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Is Asian gold demand really slipping so much?

August 26, 2014

I always want to post both sides of the gold demand picture. This article from Mineweb presents a case that demand in China for gold has slipped but not nearly as much as the mainstream media would like us to believe. While we will never know the exact demand out of China it is clear that this year’s demand has fallen compared to the prior year. Considering the prior year’s demand was through the roof a drop should have been expected.

Click here to read the full article.

Discussion
37 Comments
    Aug 26, 2014 26:39 PM

    On the subject of the ISIS thing, isn’t it a strange coincidence that the ISIS situation blew up as soon as the USA started talking seriously to Iran and they made a kind of an agreement over nuclear program and started recognizing each other?
    Seems to me the USA is actually reversing its 15-20 year policy of Clean Break and withdrawing from the scene in the Mid-East and the Saudis are sensing that the USA is going to pull the plug on them and at that moment, the ISIS problem explodes onto the scene. Strange coincidence, heh?

    Aug 26, 2014 26:59 PM

    Cory, China import their gold DIRECTLY from Beijing, so it doen’t pass thow regulators. Read this please…
    http://www.reuters.com/article/2014/04/20/china-gold-idUSL3N0N911Z20140420

    Aug 26, 2014 26:14 PM

    Well US demand for gold and silver is obviously down as premiums are as low as I can remember over the last 50 years.

      Aug 27, 2014 27:33 AM

      I know! I couldn’t believe I was seeing premiums of just over 1% on 1 oz bars. I snatched some up (my first gold bullion buy ever).

    Aug 26, 2014 26:25 PM

    Don’t forget to visit. … KINGWORLD NEWS BLOG

    Rick Rule just gave an interview.

    James Dines is very bullish gold in his interview.

    China has put a floor under the gold market boys and girls.

    SOMETIMES YOU HAVE TO GO OUT ON A LIMB. you know why ?????

    $$$$$$$$$$$$$$ THATS WHERE ALL THE FRUIT IS $$$$$$$$$$$$$$$$$$$$$

    and a little bit of luck don’t hurt either… ; )

      bob
      Aug 26, 2014 26:49 PM

      Always good to here from Jimmy D, but dang he’s been around the block a few times

      Aug 27, 2014 27:31 AM

      I just saw the article about China’s put floor on gold. That’s pretty interesting. It was an interview with Leeb, not Rick Rule though.

    bob
    Aug 26, 2014 26:47 PM
      Aug 26, 2014 26:22 PM

      No relation to John McCain.

    Aug 26, 2014 26:04 PM

    Jimmy D….is a good man. He’s the Original Gold Bug.

    The guy is a legend and very bullish gold.

    Excellent track record too.

    A lot of bang for the buck with Jimmy.

    He calls it as he see’s it. Major ching $$$$$$$

      Aug 27, 2014 27:22 AM

      Heavy, I too go to king’s site… But let’s face it, it is totally one sided. Great for a lift, but that’s about the end not it. As some say they are due to be right at some point but fighting the downtrend will hurt the pocketbook.

        The metals are the most hated investments. Buy when there is blood in the street. Be early, sit tight. Buy when everyone else hates it, and it is cheap. There is only one direction to go when you are on the bottom. OR , at least that is what “they say”.
        But, time is on your side, when flush with cash, and time to spare. The big boys have plenty of cash, and time is on their side, and are going to make another fortune from weak hands………..The strong get stronger, and the weak need help. Mental and metal strength is required at this stage of the game. I think we are at the BOTTOM.
        To much negative news, good for a turn around………..OOTB

          Gentlemen…………stay strong in the Lord,……..everything else is BS., but , you guys already know that…………BS……BRILLIANT SUNSHINE

        Aug 27, 2014 27:29 AM

        Sometimes Bobby.

        With all these analysts anytime…anywhere we must read between
        the lines or if listening same thing.

        James Dines or Rick Rule are shooting straight. Its up to you ; )

    Aug 26, 2014 26:20 PM

    I think Peter nailed it with his link above re: multiple points of entry and increased opacity in reporting of Chinese gold acquisition. There is no reason to believe that the Chinese and others are not continuing to de-dollarize, and in fact every reason to suspect that their measures are accelerating, particularly in light of recent geopolitics.

    On a related note, it is interesting to see that Shanghai silver warehouse is going to be completely empty sometime before the end of this year if stocks continue to drop at the present rate (234 tons to 148 tons from start to end of July). Somebody is vacuuming up every ounce they can. Rgds

      A few months back, …there was a report, that China, had lent out their silver ten years ago………and now, wants it back. Silver, is cheap, and needed for industry. Just a matter of time……..prices are not going to stay down. In two years silver will be over $50., just way to much paper printing. EU, is going into full swing, France, is needs to print, just to keep the peace.

        take out …is…..

          Aug 27, 2014 27:04 AM

          SIlver’s money characteristics have been depleted completely and some due to the dumping of 20 billion ounces by governments since 1960s. China and India have some left and all the other countries have sold out their reserves. China was aggressively selling silver to the world market from 2000-2008 because of its agreed condition of joining WTO. It stopped in 2009 due to some reasons. It could be that they have sold out or its own electronic industry needs too much of it. Current major trend is solar usage of silver. The limited amount of above ground silver used to be a limiting factor for solar industry. The improvement of technology has drastically cut down the silver demand per unit solar power but solar has grown many times, which still requires an increase amount of silver. China (Japan, Germany, India as well) has three choices – solar, nuclear and cutting down energy use. Unlike US, which has a lot of natural gas for power generation, China does not have enough natural gas. Chinese natural gas is more for the chemical and fertilizer industry. Some is used by households.

            Aug 27, 2014 27:19 AM

            20 billion ounces?…… Billion?….probably not eh.

            Aug 27, 2014 27:45 AM

            It is not very clear on this. There have been ~50 billion ounces ever mined. I saw a document that said that only around 60% left, most of it as coinage and government reserves. It should be over 12 billion ounces minimum with western governments after the coins were melted down in the 60s. They have then announced that they have sold all their silver reserves in early 2000. There is no silver in the books of central banks except in India and China but China sold silver aggressively in early 2000s. The biggest surplus of silver came as coin melt since all the coins over a dime contained 90% silver. When this was dumped on the market, it suppresses the price. It is thousand years’ left-over surplus dumped on the market during 30 years. No silver mine made money before 2008. So 20 billion ounces might be high but 12 billion ounces minimum. Currently, world mines produce 700 million new ounces a year and ~200million is recycled. In 70s and 80, world only produced 200 million ounce a year. Now nearly all the silver produced is consumed with small amount left for investment.

            Aug 27, 2014 27:59 AM

            Million ounces is significant for gold not silver. It was billions. I think US had 3-4 billion onces in the 60-70s. The recycled silver from manhattan project alone was over 1 billion onces.

            Aug 27, 2014 27:00 AM

            Now the world has more gold in bullion form than silver. I think it is accurate.

            Aug 27, 2014 27:39 AM

            FWIW:
            In the nearly three decades since passage of the Silver Purchase Act of 1934, the annual demand for silver bullion rose steadily from roughly 11 million ounces (1933) to 110 million ounces (1962). —wikipedia
            By 1955 the national silver stockpile was nearly 3 billion ounces, far and away the largest single holding of silver ever accumulated in the history of the world.
            —http://www.onlygold.com/articles/ayr_2007/A_Modern_Silver_Story.asp

            Aug 27, 2014 27:19 AM

            Thanks Mathew, I believe that the three billion is only the reserve in US, which does not include the coin melt after 1960s, Europian countries and China. China also got large stock pile since all the money before communist took over was either silver coins or gold certificates (Jin Yuan Quan). The gold certificate became worthless since old government shipped all the gold to Taiwan. Communist government confiscated silver by replacing silver coin with paper currency. It was in 1970s my parent sold most of my grandparent’s silver coins to make the ends meet. In the early 2000s, China dumped some where 6000-10000 tons a year (I forgot where I got it, it is in that order) on COMEX by agreement with US as a condition to join WTO.

            Aug 27, 2014 27:21 AM

            It may not include Manhattan project’s silver either since the project was sitting there for a long time.

            Aug 27, 2014 27:44 AM

            Lawrence, I agree. In fact, 20 billion ounces wouldn’t surprise me.

    CFS
    Aug 27, 2014 27:51 AM

    http://www.nytimes.com/2014/08/27/us/politics/obama-pursuing-climate-accord-in-lieu-of-treaty.html?_r=1

    He has a pen and a will to disenfranchise Congress and evbery American voter.

    Aug 27, 2014 27:22 AM

    Financial Sense – Jim Puplava -America is great! (yes it is).
    http://www.financialsensenewshour.com/broadcast/fsn2014-0823-2.mp3

      Aug 27, 2014 27:52 AM

      Not certain why about Puplava’s 180 degree turn. He used to point out the problems in the system and now he has full faith in the economy. Go figure. He may consider that QE and 0 interest rate normal SIX years after the last recession. It is historical. Somebody must be crazy. Either him or his oponents.

        Aug 27, 2014 27:31 AM

        He’s been compromised somehow. By whom? The Usual Suspects. For what purpose? The Usual Reasons. Everybody has their price. Sometimes that price isn’t expressed in terms of money, if you know what I mean, and I’m sure you do.

          Aug 27, 2014 27:35 AM

          Maybe his is bought or he is influenced by Martin Armstrong. I am not sure. I still subscribe to his broadcast.

          Aug 27, 2014 27:47 AM

          Provisions in the Patriot Act could probably compel anyone to cooperate… national security ya know.

            Well,,,,,now that is a good one on PUPLAVA………conspiracy theory……manipulation, who is next………………THE BIG OWL…………..

            Aug 27, 2014 27:54 AM

            haha, maybe some day we have to see Big Al in prison. Cory might be able run back to Canada.

          Aug 27, 2014 27:00 PM

          I think that he has a good team of researchers, does not think with his heart (Al), and has seen the light. Also he lives in rancho Bernardo, has an office in LA Jolla, condo in Coronado and a yacht in SD harbor. He rubs elbows with his contemporary 1%ers. He still owns gold but thinks it will not move again for years.