China Can and Will Confiscate Gold from the SGE, Banks and Chinese Citizens, When it Suits Them

This article takes from previous articles featured in the Gold Forecaster but emphasizes one aspect of developments in China, the dangers of owning and storing gold in China and, by extension, Hong Kong.

by Julian D. W. Phillips
Gold Seek

By far the greater bulk of gold owned in China is under the control of the Shanghai Gold Exchange and they are controlled by the Chinese Central Bank, the People’s Bank of China. Should they wish to confiscate their citizen’s and institution’s gold, it can be done overnight. This includes gold held in Hong Kong. We see Singapore bowing to the will of China in such an event too.

The Structure of the Chinese gold market

What is not appreciated by most analysts when commenting on China is the power of the Chinese government over its people! This country is not a Democracy, does not have a fragmented system of government where the banking system is separate from government, or where every four years the government is vulnerable to removal at election time.

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