Will China be forced to dump gold onto the global market?

Discussion in 'Gold' started by SpacePete, Jul 8, 2015.

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  1. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Could China try to fund stock market emergency measures with its gold reserves? If they dump gold onto the global market then that will not be good news for gold. :(
     
    SpacePete, Jul 8, 2015
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  2. Skyrocket

    Skyrocket Well-Known Member Silver Stacker

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    Don't know.

    Now that their stock market has crashed I would have thought that many of those Chinese investors who pulled their money out would be looking to invest in Gold and Silver as a safe haven. If that happens and China is going to dump it's Gold it could dump it on it's own market/people. Who knows, wait and see.
     
    Skyrocket, Jul 8, 2015
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  3. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Market investment has been funded through borrowing in many cases. That's a major part of the problem. There's nothing there but huge debts that will have to be repaid.
     
    SpacePete, Jul 8, 2015
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  4. Skyrocket

    Skyrocket Well-Known Member Silver Stacker

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    Then that is bad news/times for them, and it shows how little I know about these things. I'm still learning. :/
     
    Skyrocket, Jul 8, 2015
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  5. billybob888

    billybob888 Well-Known Member Silver Stacker

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    China will probably dump its trillions of foreign reserve before dumping its gold, foreign reserves are probably more liquid and easier to sell too
     
    billybob888, Jul 9, 2015
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  6. trew

    trew Active Member Silver Stacker

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    A central bank doesn't need to sell anything to raise money - they just lend it into existence
     
    trew, Jul 9, 2015
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  7. -j-p-shmorgan

    -j-p-shmorgan New Member

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    Ahhhh, the power of non-existent, invisible money! :lol:
    And the USD is soooooooooo stronggggg..... lololol
     
    -j-p-shmorgan, Jul 9, 2015
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  8. -j-p-shmorgan

    -j-p-shmorgan New Member

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    Agreed. China isn't selling their gold.....especially at these price levels.
    Also, they mine & produce their own PM's & haven't reported gold holdings in a long time.

    I expect them to be holding a serious, very serious, amount of Gold.
    If they wanted to wage war - all it would take is backing the yuan with gold.
    An absurd gold holding & backing the yuan with it...could and would cripple the USD.
     
    -j-p-shmorgan, Jul 9, 2015
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  9. billybob888

    billybob888 Well-Known Member Silver Stacker

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    The question should be:

    "Will GREECE be forced to dump gold onto the global market?"
     
    billybob888, Jul 9, 2015
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  10. jcanuck

    jcanuck Member

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    From what I've read, a lot of the Chinese investors have been taking out margin loans. With trading in nearly half the stocks on the Chinese markets being suspended, I'm wondering if many of those investors might be needing to sell any gold or silver that they currently own in order to help meet any margin calls they might be facing rather than moving their money into gold and silver.
     
    jcanuck, Jul 9, 2015
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  11. -j-p-shmorgan

    -j-p-shmorgan New Member

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    Nah. They are smarter than that. It would be a short lived glorious moment for them.
    UNTIL THEY REALIZE WHAT THEY JUST DID. lol
     
    -j-p-shmorgan, Jul 9, 2015
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  12. 797craig

    797craig New Member

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    .
     
    797craig, Jul 9, 2015
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  13. scrooged

    scrooged New Member

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    maybe it's their master plan to dump US Treasuries
     
    scrooged, Jul 9, 2015
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  14. JulieW

    JulieW Well-Known Member Silver Stacker

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    Casey Report:


    The world's biggest gold buyers are suffering a major liquidity crunch. Many won't have the cash to buy anything, not even gold. Worse, hundreds of Chinese stocks are halted and huge numbers of investors are facing margin calls. That means that many who own gold will be selling because it's the one thing they can get a bid on.

    When a large number of buyers are forced to become sellers well, counterintuitive days like today can make sense.

    If I'm right about this, precious metals will slide until the liquidity crunch in China passes. We saw the same thing in 2008. But when this reversal happens, the rebound should be even sharper. Unlike most Americans or Europeans, Chinese people do see gold as an important form of wealth protection.
     
    JulieW, Jul 9, 2015
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  15. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Will be good to keep an eye on. I wouldn't mind some cheap gold, but I just hope I don't wait too long and get caught by the reversal. :)
     
    SpacePete, Jul 9, 2015
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  16. willrocks

    willrocks Well-Known Member Silver Stacker

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    Back up the truck time?
    [​IMG]
     
    willrocks, Jul 9, 2015
    #16
  17. The Crow

    The Crow Member Silver Stacker

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    ^^^
    That's what we'll need to take the days wages home, where the Ozzie dollar is headed
     
    The Crow, Jul 9, 2015
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  18. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    That's only for the remaining locals who still have jobs.
     
    SpacePete, Jul 9, 2015
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  19. JulieW

    JulieW Well-Known Member Silver Stacker

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    and Daily Reckoning today quoting 'The Economist'.

     
    JulieW, Jul 9, 2015
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  20. SpacePete

    SpacePete Well-Known Member Silver Stacker

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    Impacts can be asymmetric, especially in a panic for the door.
     
    SpacePete, Jul 9, 2015
    #20
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