all of China’s gold reserves will be exhausted by 2020. That’s only a few years away. So the Chinese will dominate the physical gold market not only in the months to come, but years to come because of their dwindling mine supply.
And remember, Eric, that the Chinese had already previously purchased a 2,500 tonne vault and they are building another vault in Shenzhen. China would not be purchasing these vaults unless they had a use for them. This proves what I have been saying for some time now — that China will continue to vacuum up all of the available supply of gold on the market.
This Shocker May Create Massive Surge In The Price Of Gold
And just as gold jumped 15 percent in British pounds on the night of the Brexit shocker, we may see something similar occur if an election shocker takes place in the United States. And I think gold is the perfect hedge to take advantage of the very real possibility of Trump being elected.”
***KWN has now released one of the most powerful audio interviews ever with legend Art Cashin and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***Also just released: The World Is Hanging By A Thread, On A Frightening Road To Perdition CLICK HERE.
© 2016 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.