China knows that gold is rigged.........``It is an open secret among precious metals analysts and traders that the gold and silver markets are being heavily manipulated, mostly to the downside; i.e. their prices are being suppressed by various Western financial entities in what should be a scandal much bigger than the Libor rigging scheme.``
``What seems to be still much less known to most of the investing public and even the better-informed metals analysts, however, is that this news also appears to have very much come to China's attention of late, and the country actually seems to have decisively entered the game on the opposite side, by taking advantage of the artificially low/suppressed prices to accumulate gold.``
``And, mind you (short speculators watch out!), given China's huge foreign exchange reserves, there is yet a long way to go for the country if it was to bring up its gold holdings to similar percentage levels as those of most Western countries (that is, if those Western countries' gold that is shown on their books is actually still physically there. That, of course, is an issue that many are concerned about, including, as of this week, the German 'Federal Auditor's Office' that just asked the German Bundesbank to seek to inspect its gold reserves held with the New York Fed.``
https://www.marketwatch.com/story/china-knows-that-gold-is-rigged-2012-10-24?pagenumber=1