North Korea sells gold in sign of imminent economic collapse.

North Korea has reportedly began selling large amounts of gold to China in order to avoid an imminent economic collapse. According to South Korean newspaper Chosun Ilbo, North Korea sold more than 2 tons of gold last year to raise around $100 million. North Korea is estimated to have around 2,000 tons of gold reserves worth over US$8 billion.

The decision to dispose of North Korea's gold has sparked fears it could be trying to ward off an "imminent economic collapse". Such a move clashes with founding leader Kim Il-sung's order to never sell the country's gold.

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Chances are they have either significantly more, or significantly less than what's stated. Only a few over there really know.

Anyways, Ive recalled hearing many times over the years they were to never sell any gold for any reason, maybe not even to save the country but desperate times call for these types of measures. I'm still unsure how they stay afloat, even with slave labour.

Alternatively, they may be cashing out in advance, because things are heating up in the region again with China/Japan and want to make sure they have liquid cash.

First the north Koreans admit unicorns are real and now they are selling their gold???? Those wacky Koreans......I never know what their doing.

reply to post by CALGARIAN


Well they still have 1,998 tons of gold....I am sure that is still enough to help.....Why are people in a panic like they just sold it all or something?

That is .001% of their gold and that is considered "large amounts" of their reserve?

Everyone sell sell sell!! The Koreans are selling, it must mean imminent danger to the gold market!!!

why when Canada, USA, etc,, invest in China,,,it is "smart business",,, ( my own personal opinion is not relevant )
but Korea,,invest's it resources in China, and it is some omminious threat?

Maybe it was too pay for the "PORN Party",,telephone Bill.
His Uncle's,,,,??

They should use that money to feed their starving children, then maybe they would have some decent workers for the next generation.

Also, maybe they need some start up cash for this endeavour:

TRILLIONS in rare earth minerals:
www.mining.com...

reply to post by CALGARIAN


North Korea has reportedly began selling large amounts of gold to China in order to avoid an imminent economic collapse. According to South Korean newspaper Chosun Ilbo, North Korea sold more than 2 tons of gold last year to raise around $100 million. North Korea is estimated to have around 2,000 tons of gold reserves worth over US$8 billion. The decision to dispose of North Korea's gold has sparked fears it could be trying to ward off an "imminent economic collapse". Such a move clashes with founding leader Kim Il-sung's order to never sell the country's gold.

This is all very misleading and doomy IMO. Headline doesn't marry up with the body of the article.
Key words are REPORTEDLY, LARGE, IMMINENT, ESTIMATED, AROUND, SPARKED, FEARS, COULD, and TRYING.
Reportedly means just a rumour at this stage, large means one thousandth, if a collapse was imminent, wouldn't you invest more than 1/1000th of your reserves to "ward off"? Estimated is just a guess, around is again a guess, sparked fears is doom porn, unless people are running around in the streets hands in the air yelling that the world is going to end. Could is another word for maybe, maybe not, and trying suggests an effort is being made, albeit not a very strong one.
It is typical journalistic talk, which if you break it down doesn't really mean a lot, except some shiny stuff was sold to the big boy next door to raise a few quid. And that's only if reportedly means "has".
It would also be incorrect to say that NK gold has been "disposed of" A fraction equivalent to 1/1000th of it has "reportedly" been sold over a 52 week period, in exchange for currency or similar. I dispose of bog roll down the toilet, and I don't expect a little chute to give me money in return for what I flush down there.

reply to post by CALGARIAN


I thought CHINA already had the RARE EARTH,, metals market,, sewn up??

that stuff in the new light bulds that EVERYONE, must buy,,guess where the rare metal for those "ECO FRIENDLY",filaments come from,,,CHINA. (irony )

in responce too definition of "sewn up".

Kim jong Jr, seems to be doing a few things different than pappa. Removing the unk Jang Song-thaek, in a public forum. And China and the south aren't thrilled, especially China. Song, was the go guy for a lot of deals... So, we shall see how plays out. Is there a test launch going to happen again? Economic aid, per collapsing economic issues. What's their plan, gotta have a plan, right.

reply to post by Mufcutcakeyumyum


the 2 tons of Gold at todays price's,,would just be Collaterall on a much larger Loan???, would it not?

and would that loan be in Chinese or American $'s?
Can always track the finacial records,,but i think,, NSA, is busy,, lol

2 tons of gold,,,were is ocean's eleven now??? lol

reply to post by BobAthome


Well, according to the Australians, this is what a tonne of gold looks like:



Now, if that was a gold foil covered chocolate coin I would be getting excited!

Man that's a chunk of gold. How thick? I need that!

catfishjoe
First the north Koreans admit unicorns are real and now they are selling their gold???? Those wacky Koreans......I never know what their doing.

Don't forget "fan death". Google it.

If they collsape the queation is will they die quietly or go for one big all or bust blood bath?

reply to post by CALGARIAN


The International Financial Statistics March 2013 the world official gold holding doesn't list North Korea at all, not uprising I guess. What it does say (by reference) is that if NK has 2000 tonnes of gold them only 5 countries on earth have more gold and that NK has almost twice as much "official gold as China has (#6.)

Somethings wrong with these numbers.

ZeroHedge

reply to post by MystikMushroom


I just have to clarify that "fan death" is a SOUTH Korean phenomena... North Koreans experience a more general death, dubbed "death death" when morbidity is caused by anything other than the elapse of time or disease.

"Death death" in N. Korea is generally attributed to not worshiping the Dear Leader in a fervent enough manner, rather than the lack of food, shelter and x-boxes.

reply to post by CALGARIAN


Hmm...that doesn't make much sense. So they got 100Mil for 2 tons but can only get 8Bil for 2000 tons? My math may be off a little but wouldn't that equate to 100 Bil for 2000 tons? Would hate to be the one in NK that made THAT accounting mistake...

I'm no economist but why, if the economy is about to collapse, sell your gold for cash? Cash would be worthless in an economic collapse, right?

If a collapse was imminent, wouldn't they hoard the gold? Sounds to me like China told them that if they want food, they need to pay for it.

Feltrick
I'm no economist but why, if the economy is about to collapse, sell your gold for cash? Cash would be worthless in an economic collapse, right?

If a collapse was imminent, wouldn't they hoard the gold? Sounds to me like China told them that if they want food, they need to pay for it.

Wh is everyone here misinterpreting the article?

NK is facing economic collapse (as theres little economy there to start with), where exactly does the article mention the global economy??

Really strange how some here seem to read what they want to read...

Nk cant pay in gold obviously, so they cash some of it...