China's gold purchases increased a record 41% last year...
The Gold Shares Exchange Traded Fund (GLD) dumped 500 tons of gold onto the market last year… and China bought as much as they could... 1,176 tons, to be exact.
Global investor Jim Rickards says, "Gold purchased by the Chinese will not see the light of day again for the next 300 years… and is not available for trading."
You see, there's 170,000 tons of gold in the world… but not all of it is traded. The traded gold is known as the "floating supply," and it's this gold that determines price.
To squeeze the gold market, you don't need to control the total supply of gold... you just have to buy up the floating supply. And China is doing just that.
Rickards says this scenario could cause gold to increase fivefold in just three to five years...
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