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Gold commentary, where are the ETFs and metal heading

October 8, 2014

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28 Comments
    Oct 08, 2014 08:29 AM

    China gold market.

    Here is a widely quoted article from people.cn. It summarized the recent market in Chinese retail gold market. I tried to use google translation but result seems very confusing.
    Here I have some summary:
    1. The title is called gold Jewelry and investment – contrast of fire and ice.

    2. The recent national holiday week (Oct 1-Oct7) has seen gold demand blow off compared to early this year.

    3. At same time, bullion investment has seen big drop from last year

    4. The main store Caibai (间菜百公司) in Beijing has seen the 25% increase of sale compared to last year same period

    5. The first six moth of this year consumers have consumed 569.45 ton of gold and it dropped 19.38% from last year (last year had a spike high due to gold sudden drop in April). Among it, jewelry consumption is 426.17 ton (increased 11%) and bullion 105.58 tons (decrease of 62.13%).

    The above numbers are all consumer retail level which does not include any official sector purchase. The pickup in jewelery demand is very strong recently.
    http://finance.sina.com.cn/money/nmetal/20141008/025020476973.shtml
    http://finance.people.com.cn/money/n/2014/1008/c65772-25790946.html

    Oct 08, 2014 08:29 AM

    Your comment is awaiting moderation.

    China gold market.

    Here is a widely quoted article from people.cn. It summarized the recent market in Chinese retail gold market. I tried to use google translation but result seems very confusing.
    Here I have some summary:
    1. The title is called gold Jewelry and investment – contrast of fire and ice.

    2. The recent national holiday week (Oct 1-Oct7) has seen gold demand blow off compared to early this year.

    3. At same time, bullion investment has seen big drop from last year

    4. The main store Caibai (间菜百公司) in Beijing has seen the 25% increase of sale compared to last year same period

    5. The first six moth of this year consumers have consumed 569.45 ton of gold and it dropped 19.38% from last year (last year had a spike high due to gold sudden drop in April). Among it, jewelry consumption is 426.17 ton (increased 11%) and bullion 105.58 tons (decrease of 62.13%).

    The above numbers are all consumer retail level which does not include any official sector purchase. The pickup in jewelery demand is very strong recently.

    http://finance.people.com.cn/money/n/2014/1008/c65772-25790946.html

    Reply to this comment

      Oct 08, 2014 08:55 AM

      Hi Lawrence. Your initial comment was moderated because there were 2 links placed in it. It is now live above this comment.

      Thanks for posting those articles. I will take some time to read them later today.

        Oct 08, 2014 08:36 PM

        Cory, please delete the second. Thanks.

    Oct 08, 2014 08:37 AM

    So rates to be kept at zero for… months… years… seems like Gary’s remarks to buy shares is spot on… no chance of crash now…

    Oct 08, 2014 08:39 AM

    FED minutes came in, big spike in gold. Looks like sell the rumor, by the fact activty.

    Oct 08, 2014 08:41 AM

    The world economy is in trouble, and the dollar was to give up. Stocks gonna crash and gold will be the safe haven…

    Oct 08, 2014 08:45 AM

    Gary,

    Does the Fed minutes about interest rates change your view about gold and the metals?

    As I write gold is climbing as is silver and also GDXJ.

      Oct 08, 2014 08:20 PM

      Daily esditor II al com ok ng up on this Bob.

    Oct 08, 2014 08:58 AM

    Gary, does your cycle theory works best in less precarious more “normal” economic times.

      Oct 08, 2014 08:54 PM

      When things get extremely volatile nothing works very good and that includes cycles.

        Oct 08, 2014 08:19 PM

        Gary you have been very strong and committed to your views with direction of gold/miners in general. Can you please tell if your still on the sidelines or have you bought any miners?

        Just curious, you may be missing a great opportunity to make money.

          Oct 08, 2014 08:42 PM

          Listen to everyone Glen. Even Gary does!

    Oct 08, 2014 08:04 PM

    Gdx appears to be breaking out. Up 5.8% and could hit 8% + today if gold breaks out to the 1220 to 1230’s today.

      Oct 08, 2014 08:44 PM

      What accuracy! GDX just hit 8.2% up and gdxj 9.8%. A major key reversal.

    Oct 08, 2014 08:06 PM

    Paul L. I think you meant to say when not if. Who knows though. That 1220-1230 is a bit of a battle zone.

    Oct 08, 2014 08:15 PM

    Pierre Lassonde differs with your opinions on the right time to invest in highly speculative explorers. Pretty sure his investment timing is dialled.

      Oct 08, 2014 08:15 PM

      sorry meant to put this under Doc’s.

    Oct 08, 2014 08:45 PM

    Gary, interested on your thoughts on today’s trading volume in GDX & GDXJ. I recall you waiting for a big volume event to signal a reversal prior to the previous lows in late May. Also showing a substantial “outside day” in both today with lower low and higher high than the previous session(s). I know Chris Temple was the one that previously brought this up as an indicator of a change of direction.

    Ken
    Oct 08, 2014 08:00 PM

    bought hard ont he open today. Index funds, GDX, all got bought…

    Like clockwork the big money bought the weak hand panic this am…..

    One could smell the blood this AM…

    That is of course until the whipsaw happened

    Ken
    Oct 08, 2014 08:04 PM

    BTW

    gold stocks always sell off with the markets.. They are stocks folks which are part of the stock market….

    As index etf’s are sols they sell their stocks as well folks…
    That is why the next crisis will be an ETF sell-off event IMHO>>

    Ken
    Oct 08, 2014 08:05 PM

    That low yesterday was a stop attack IMHO…

    I bought hard every large gold major….

    Ken
    Oct 08, 2014 08:07 PM

    the gold stocks confirmed the bottom this PM by the way. IMHO

      Oct 08, 2014 08:24 PM

      Ken,

      Could you please respond to my question.

      How much legs does this rally in gold/miners have? Do you see it turning and heading back down? Are you a seller tomorrow or will hold?

      Thanks..Some guys have tendency to post after the fact.. Not saying you are one but open transparency in my books get kudos. Let us know what you are doing today/tomorrow..

      Thanks

    Oct 08, 2014 08:12 PM

    I concur….. and it’s about time!