Gold Prices: Is China Controlling Them?

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.  

By itself the evidence doesn’t prove something is afoot, but you know the saying – looks like a duck, walks like a duck, quacks like a duck… You can read all about it here.

 Related: Here’s How Gold Will Dominate Global Finance in the Future

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated with a business degree, then worked with Macy's. After Macy's he spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined a well-known financial planning firm as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where he worked first for a small manufacturing consulting company, then a major university. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoken at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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