Golden Rule – Why Beijing Is Buying
Thank you to CFS and Matthew (just 4 minutes later) for posting the link to this editorial under our interview with Chris Temple.
This editorial is written by former Fed Chairman Alan Greenspan. Mr Greenspan gives his opinion on gold and how he has seen central banks and governments debate whether to hold, sell, or accumulate gold. Some facts could be argued – such as the US holding the same amount of gold since 1976 – but the bigger picture of which countries/central banks have been selling and those buying is of interest. As CFS commented “Note what they do, not what they say.”
Anybody want to explain the movement in oil futures today?
Both WTI and Brent down heavily.
“Thank you to CFS and Matthew (just 4 minutes later)”
——
Ha Ha Ha Ha!!!! Too damned funny for words. He is the copy boy for God’s sakes. What else did you expect….maybe he would be first? I think 4 minutes late might be his record though. Is that why you pointed out his tardiness in copying the work of others? ………………ok……………I get it now……….Ha Ha Ha!
While China holds the world’s biggest foreign-exchange reserves, bullion accounts for 1.1 percent of the total, compared with about 70 percent for the U.S.
Thank You Dave!!!!
1953 was the latest audit at Fort Knox.
Small problem with your assertion……
You have evidence the gold is gone?………….No?…………. Case closed.
Yeah,I trust the Fed.
As honest as the day is long.
Which brings us to you…..
In other words, Dave’s assertion stands whereas yours is just invented stuff. Anyway, why do you care? You are Canadian.
I think there are some recorded evidence from the X SENATOR OF KENTUCKY about 1964, that a convoy of army trucks , left Ft. KNOX loaded with gold and silver headed to London. This is common knowledge, but, This is like who shot JFK………somebody shot JFK………but, Who really cares who shot JFK…….BUT, THE cover up does exist.
People hiding truth………..have something to fear…………..and the BANKSTERS HAVE SOMETHING TO FEAR.
The Singapore Exchange Ltd. (SGX), Southeast Asia’s biggest bourse operator, will begin trading a 25 kilobar gold contract next month as it joins other nations in the largest consuming region in a push for new price benchmarks.
In a joint press release, the International Enterprise Singapore, the Singapore Bullion Market Association, the Singapore Exchange and the World Gold Council said the contract, the first of its kind to be offered globally, underpins the creation of a centralized kilobar gold market, characterized by real-time transparent price discovery, daily expiration with physical delivery and robust verification of quality gold.
The launch will also be a significant step towards establishing Singapore as a regional precious metals trading hub, they added
By the way, our genius silver and gold promoting friend here who was pushing PSLV might not have noticed but it is down 19% this year already. Ouch……think that hurt? Well it is going to get a lot worse before it’s over.
Meanwhile, GDX and GDXJ both got taken to the woodshed today. Very painful to see. Looks to me like GDXJ is on track to get smashed to oblivion in the next few days. We shall see. Our good friend promotes that one too.
Careful who you listen too. Bad advice can cost a lot of money. But he has charts and graphs each day proving this or that theory. Golden crosses, Fibonacci levels, moving averages….
HA HA HA HA !! Trust a guy with an upside down chart to give you good information.
Will not buy gdx till well below 20.
GDX was at 20 and a quarter almost exactly a year ago. It looks certain we are heading there again in the near future. But it is horridly low for most people because that is also near the GDX price bottom from all the way back in 2008.
What comes next is the interesting question. Is GDX itself possibly signaling the point at which a stock market correction comes into play and thus it bounces hard off that floor? Or does it range trade for months on end until it burns out bulls and bears alike?
Most shocking…what if support is broken and then what does that really say about the entire gold resource sector? Probably one thing we will all agree on is that GDX is a buy again but it could be a sleeper for a few months. If it repeats last years performance it should take off like a hound right into the New Year.
Wonder where GDX & GDXJ will be when the gold price is the low $900’s ?
I wonder where they will be when the Suisse decide to back their currency with gold? Pity about the Libyan and Ukrainian central bank reserves.
f the Swiss vote “yes” the Central Bank will need to spend $50 billion to bring the reserve ratio up to 20%, which equates to 1,000 tons of gold. Many doubt the Swiss Central Bank could find that amount of gold in the open market at current prices.
http://www.bloomberg.com/energy/
look at today
Chinese Gold Demand Explosive
Published: 27-09-2014 16:50
Whilst western media are still under the assumption Chinese gold demand is declining, based on data from the World Gold Council and net gold export from Hong Kong to China mainland, in reality demand is extremely strong. As I’ve previously written, the lower the price of gold will go the more physical gold will be purchased by the Chinese people, and the price of gold has been dropping since mid August.
Wholesale demand, measured by withdrawals from the SGE vaults, accounted for an astonishing 50.3 tonnes in week 38 (September 15 -19), up 22.79 % w/w. Year to date SGE withdrawals stand at 1381 tonnes.
Because the SGE International Board started trading on September 18, I checked with the SGE if the total withdrawal numbers from week 38 include withdrawals from the International Board (IB) vaults in the Shanghai Free Trade Zone (FTZ). Yes, it does they told me, though “withdrawals from the IB vaults are insignificant at this point”, they added. The total gold volume traded on the IB was 122 Kg in week 38. It’s impossible to know, but if all buyers opted for withdrawal, we would have to revise total weekly withdrawals in the mainland to 50.1 tonnes.
Needless to say I kindly requested if the SGE could disclose withdrawal numbers from the Main Board (in the mainland) and International Board (in the Shanghai FTZ) separately henceforth.
Elevated withdrawals in the past few weeks have coincided with higher imports (that circumvented Hong Kong). The next quote is from Reuters:
The physical volumes have been high this month [September] compared to August. I would say imports could be at least 30 percent higher than last month,” said a trader with one of the 15 importing banks in China.
Another trader said imports will remain elevated all through the fourth quarter due to seasonal demand.
30 % higher imports in September compared to August are reflected in SGE withdrawals in the chart above.
Exactly one year ago I wrote my first analysis about the structure of the Chinese gold market and the relationship between Chinese wholesale demand and withdrawals from the SGE vaults. Since then this understanding, strengthened by more research and proof, has gradually spread through the gold space (thanks to Jan Skoyles, Willem Middelkoop, Chris Powell, Torgny Persson and many others). Additionally it has been noticed below the surface by investors, banks, and hedge funds world wide; often I get inquiries from professionals of all corners of the financial industry regarding the Chinese gold market. There is no doubt in my mind the true numbers on Chinese gold demand will eventually reach the mainstream media. A small preview was published on September 25 by CNC Asset Management; distributed by Scotiabank:
To understand China’s real physical gold demand, investors should simply look at the weekly withdrawals from Shanghai Gold Exchange vaults.
Let’s fast forward one week (withdrawal data always lags one week). The price of silver in London has dropped to $17.65 an ounce on Friday September 26 from $17.83 on Monday September 22. Remarkably the discount of Shanghai silver has stabilized over this period instead of declining. The trend has been a declining discount of silver in Shanghai (relative to London) when the silver price lowers, and vice versa. That trend seems to have been broken now. The discount of Shanghai silver – excluding 17 % VAT – closed at 4.8 % relative to London spot.
Silver on the Shanghai Futures Exchange (SHFE) remained in backwardation throughout the past week. Ag futures on the SHFE have been trading in backwardation for 37 days in a row (since August 6).
Silver inventory on the SHFE has dropped 9 % w/w, to 81 tonnes, the last data we have from the SGE is they hold 67 tonnes of silver inventory. I would like to stress that most physical silver in Shanghai is not traded over the SHFE or SGE but through the Shanghai White Platinum & Silver Exchange (WPSE). The SHFE and SGE are more for hedging and speculation.
Silver volume traded on the SHFE was up 190 % w/w, at 67,328 tonnes from 23,23 tonnes (transcending COMEX volumes). Volume on the SGE was up 284 % w/w, at 8,891 tonnes from 2,314. In the past week 44,459 tonnes of silver changed hands on the COMEX. The Open Interest (OI) on the COMEX dropped a little from 26,984 to 26,122. The SHFE OI jumped from 4,648 tonnes to 5,299. (all counted unilaterally, or single-sided)
Back to gold; the volume traded on the SHFE last week was 510 tonnes, on the SGE 192 tonnes changed hands of which 76 tonnes were physical products (the 192 tonnes of gold traded on the SGE excludes OTC trades – OTC data lags one week just as SGE withdrawals).
This next chart will be interesting to keep an eye on; the premium of gold on the Shanghai Gold Exchange (SGE) and the Shanghai International Gold Exchange (SGEI) relative to London spot.
Koos Jansen
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I am hearing these missiles will be deployed close to the Philippines: and in the Gulf of Arabia.
http://www.wantchinatimes.com/news-subclass-cnt.aspx?id=20140929000103&cid=1101&MainCatID=0
Another article about China’s gold strategy
https://www.bullionstar.com/article/china%20aims%20for%20official%20gold%20reserves%20at%208500t
Just like I said, the period that China is on vacation can be tough. Today is the first day of it.
Lawrence and CFS and a few others:
I barely have time to read your hotlinked articles let alone find them. Keep up the good work and hats off to big Al for providing this “go to” service.
Agree Dai Uy
The Chinese are buying gold and silver because they are smart and are more than just a nation of rice farmers and laborers.
I think not because of smartness. I think the need both. Silver is for industry and gold to prevent US financial attack. US is brutal to its enemy even to its allies if it feels threatened
No Steven,
The ‘smart’ Chinese (as you proclaim) diversify,
Thats why they are buying up worldwide real estate, stocks, businesses etc.
The gold price will rise when Western demand returns, not Asian
……look no further than the goldbugs screaming of insatiable Asian demand…yet the gold price continues down, down, down !
They couldn’t make this sh#t up if they tried. ….oh ! ….but they do…LOL.
The last time I looked the price of metals was defined by Western Banks beholden to the Federal Reserve which has a small interest in fiat supremacy.
Naked shorting and derivatives pricing control will be another footnote in the Anglo American Empire.
Matt……..you got that right……………
Heard it all before….. *YAWN*
YAWN………….YA WIN…………you forgot the I……..
Man what time is it in Africa……………are you up feeding the chickens or what…….
Last para: ‘ they buy in preparation for a new monetary order, not as a trade for profit…’
The USAGold.com publication above discusses the Dragon in the room. I think the elephant should be very scared of the dragon’s breath!
The attacks on $1200 mark have failed so far. Is this rise a retreat or regroup? In the last three years’ bear run, bears have succeeded on taking out all the supports which are close in-sight. I think they may do it again even with tremendous difficulty. What does the TA say?
Lawrence this is a cat bounce imo. We will break 1200 100%. They have many stop losses they want to trigger right below the triple bottom. HUi index is indicating that the 192 gap which is inches away will get triggered. You don’t move down this far and not cover it.
I feel you are right. The target is to push below 1180 and trigger all stops under there. I still suspect whether they are capable to take price to $1000. They need too much physical gold to accomplish that goal. Eastern governments might be laughing with the opening of several physical exchanges. I also don’t feel there are any speculator left at that level. Most people bought way above that.
With Q3 now behind us, we just might get some surprises in several sectors as money gets repositioned.
http://www.thedailybell.com/editorials/35691/Paul-Craig-Roberts-More-Washington-Lies/
A different view about Hong Kong unrest.
CFS Is Paul CR prone to exaggerate? Like the way he says ISIS is no more than a U.S. contrivance that has ‘out-foxed their handlers’? Be interested in your opinion.
First I admit that I am pro-democracy and anti-Chinese government and governments in general. I participated in 1989 movement. I support the reasonable level of unrest to deter government from doing whatever it wants.
I also support Hong Kong students’ request for democracy, which never have got even under British rule. Elections only happened on Mainland Chinese watch, kind of weird. However, the timing and trace of evidences does suggest the CIA involvement.
http://www.washingtonsblog.com/2014/09/hong-kong-protests-mixed-blessing.html
This is not an isolated incident and it is not the most effective way to create trouble for China but it is the only way left.
US strategy to deter China is many-folds. Nobody believe US is not trying to undermines its enemy, right?
First, US has been systematically incubate pro-American force inside the communist party and infiltrate into the intellectual inner-circle of policy makers by bribery and funding for research and other projects. A lot of social science professionals in China are on the side of US due to this long term strategy. A lot these people are even off-springs of high rank leaders. My ex GF, who is the think tank for the government, proved it to me it is true.
US has been attempting regime changes for China’s close allies like North Korea, Pakistan and Burma and they have limited success since these countries face threats from the West and regime changes do not impact their pro-China stands.
US also back SE Asian countries to challenge China for South China Sea territorial dispute and hinting that US will back them with 7th fleet.
Japan and China conflict started with Japanese desire to weaken China but it dares not to do it without US support. The trigger event was the announcement of nationalization of Senkaku islands by Japan, which is a disputed territory. This conflict is fading away due to the restraints from both sides.
US support the Tibet independence which has no chance of success since except a few extremists, almost all Tibetans recognize their Chinese identity and very happy to see the rapid improvement of Tibetan economy by influx of goods, industry, railroads and mass transportation from inland.
US also support XinJiang Independence movement. Due to the racial composition of this western province, fair amount of people do not recognize their belongs to China and tried to break away from China for the last few hundred years. This is a Muslim region and tied closely to the terrorist organizations to the west. A lot of people there joined Afghanistan troops and organizations like ISIS to fight against US invasion. US have released a lot of these POWs as long as they promise to go back to China to carry out anti-China activities. There have been many terrorist incidents in China during the last few years and people are very tired of it, but government has been exercising restraints from launching major military actions like what happened in 1880s and the early 1950s.
There are also comments from Overseas Chinese investment forum (which is blocked in China since its anti-government bias), where almost everyone assumes that the demonstration is supported by CIA.
http://bbs.wenxuecity.com/finance/3507317.html
Anything wrong with this post? Why so long
One thing about….CR…….I wish he would ditch the picture of himself and the cats….
IF YOU are going to take a picture of yourself and a cat,,,it should be a lion, or a tiger…….
not a pussy cat………….
I agree that PCR tends to exaggerate, but I listen to someone that has as significant a bio as his. He, in my mind, similar to David Stockman, but more prepared to go out on a limb.
The admitted stirring up unrest in Ukraine by Victoria Nuland points to a known previous example of US meddling, so it is not beyond the pale for it to be possible to suspect the US to do something similar in Hong Kong.
As regards ISIS, it is clear that Obama follows an ideology, not a pragmatic foreign policy. It is reported that over the past 3 years Obama has not even bothered to attend some 60% of his (supposedly) foreign matters briefings. He has simply been out to lunch (or more likely golfing).
Finally, I believe the authorities in Hong Kong are in total violation of the treaty that handed back Hong Kong a decade ago, so the citizens have a just cause.
I also remember the abhorrent treatment of citizens in Tienanmen Square.
I have a comment above but it has been in moderation. Not sure why.
If you’ve added more than one link to your comment, it will go into “moderation.”
Oh I had two. Someone accused me not having links so I Am adding reference now
No, I accused you of writing Chinese sponsored propaganda.
Thanks!
Moreover China is buying not only gold and silver, but physical resources all over the world.
They have been buying many undeveloped resources in Africa and by building infrastructure they have gotten not only the resources, but a favorable review of “not being a plundering Empire nation.”
I personally think that review is an errant early judgment, but time will tell.