China Recasts Gold Bars - Converting to Kilo Bars

[Copper Catcher]

Folks this is real news...You can bet your sweet bippie that China is not taking the time and expense of re-casting gold bars unless there is a bigger plan ahead! Stay tuned, I don't think it will be long now....Can you say new world reserve currency?

By: Jim Willie CB, GoldenJackass.com

...China is well along an ambitious plan to recast large gold bars into smaller 1-kg bars on a massive scale. A major event is brewing that will disrupt global trade and assuredly the global banking system. The big gold recast project points to the Chinese preparing for a new system of trade settlement. In the process they must be constructing a foundation for a possible new monetary system based in gold that supports the trade payments. Initally used for trade, it will later be used in banking. The USTBond will be shucked aside. Regard the Chinese project as preliminary to a collapse in the debt-based USDollar system. The Chinese are removing thousands of metric tons of gold bars from London, New York, and Switzerland. They are recasting the bars, no longer to bear weights in ounces, but rather kilograms. The larger Good Delivery bars are being reduced into 1-kg bars and stored in China. It is not clear whether the recast project is being done entirely in China, as some indication has come that Swiss foundries might be involved, since they have so much experience and capacity.

The story of recasting in London is confirmed by my best source. It seems patently clear that the Chinese are preparing for a new system for trade settlement system, to coincide with a new banking reserve system. They might make a sizeable portion of the new 1-kg bars available for retail investors and wealthy individuals in China. They will discard the toxic USTreasury Bond basis for banking. Two messages are unmistakable. A grand flipped bird (aka FU) is being given to the Western and British system of pounds and ounces and other queer ton measures. But perhaps something bigger is involved. Maybe a formal investigation of tungsten laced bars is being conducted in hidden manner. In early 2010, the issue of tungsten salted bars became a big story, obviously kept hush hush. The trails emanated from Fort Knox, as in pilferage of its inventory. The pathways extended through Panama in other routes known to the contraband crowd, that perverse trade of white powder known on the street as Horse & Blow, or Boy & Girl.

http://news.goldseek.com/GoldenJackass/1340820786.php

[barrytrot]

A few too many hypothetical jumps at once if you ask me.

China is preparing for something -> Ok, I buy that.

Does that mean that every single other domino immediately falls -> doubtful. Especially since China would likely first sell out all their T-bills right? And that hasn't happened.


That said: Obviously in the future, 1 year? 5 years? 10 years? China will figure out a way to "punk" the US-Dollar. Of course. It's the obvious next play in their ascent to #1. But it's one that has to be handled a little less abruptly than this article insinuates.

[scyther]

They are recasting the bars, no longer to bear weights in ounces, but rather kilograms.

Bastards.

[shinnosuke]

I saw an article in a magazine about 6 years ago. I have tried Googling it several times since and was always unsuccessful. The title was: You've Got 8 Years to Learn Mandarin.

The premise of the article was simple. China used to be the world's economic superpower at the end of the Agricultural Age that ended when the planet's leading Western countries evolved into the Industrial Age. The formula for proclaiming China #1 was simple: The most mouths X the most food = the highest GDP.

Now we are in the digital age. China is ramping up and with the most users purchasing the most digital equipment (and food), they could take over the world's #1 economic powerhouse position. So if you knew Mandarin, you might parlay that into a lucrative career in business with them, similar to how I have used Japanese for the past 30+ years.

Let's add something to the formula. He who has the gold, rules.

[scyther]

I saw an article in a magazine about 6 years ago. I have tried Googling it several times since and was always unsuccessful. The title was: You've Got 8 Years to Learn Mandarin.

The premise of the article was simple. China used to be the world's economic superpower at the end of the Agricultural Age that ended when the planet's leading Western countries evolved into the Industrial Age. The formula for proclaiming China #1 was simple: The most mouths X the most food = the highest GDP.

Now we are in the digital age. China is ramping up and with the most users purchasing the most digital equipment (and food), they could take over the world's #1 economic powerhouse position. So if you knew Mandarin, you might parlay that into a lucrative career in business with them, similar to how I have used Japanese for the past 30+ years.

Let's add something to the formula. He who has the gold, rules.

Ugh. I've been trying to learn Japanese for years and I still haven't made much progress. So I only have 2 years to finish that and learn Mandarin (which seems much harder from all I can tell)? Looks like a busy 2 years...

[68Camaro]

Yet another conversion factor to learn... 1 kg = 32.2 toz (not exactly to 3 digits... so don't use this)

[Treetop]

I seem to remember awhile back china finding some of those tungston filled gold bars in their stocks? Perhaps they are melting them down just to check them all? Just a thought.

China has made it clear they dont particularly like how we manage our dollar, and their desire for an alternative reserve currency. As have the rest of the BRICS nations and several oil producing nations. Whether or not this is it, its only a matter of time.

[fansubs_ca]

They are recasting the bars, no longer to bear weights in ounces, but rather kilograms.

Bastards.

You'ld think Hu Jintao had been possesed by the ghost of Pierre Trudeau!

http://en.wikipedia.org/wiki/Metrication_in_Canada

[shinnosuke]

Look who's buying lots of gold (that we know about).

http://www.zerohedge.com/news/hoarding-continues-china-has-imported-more-gold-six-months-portugals-entire-gold-reserves

So what's keeping the PM Rally from happening? JFF gave us a heads-up a couple of weeks ago, but for many the rally wasn't really actionable. Of course, it can be argued that the rally is not done, and long-term, I know that's true. Fiat will eventually be recognized for the flushable material it is. However, when all news points to an increase in gold prices, why does it keep such a tight price range?

[68Camaro]

That wasn't the rally. Still yet to come. Breakout imminent.

[shinnosuke]

That wasn't the rally. Still yet to come. Breakout imminent.

Pictures, or it didn't happen.

[68Camaro]

That wasn't the rally. Still yet to come. Breakout imminent.

Pictures, or it didn't happen.

When it happens, I'll include a picture. Stay tuned...

This should probably be in the "PM Rally" thread of JFFs, but right now - while I don't believe in intermediate-term technicals, there is some merit to long term technicals, and we're in a symmetric wedge at the end of a "head and shoulders" formation. It's going to break-out, one way or the other. Combine this with world events and the calls for upside being made by fund managers and PM experts, I join with them in believing it's going to break up big, and attempt (if TPTB don't overcontrol it) to break very big. Gold back to upper 1700s and silver well into the low 30s, as a starting point. If TPTB lose control of it, we could see $40+ silver and $1900+ gold again, quickly (by October).

[NHsorter]

I like the sounds of what you say Camaro. May you be right!! It really does look like we are on the cusp here. I have not seen any valid evidence to the contrary.

If it really starts moving quick, it's going to be a real test of the strength of my hand. I have been sitting on a lot of stuff that I would normally flip and I am just waiting for a spike. It's going to take some strength on my part to meter it out.

[68Camaro]

I don't have the tools/data/experience I would need to time this or any subsequent end of it - maybe JFF does - so do your own due dilgence. TPTB don't want to see this, so there will be attempts to squash, and I can't say if/when/where they might be successful, or what the straw will be that might break the camel's back when the TPTB fail (if not this time).

It's not only the formal PTB that don't want to see this, but large independent other parts of our system don't want to see it. They want to see funds continue to be traded in fiat, indices to rise, fiat to reign - this out of convenience and because it's what they know, even if nothing else.