{"id":35913,"date":"2018-07-11T09:40:03","date_gmt":"2018-07-11T14:40:03","guid":{"rendered":"http:\/\/olduvai.ca\/?p=35913"},"modified":"2018-07-11T09:40:03","modified_gmt":"2018-07-11T14:40:03","slug":"has-the-pboc-taken-control-of-the-gold-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=35913","title":{"rendered":"Has The PBOC Taken Control of The Gold &#8220;Market&#8221;?"},"content":{"rendered":"<div class=\"mp-blog-head fix-me\">\n<h3><a href=\"https:\/\/www.sprottmoney.com\/Blog\/has-the-pboc-taken-control-of-the-gold-market.html\">Has The PBOC Taken Control of The Gold &#8220;Market&#8221;?<\/a><\/h3>\n<\/div>\n<div class=\"post-thumbnail\"><img decoding=\"async\" class=\"thumbnail\" src=\"https:\/\/sprottmoney.com\/media\/magpleasure\/mpblog\/post_thumbnail_file\/0\/0\/cache\/1\/ece9a24a761836a70934a998c163f8c8\/002da17dab7038e8380f5ce011dd142d.jpg\" alt=\"Has The PBOC Taken Control of The Gold &quot;Market&quot;? - Craig Hemke (10\/07\/2018)\" \/><\/div>\n<div class=\"mp-content std fix-me\">\n<p class=\"Body\"><span lang=\"EN-US\">The evidence is mounting, and we invite you to consider the implications.<\/span><\/p>\n<p class=\"Body\">First, a few items of background information. Perhaps these are unrelated, perhaps they are not.<\/p>\n<ul>\n<li>In 2013, a major Chinese conglomerate called Fosun International purchased One Chase Manhattan Plaza from JP Morgan: <a href=\"https:\/\/money.cnn.com\/2013\/10\/18\/news\/china-jpmorgan-real-estate\/index.html\">https:\/\/money.cnn.com\/2013\/10\/18\/news\/china-jpmorg&#8230;<\/a> Why would this be significant? Because it&#8217;s the same property that houses a massive underground gold vault &#8230; that just happens to be directly across the street from the New York Fed:<a href=\"https:\/\/www.zerohedge.com\/news\/2013-03-02\/why-jpmorgans-gold-vault-largest-world-located-next-new-york-fed\">https:\/\/www.zerohedge.com\/news\/2013-03-02\/why-jpmo&#8230;<\/a><\/li>\n<li><span lang=\"EN-US\">Next, ICBC (Industrial and Commercial Bank of China) purchased the lease of DeutscheBank&#8217;s massive London vaults in early 2016. ICBC then petitioned to join JPM, HSBC, Scotia, Barclays and UBS as a member of the London Daily Fix process:<a href=\"https:\/\/www.telegraph.co.uk\/finance\/commodities\/12090283\/Chinas-largest-bank-buys-huge-1500-tonne-gold-vault-in-London.html\">https:\/\/www.telegraph.co.uk\/finance\/commodities\/12&#8230;<\/a><\/span><\/li>\n<li><span lang=\"EN-US\">Soon thereafter, ICBC also bought a massive London gold vault from Barclay&#8217;s:<a href=\"https:\/\/www.theguardian.com\/business\/2016\/may\/16\/barclays-sell-london-bullion-vault-to-chinese-bank-gold\">https:\/\/www.theguardian.com\/business\/2016\/may\/16\/b&#8230;<\/a><\/span><\/li>\n<li><span lang=\"EN-US\">Most recently, the World Gold Council announced the offering of a new gold ETF to supplement the existing GLD. The custodian of the gold for this new fund? You guessed it &#8230; ICBC:<a href=\"https:\/\/www.prnewswire.com\/news-releases\/icbc-standard-bank-plc-selected-as-custodian-of-low-fee-gold-etf-300673263.html\">https:\/\/www.prnewswire.com\/news-releases\/icbc-stan&#8230;<\/a><\/span><\/li>\n<\/ul>\n<p class=\"Body\">Fast forward to the summer of 2018. Two weeks ago, our fellow columnist here at Sprott Money, David Brady, wrote an insightful piece regarding a new correlation for the global gold price\u2014the USDCNY\u2014which is the exchange rate of US$ to Chinese yuan. Though the PBOC maintains a &#8220;peg&#8221; for this rate, the rate is allowed to fluctuate if the PBOC deems it necessary. Before we go on, I urge you to read David&#8217;s column: <a href=\"https:\/\/www.sprottmoney.com\/Blog\/gold-the-chinese-connection-david-brady-27-102018.html\">https:\/\/www.sprottmoney.com\/Blog\/gold-the-chinese-&#8230;<\/a><\/p>\n<p class=\"Body\">Now consider this. Since the PBOC began to actively devalue the yuan versus the dollar four weeks ago, the price of COMEX gold has tracked the yuan nearly tick-for tick. This is clearly shown on the chart below. We&#8217;ve taken the USDCNY and inverted it to CNYUSD. This is shown in candlesticks. The price of the Aug18 COMEX gold is represented as a blue line.<\/p>\n<\/div>\n<p>\u2026click on the above link to read the rest of the article\u2026<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Has The PBOC Taken Control of The Gold &#8220;Market&#8221;? The evidence is mounting, and we invite you to consider the implications. First, a few items of background information. Perhaps these are unrelated, perhaps they are not. In 2013, a major Chinese conglomerate called Fosun International purchased One Chase Manhattan Plaza from JP Morgan: https:\/\/money.cnn.com\/2013\/10\/18\/news\/china-jpmorg&#8230; Why [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[9023,20868,374,10363,2908,4506,4507,2914,2615,20867,1988],"class_list":["post-35913","post","type-post","status-publish","format-standard","hentry","category-economics","tag-craig-hemke","tag-fosun-international","tag-gold","tag-gold-manipulation","tag-gold-market","tag-icbc","tag-industrial-and-commercial-bank-of-china","tag-pboc","tag-peoples-bank-of-china","tag-sprott-moneynews","tag-world-gold-council"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=35913"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35913\/revisions"}],"predecessor-version":[{"id":35914,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/35913\/revisions\/35914"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=35913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=35913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=35913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}