Bill Murphy - - China NewsNow that I have that off my chest, possibly some FANTASTIC news to bring your way. There is a good shot we will be receiving extraordinarily bullish gold news next week, FOLLOWING the G-7 meeting this week. From one of GATA’s most reliable sources, one which I only hear from 2 or 3 times a year and whose reliable information has borne out over time:
Hi Bill
My friend at the European bank told me that the Bank of China is going to announce within the next week or so of a purchase plan of 1,700 tones of gold.
It seems to me strange that they will announce about a future plan hence boosting it’s price and paying more. They are too smart for that. More likely to my mind is that if this announcement will take place, it will be about past purchases.
It does confirm well your Stalker source information.
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Naturally, it would be more bullish if the Chinese still have that amount to buy. However, hard for me to imagine the Chinese would ever announce such a move beforehand, UNLESS they want to use it as blackmail against the US. GATA warned the Speaker of the House, Dennis Hastert on May 10, 2000 the US was vulnerable to such a possibility in the future. I mentioned the same in GATA’s Executive Summary that was sent to President Bush on his private fax line in late May 2001. Vet Café members will recall me notifying our followers that I received a letter from Lawrence Lindsay, his economic advisor at the time, which was postmarked the same day the fax was sent to him by one of the President’s boyhood friends from Midland, Texas.
However, not to be dismayed if the gold was already purchased. It would mean The Gold Cartel has really dumped an inordinate amount of the gold supply they have left to keep the gold price where it is. AND, after this Argentinean news, it should set a tone for other central banks to consider accumulating gold and scare the buggers out of the dummy western central bankers who have been stupidly dumping it at dreadfully low prices, having been conned by The Gold Cartel.
One more point, GATA has long predicted the trend of central bank gold selling would turn into one of central bank buying.