There are lots of conspiracy theories out there, one of which is that China is trying to attain control of the world’s gold markets. Your friendly Gold Enthusiast, author of this blog, thinks it more likely they want more control over gold prices, which is a significant difference.
Yet from time to time, a strong case is made that the Chinese are actively pursuing control of the markets themselves. In today’s featured article, Craig Hemke of Sprott Money pulls together pieces of a global puzzle that sure make it sound like – to quote Sherlock Holmes – something is afoot.
Specifically, several large Chinese entities have been purchasing gold vaults in New York and London, while gold prices have taken on a close correspondence to the US Dollar – Chinese Yuan exchange rate.