China currently has one of the strongest economies in the world, but that wasn’t always the case.
In the 1970s, China’s economy was struggling because China wasn’t a member of the World Trade Organization and the country wasn’t exporting goods at the rate it does today.
To improve its economy, China invested in gold. At the time, the country could not afford to acquire gold from other countries because it had very small foreign exchange reserves, which is why China decided to develop its domestic mining industry.
According to Bullionstar.com, China established the Gold Armed Police to develop its domestic mining industry.
Since the Gold Armed Police was established in 1976, China’s domestic mining output grew by 2,964 % from 1976 until 2014.
Data collected from the China Gold Association show that the increase in the country’s domestic mining output is due to gold exploration by the Gold Armed Police.
Before 2002, the Peoples Bank of China had the monopoly on gold trade in China. The PBOC set the domestic gold price and distributed gold to a limited amount of vendors or kept the gold for its official reserves.
Since 2002, the PBOC and the Gold Armed Police have worked closely together.
The Gold Armed Police not only explore the mines, they are also responsible for guarding the mines. It is the only military unit of its kind in the world today.
In 2014, Gold market insider James Rickards wrote a book titled “The Death of Money.”
In his book, Rickards said, “A senior manager of G4S, one of the world’s leading secure logistics firms, recently revealed to a gold industry executive that he had personally transported gold into China by land through Central Asian mountain passes at the head of a column of People’s Liberation Army tanks and armored transport vehicles. This gold was in the form of the 400- ounce “good delivery” bars favored by central banks rather than the smaller one- kilo bars imported through regular channels and favored by retail investors.”
While Rickards wrote that the convoy was led by the People’s Liberation Army, it is very likely the Gold Armed Police also participated in the transport because the gold was going to PBOC vaults.
According to The China Times, the Armed Gold Police has found more than 1800 tons of gold so far, which has helped China become the world’s largest gold-producing country.
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