China’s Stunning Move To Dominate The World And The Real Reason Why China Is Buying So Much Gold

kwn-leeb-i-6172016-768x419With many investors worried about the economic turmoil that has engulfed the globe, here is a look at China’s stunning move to dominate the world and the real reason why China is buying so much gold.

For some of the lowest gold and silver prices in Singapore visit 

China Quietly Increasing Its Global Dominance
Stephen Leeb:  “In a fairly lackluster week for the markets, the only news that seemed to arouse any response was China trade data. The headline numbers reported that, contrary to expectations, both Chinese exports and imports had declined in September compared to year-earlier levels, with exports dropping by more than 10 percent in dollar terms. Stock and commodity markets in the West fell in response, believing the numbers signified Chinese weakness that would hurt global growth…
But when you look more closely, things weren’t quite what they seemed. One clue: Western markets fell more than Chinese markets. If the trade news really was so bad for China, you’d expect the reaction in China would be far worse than in the West.

Moreover, the higher-than-expected decline in trade came when you looked at monthly results. But the quarterly figures told a different story: both exports and imports in the third quarter were higher than in the preceding quarter, the first time this year to see a quarter-to-quarter rise.

A Worrisome Message For The West
In other words, the trade data doesn’t depict a China that is faltering. Ironically however, they do, nonetheless, convey a worrisome message for the West, but for a very different reason.

The really pertinent news is that exports from China to countries along the “Silk Road” have exploded this year. On an unweighted basis, exports to Pakistan, Russia, Poland, Bangladesh, and India increased by over 11 percent, a remarkable number, especially in a world with barely 3 percent growth. Moreover, barring a massive economic accident, China’s trade with Silk Road countries will amount to more than $1 trillion in 2016, accounting for more than 25 percent of its total trade compared with less than 20 percent conducted with the US.

The undeveloped Silk Road encompasses nearly 4.5 billion inhabitants when you include China. By steadily creating land and maritime routes linking those vast populations, China is laying the groundwork for burgeoning trade. Through its policy banks and several dedicated development banks, including the AIIB, China will be front and center in developing infrastructure within this enormous region. According to Oxford Economics, infrastructure spending in the East will amount to over $5 trillion a year. Such spending will hand China a key lever for controlling what are still the building blocks of world growth: commodities, ranging from the very scarce, like heavy rare earths, to ones that are seemingly more plentiful, such as iron ore (see iron ore chart below).

China’s 10-Year Iron Ore Imports


If that sounds farfetched, look at the chart above, which even surprises me. As it shows, China’s iron ore imports have continued to gallop forward. If we look at four-quarter moving averages, we find that over the past five years, which cover the 2011 peak in commodities, China’s iron ore imports have grown at a 9.3 percent annualized rate. The story is similar for oil, copper, and most other major commodities. China continues to accumulate them like they are going out of style – and, you know what, maybe they are, at least when it will come to the West’s ability to get enough.

King World News - What Is Really Happening In China Will Shock The World And The Global MarketsChina To Control World Commodities
I would be the first to agree that China itself still needs to build massive amounts of infrastructure within its own boundaries. Nonetheless, a sizable chunk of the commodities China has been accumulating will go to building infrastructure in the 40 or 50 countries that comprise the Silk Road (also known as “One Belt, One Road”). The bottom line is that China will end up controlling a vast portion of the world’s commodities along with a vast portion of world commerce. And this will give it a massive, unassailable lever for controlling the world’s monetary system.

So let me rewrite the headlines from the September trade report as follows: “China’s trade data shows continued burgeoning growth of trade along the Silk Road, with China’s surging imports of critical commodities moving it closer to world dominance over major commerce.”

Leeb II 8:14:2016A Yuan Oil Benchmark And A Golden SDR
The next step will be the trading of oil futures in Shanghai, which will establish an Eastern benchmark for oil. Through, among other things, its oil-refining and steel-making capacities, China will serve as the center for adding value to most commodities. China’s massive stockpiles of bulk and base commodities will ensure that it will always have access to adequate supplies. The oil benchmark will be denominated in yuan, as will other commodities that will be traded on the Shanghai exchange.

As I’ve argued before, China will then bring gold into the equation, either by backing the yuan directly with gold or by backing the SDR with gold and establishing the SDR as the currency for trading commodities. Or – and this would be the most complicated but perhaps the best solution – gold might become the sixth component of the SDR.

But if you’re a gold investor, the exact method doesn’t matter. They all point to the same outcome: gold and all gold correlates from gold mines to silver are embarking upon an historic ride to the upside.”

Credits and full article here.

Singapore’s Economy Contracts Annualized 4.1% in Third Quarter


Hi gang, Patrick here from where you can find some of the lowest gold and silver prices in Singapore.

As many of you already know, I’ve been suggesting that if you really want to know what’s going on in the world and how it affects Singapore as far as economics goes, check shipping numbers.

Anyone thats visits our shop knows this when they chit chat with us. These are the numbers that absolutely matter to you and me. Regarding checking shipping numbers, remember, shipping numbers are a look into the future. And the numbers I suggest you check can be found at HARPEX.  HARPEX is the sister to the Baltic Dry Index.

Harpex informs you on consumer goods. If ships aren’t being loaded up with consumer goods it means net importers such as the US are slowing. It will also mean net exporters will slow. As such, everything slows.

As things slow, prices have to drop. Others will choose to devalue their currency to be competitive.  Manufacturing and petroleum jobs usually are the ones affected the most. Why? If no one is buying, shipping slows, and manufacturing slows. After all, why make things if there is no buyer? Petroleum slows because as mentioned, when prices drop revenues drop, profits drop. In addition, so much of the world’s products are petroleum based.

Therefore you, our customers and friends, we know you were well informed and were not surprised. Shipping numbers already foretold what is going to happen in Singapore and in many parts of the world. We at SilverAg are hopeful that sharing shipping insights in our chit chats at our shop helped you to make decisions and continue to help you make decisions that are best for you and your family.

On to the featured article.

Full article, credits, and video here.

Singapore’s economy contracted in the third quarter from the previous three months, according to an advanced estimate from the government, more signs that the Southeast Asian financial and trading hub is struggling in the face of a global slowdown.

Key Points

  • Gross domestic product fell an annualized 4.1 percent on a quarter-on-quarter basis, compared with a revised 0.2 percent expansion in the second quarter, the Ministry of Trade and Industry said in a statement Friday.
  • The median estimate of 14 economists in a Bloomberg survey was for zero gains in GDP
  • Compared with a year earlier, GDP rose 0.6 percent in the third quarter, slower than the 1.7 percent median estimate in a Bloomberg survey of 20 economists

Big Picture

GDP growth in the export-driven economy has been under pressure since last year, mainly due to a slowdown in global trade and lower energy prices hurting the city-state’s oil and gas services industry. Government measures to cool the property market and curb the intake of foreign workers are undermining profits in some key industries, while manufacturing is struggling to gain traction, Joseph Incalcaterra, a Hong Kong-based economist with HSBC Holdings Plc, said before the data was released. The economy expanded 2 percent last year, the slowest pace since 2009, and economists forecast even lower growth this year.

Other Details

  • The services industry, which accounts for about two-thirds of the economy, contracted an annualized 1.9 percent in the third quarter from the previous three months
  • Manufacturing plunged an annualized 17.4 percent in the period
  • The advanced GDP estimates only include data from July and August. The government is scheduled to publish final GDP data in November.

When you see this you know gold and silver are being manipulated. Buy it!

xe-001Hi gang, Patrick from SilverAg.

Like many of you, I check my currency convertor multiple times a day. As such, I’ve been noticing more frequently how so called “flash crashes” are happening.

More often I am seeing the gold silver ratio absolutely being changed. I’m seeing more frequently the price of gold and silver absolutely crashing for a split second.

In this snapshot, take a look at the price of 1oz gold compared to USD. Also, take a look at how much 1oz of gold can buy ounces of silver.

Other sources such as zero hedge will tweet these very same  flash crashes from time to time.

For some of the lowest gold and silver prices in Singapore visit

Why is this happening?

Well, I can only speculate. Perhaps a trader or banker might mislead the market by putting in a big sell order causing algos to react and sell pushing down the price of gold and silver. Then, this person or bank will buy the dip.  There are a lot more reasons why one would manipulate the markets. Euphorically, these people  doing this are called market movers. I personally would rather just call them criminals.

Make no mistake, gold and silver are on the up-trend and perhaps this is why there are more flash crashes that seem to be happening. Nonetheless, do not get discouraged.

For some maybe paper gold and silver is a better option if you just wish to earn money on silver and gold. For others that want to protect your money, keep buying physical and be thankful that these market movers which I choose to criminals are doing this… we can buy more at a cheaper price!

In the end, paper will lose and physical will win. Rest assured, you are doing the right thing by buying physical and accumulating metal. An alternative, set a goal. Set a goal of perhaps 100 ozs of gold or 5000 ozs of silver or whatever you are comfortable with.

Once you reach that goal don’t look back and have peace of mind. Comfortably go on with your life knowing that when the day comes when this all comes to head and gold and silver are in desperate need, you my friend were smart enough to have it. You my friend have put yourself in a position to take advantage of the opportunities ahead that will come to owners of physical gold and silver. In the end there will be people who have physical gold and silver, and people who don’t.

Have a great day and hope to see you at SilverAg soon,

Patrick  :)

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