China declared war on the City of London and Wall Street when they opened the Pan Asian Metals Exchange and PAGE the Pan Asian Gold Exchange.
Their opening salvo will be fired in October when the Pan Asian Metals Exchange allows international investors to buy into a 90 day rolling spot gold contract which is for allocated gold. They already have a ten ounce mini-gold contract and a similar silver contract. The investor will have the choice of either take delivery of their gold or be paid in Chinese Renminbi. Major European and North American brokerages will allow investors worldwide to invest in the Pan Asian Metals Exchange.
Six major Chinese banks will fix the gold price every morning at 8am their time.
Currently, the price of gold and silver are set by the paper sale of silver and gold. The Federal Reserve is willing to pay JP Morgan, HSBC, Goldman Sachs and other banks hundreds of billions of dollars to short gold and silver.
Currently the New York and London banks own and run the gold and silver exchanges COMEX and the London Bullion Market Exchange. HSBC also runs the gold Exchange Traded Fund (ETF) GLD and JP Morgan runs the SLV ETF. ETFs use some bullion and a lot of paper to simulate the spot price of gold and silver bullion. They are designed to siphon billions of dollars in investor funds away the bullion market to paper.
Jeff Christian told us at the CFTC hearings that there is up to 100 ounces of paper gold and silver for every ounce of physical bullion. I have also written of leased gold where the UK and US governments lease their gold to a bank. The government is supposed to retain physical possession of the bullion and give the banks a certificate which is treated as gold. This paper gold is then sold five times and appears on the balance sheet of six banks as an asset.
The Chinese will put an end to paper gold. They will set the price of bullion. They will allocate a bar of gold to every bar on sale in their futures market. This is called allocated gold. The LBMA and COMEX are alleged to have 90% unallocated versus 10% allocated. But I have heard of a married couple from the Mideast who had to threaten a lawsuit to get a ton of supposedly allocated gold back from their Swiss bank. And now Hugo Chavez has driven the market insane by demanding the return of his 211 tons of gold. Ben Bernanke is printing dollars as fast as he can to subsidize tens of billions of dollars in losing short sales.
These new gold and silver investment products will be rolled out in October if not earlier. I have previously said that I expected silver to skyrocket by November. I also said that after silver goes through 53 dollars an ounce there will be no resistance to bullion going higher. When the New York and London stranglehold on the exchanges lose control, prices will jump. Of course SLV and GLD will be exposed for the scams which they are.
If you can have a guarantee of allocated gold and silver, why would you do any business at all with the criminal bankers and Ponzi scheme operators of London and New York?
Major London and New York banks, the LBMA, the COMEX, GLD and SLV are going down.
A Comment On The Rothschilds and the Pan Asian Metals Exchange:
I had previously disclosed the information about the 10% ownership in the Pan Asian Metal Exchange to my regular readers. I cannot put everything into every article.
Go back in history to the Battle of Waterloo (18 June 1815). What did the Rothschilds do? They told the City of London that Napoleon had won. Lord Rothschild appeared in public to sell his shares. But he had his agents buy back all of his shares and those of everyone who was panic selling.
In effect he declared war on the City of London in 1815 and won. The Rothschilds wound up owning the Bank of England until the post-war Labour government nationalized it.
How much do you want to bet that N M Rothschild is long on gold and silver while selling all of their paper?