Good post as usual VHF. Sinclair however doesn't believe that China operates this way. Usually once they announce something it's already a done thing.

"Dear Friends,

A tip of the hat to CIGA “MD” who supplied this link to the English version of Russia’s Pravda.

I have no way of confirming the accuracy of the report but perhaps this is what put such a fire under the gold market today. It does seem strange to me to read of China announcing their intentions before hand in such an obvious fashion however as they are generally quite secretive about their buying or selling until after the fact. Besides, if news like this was confirmed, it is not hard to understand how that would just about guarantee them a much higher purchase price unless of course the IMF had already agreed to sell them the gold at a predetermined level.

Either way it serves to underscore the fact that the Asian Central Banks are still wanting to buy gold, assertions by the plethora of gold market analysts here in the West who erroneously interpreted the original news about the IMF sale as a sign that demand from these official sources was waning. As I said then and will say now again, Asian Central Banks have already made quite clear their interest in acquiring gold to diversify their reserves. They are not going to stop doing so because a Prechterite shows them an Elliot Wave chart that looks like a mountain range somewhere in Tibet.

The East has a history of respect for the yellow metal unlike the West which in enthralled with paper slips printed with ink which they seemingly increase with reckless delight."

Later