Chinese Gold Buying Stampede

It seems the longer the Federal Reserve and its representative bullion banks keep a manipulative lid on the price of gold using paper gold naked shorts, the more physical gold the Chinese buy:

From PM Fund Manager Dave Kranzler, Investment Research Dynamics: 

We can see elevated gold purchases on wholesale level (SGE withdrawals) of late, rapidly being sold to end consumers in the shops at the moment. China Gate News Channel reported on January 3rd a “stampede phenomenon” in a shopping mall in Beijing, were gold was sold at a rate of 400,000 yuan per minute (Bullionstar.com)

On the Shanghai Gold Exchange itself, another 59 tonnes were withdrawn last week (Bullionstar.com).  That makes a total of 374 tonnes YTD, which is up 17% year over year.  Please note:   This does not take into account the amount of gold being accumulated by China’s Central Bank, The Peoples Bank of China.   The PBOC is the only entity in China that is not required to source its gold from the SGE.   Here’s a snapshot of the of the massive gold accumulation going on in China (source:  goldchartsrus.com):

It is highly probable that China’s gold accumulation, including whatever amount the PBOC is taking down, exceeds the annual global mine supply. While the Fed/US Government maintains a tight policy of using paper gold to suppress the natural market price, the eastern hemisphere continues to gorge on cheap gold. By the time the mainstream in the west wakes up to what is going on, it will be too late.

While everyone is currently worried about what will happen to the euro and the EU if Greece defaults on its debt, one has to wonder what will happen when the west – specifically the Fed/bullion banks – defaults on its massive paper/leased/hypothecated gold short position, the size of which dwarfs the amount of outstanding sovereign Greek debt.....