Is the strategy of Dr. No and Hung Fat
(Asian/Islamic Gold Buying) taking Final Form?
by James Sinclair
The key factor in the Chinese event is not the fact of the initiation of a Gold
exchange. That alone would not be anything much unless two other events had also occurred. The real news is the that the Chinese regime is finalizing a major 360 degree turn to the right in their terms.
Compare this new environment to Tanneman Square so that you will thoroughly comprehend it in terms of motion and trend. The Chinese have adjusted their legal code removing state assets from their privileged position above private assets in legal protection under legal code for the owner. That all translates into the right of private property. The second event as silly as it sounds was the criminal charge against a famous Chinese actress for failure to pay taxes. Up to now nobody of Chinese citizenship/domicile has paid taxes. Taxes exist as code but traditionally taxes and Chinese citizens have not paid too much attention to them. This is like any celebrity criminal case at a national level simply is a message sent to the populace for most significant impact. These two events plus the legalization of
investment in gold and storage facilities is a major event. A major event because China has a history of currency collapse and their memory is culturally infinite.
We now have in gold.
1. The Five Elements of a gold bull market
2. The Wild Card of the Islamic Gold Dinar
3. The Long Shot of the a Resuscitation of the Gold cover clause should the US dollar drop below 90 on the USDX.
We now have
4. Which is a Gold Backed (not convertible) Chinese Currency or Measure for Inter-Asian trade as part of a long term plan of Economic Ascendancy.
The Gold Dinar might simply be a first launch test with quiet Chinese
support.
Therefore the event in China of the initiation of Chinese open trading of gold is much more than just another exchange. It is another stitch in the cloth of what this gold market is really all about. It is a move toward the remonetization of gold by Asian/Islamic interest.
Now do we know the plan of Dr. No and Hung Fat? I never believed they were buying just for economic reasons. Since 1995 they have been buying all the gold sold by the gold producers, the gold cartel, the central banks, and the discouraged gold investors. Is their plan for huge profit now showing itself? Has their almost inexhaustible source of funds also been Chinese? Time will tell but my sources will know. I may have to take a trip to Asia soon. Stand by because when I am sure, you will also know assuming the price of telling you is not too steep.
Investment to spur Chinese gold demand
HONG KONG (November 02 2002) : The timing of the Shanghai Gold Exchange's launch this week is auspicious, three months before the Chinese New Year when people are most likely to buy the metal, but the extent of pent-up demand remains unclear.
The new exchange, which trades only physical gold, opened on Wednesday after a delay of nearly a year.
The approach of the biggest traditional holiday of the year, when people are likely to be more willing to buy gold ornaments, may give it's business a welcome kickstart.
Jewellery makers, as well as commercial banks offering gold investment products for the first time in more than 50 years, will be able to purchase gold on the exchange at market prices rather than at fixed rates set by People's Bank of China.
But the bank's tight control over the industry, not to mention years of Communist Party condemnation of investment in gold in the past, make it hard to assess true market demand.
"There is some room to grow any pent-up demand is probably going to be seen on the investment side," said Albert Cheng, Asia area manager for the gold producers' lobby group the World Gold Council.
But Cheng would not quantify his forecast.
China's physical gold offtake is estimated by the council to be slightly more than 200 tonnes a year, Cheng said.
Earlier this year, the People Bank of China (PBOC), which previously controlled almost all aspects of the gold industry, said commercial banks would now be permitted to offer customers gold investment products and safe deposit boxes to keep them in.
James Sinclair
Chairman of the Board
TAN RANGE EXPLORATION
www.tanrange.com
12 November 2002
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