“The West has been selling gold into a black hole. . . .”

Solving the secret behind the Chinese gold market

Epoch Times/Valentin Scmid/3-13-2017

“Here, Jansen points out a peculiarity regarding Asian buying: ‘Asian demand is strong when the price goes down. Western demand is strong when the price goes up. In April 2013, the gold price collapsed and a lot of gold was exported from the West to China, mostly from the U.K.’”

MK note:  The quote in the headline is from Koos Jansen, the Dutch researcher/expert on Chinese gold demand. It sums up the end result of the London-Zurich-Hong Kong-Shanghai gold pipeline which has been in operation for a number of years and channeled about 16,000 tonnes of gold in toto from Western holders to China since 2000.  Most of the experts believe the black hole is likely to remain functional as long as the West can unearth or pry loose hard metal to feed it.  For those who are just now learning the dynamics of the gold market, this article deals with a key piece to the puzzle – China’s enduring interest in the yellow metal.  China, Jansen points out, doesn’t allow even one ounce of gold and silver to leave its shores once it enters.