Silver Bars Being Secured By HSBC – Buy $876 Million Worth From Poland

HSBC has quietly moved into acquiring large amounts of silver bullion. The bank has secured another deal to buy silver bars from KGHM which brings their total purchases of silver from KGHM alone in the last 12 months to $876 million or PLN 3.65 billion. KGHM is one of the largest producers of silver in the world and is the second-largest producer of refined silver in the world. They produce silver bars registered under the brand KGHM HG that are attested to by “Good Delivery” certificates issued by the London Bullion Market Association and the Dubai Multi Commodities Centre. Listed metals producer KGHM signed an estimated PLN 1.67 billion deal on 2013 sales of silver to HSBC, KGHM said in a market filing yesterday. The deal puts the total value of deals between KGHM and HSBC in the last 12 months to PLN 3.65 billion or $876 million, the filing read.  KGHM is one of the largest companies in Poland and one of the largest mining & metallurgy companies in the world.

 


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From Goldcore:

Today’s AM fix was USD 1,692.25, EUR 1,268.84, and GBP 1,066.19 per ounce.
Yesterday’s AM fix was USD 1,692.50, EUR 1,268.17, and GBP 1,068.36 per ounce.

Silver is trading at $32.33/oz, €24.32/oz and £20.46/oz. Platinum is trading at $1,700.50/oz, palladium at $725.00/oz and rhodium at $1,200/oz.


Cross Currency Table – (Bloomberg)

Gold climbed $6.40 or 0.4% in New York yesterday and closed at $1,690.50/oz. Silver slipped to $31.79 in London, but it then climbed to a high of $32.34 in New York and finished with a gain of 1%.

Gold hovered near a 1 month high on Wednesday supported by loose monetary policies of central banks. There are renewed hopes regarding U.S. debt ceiling talks and the U.S. House of Representatives plans to pass a bill on the almost 4 month extension of the borrowing limit.


Total Known ETF in Silver, Jan 2008-2013 – (Bloomberg)

Silver has now rallied for 7 days due to the flood of inflows into silver backed ETF’s and investment demand for coins and bars internationally. Analysts polled by Reuters expect silver to rise in 2013.

Holdings of iShares Silver Trust, the world’s largest silver ETF, stood at 10,689 tonnes on Jan. 22, up 604.9 tonnes, or nearly 6 percent, from the end of 2012.

By comparison, SPDR Gold Trust, the world’s top gold ETF, saw an outflow of nearly 15 tonnes so far this year.

This has helped silver prices rally over 6% so far this year and 4.5% last week alone. The close above $32/oz yesterday was bullish technically and could lead to silver testing the next level of resistance which is at $34/oz.

The U.S. Mint has sold out of 2013 American Eagle silver coins and will resume sales the week of January 28 when the US Mint said inventory would be replenished.

Chinese silver turnover surged to 2,200 tonnes on Friday and analysts say Chinese investor’s interest in silver is continuing to rise as many are looking at silver as a cheaper alternative to gold.

Hence, trading volumes for the precious metal on the SGE soared in 2012.

Silver bullion imports by China remain robust too. Silver imports were 228 metric tons in December, according to data released by the customs agency.

There are also rumours that Apple is experiencing delays in producing the new iMac due to difficulty in sourcing industrial silver in volume in China. More silver than is typically used is utilised in the new 21.5″ Apple iMacs.

HSBC Buying KGHM Silver Bars 

HSBC has quietly moved into acquiring large amounts of silver bullion.

The bank has secured another deal to buy silver bars from KGHM which brings their total purchases of silver from KGHM alone in the last 12 months to $876 million or PLN 3.65 billion.

KGHM is one of the largest producers of silver in the world and is the second-largest producer of refined silver in the world.

They produce silver bars registered under the brand KGHM HG that are attested to by “Good Delivery” certificates issued by the London Bullion Market Association and the Dubai Multi Commodities Centre.


Silver Daily, 2010-1013 – (Bloomberg)

Listed metals producer KGHM signed an estimated PLN 1.67 billion deal on 2013 sales of silver to HSBC, KGHM said in a market filing yesterday.

The deal puts the total value of deals between KGHM and HSBC in the last 12 months to PLN 3.65 billion or $876 million, the filing read.

The Management Board of KGHM announced that on 21 January 2013 a contract was entered into between KGHM and HSBC Bank USA N.A., London Branch for silver sales in 2013.

The estimated value of the contract is PLN 1,672,260,469.66. As a result of entering into this contract, the total estimated value of contracts entered into between KGHM and HSBC Bank USA N.A., London Branch over the last 12 months exceeded 10% of the equity of the Company and amounts to PLN 3,654,120,061.59.

The highest-value contract signed during this period is the above-mentioned contract. The criteria used for describing the contract as significant is that the total estimated value of the contracts exceeds 10% of the equity of KGHM.

KGHM is one of the largest companies in Poland and one of the largest mining & metallurgy companies in the world.

The main customers of Polish silver in recent years have been the United Kingdom, Germany and Belgium.  HSBC appears to be one of their main customers now.

Respected and erudite, James Steel, the chief commodity analyst at HSBC Securities (USA) Inc. continues to be bullish on silver and recently said how “silver tends to track gold, except it over performs in a bull market”  and how he was “moderately bullish on silver” in 2013.


XAG/GBP Daily, 2010-2013 – (Bloomberg)



XAG/EUR Daily, 2010-2013 – (Bloomberg)

HSBC did not comment on the deal and it only came to light as KGHM is a listed company and had to report the deal which was then picked up in Polish media.

The massive deal could simply be HSBC securing supply for the NYSE listed ETFS Physical Silver as they are the custodian.

Or it could be that senior people in HSBC are concerned about securing supply as they expect robust investment demand to continue and possibly increase resulting in higher prices.

 


NEWS

Standard Bank Says Physical Gold Purchases Unusually High – Bloomberg

Gold up on Japan stimulus, US stocks at 5-year high – Reuters

Gold ends back above $1,690 on safe-haven appeal – Market Watch

Davos leaders uneasy over glut of easy money – Reuters

COMMENTARY
Video: German Repatriation Of Gold Is “World Historical” – Yahoo

The Entrance To The Second Phase Of The Gold Market Ascendancy – JS Mineset

Silver Dollar From 1794 Could Go for $6 to $7 Million – Bloomberg

Gold Super-Spike To Be Dwarfed By The Mania In Silver – King World News

Gold, Jack Lew and the Circle Game – Financial Post

A Visual History Of Gold – Zero Hedge

Comments

  1. 27,500,000 ounces of silver in the “last 12 months”.  This is disinfo to quell the silver shortage fears.  This is not new silver. Looks like they already burned through those ounces.

  2. They should move that silver to China.  They are paying way over spot for it.  They would make a killing.

  3. @The Doc
    Not looking for future predictions by speculation, just a roadmap of possible or evident events that would most likely cause solid action with no two steps backward. Doc why not keep an updated Chronicle of events by date that show where we are heading?

    Regards,
    Ranger
     

  4. Is this with their laundered drug and terrorist money??

  5. That is at over half a million ozs in that picture.   Someday, when trillons of dollars are lost in bonds, people will wish they broke off $16-17M and bought that stack while silver was under $50.

  6. This should be an EXPLOSIVE story.  HSBC was one of the defendants, along with JPM, of the lawsuits on Silver price manipulation.  This story tells you that there is now a race between the manipulators and the rest of the people of the world in acquiring physical Silver.  HSBC well understands the end game, and they well realize that, at the end of the day, paper Silver is useless.
     
    The current stock of physical Silver available for investment purposes is small in comparison to Gold, and it is tiny in comparison to all other financial assets.  The RACE to acquire physical Silver is ON…  It may be that soon, the price of Silver will be of little concern (especially since fiat currency can be created for free), and all that they care about is getting a hold of physical Silver to prevent the common people from acquiring it.  The fact that the US Mint stopped selling Silver Eagles is a sure sign of tight physical supply, because they’re not selling Silver for profit, but as a public service.  They are in effect withholding physical Silver from the public.
     
    The signs are there for all to see.

    • @Plebian
       
      Good observation! Though folks who’ve been awake enough to accumulate over the past decade, have benefited indirectly, the purpose of the bankers’ manipulation has quite possibly been their own survival assurance all along.

    • The amount of silver HSBC just purchased seems quite similar to the amount the silver ETF just increased.
       
      Numbers are pretty close:
      1 tonne = 35,274 ounces
      577 tonnes (ETF increase) = 20,353,098 ounces
      x $32.20 = $655 million

  7. Excerpt … “Chinese silver turnover surged to 2,200 tonnes on Friday and analysts say Chinese investor’s interest in silver is continuing to rise as many are looking at silver as a cheaper alternative to gold.”
     
    HAAAAAhahahahaha! China was on a silver standard for nearly four millennia! In the course of recovering from their ‘flying money’ debacle, Chinese merchants amazed Dutch ship Captains by offering GSRs of 1:8. Silver is FAR, FAR more valuable for a stable economy than gold is intrinsically capable of, by sheer availability. That’s a lesson totally lost in ‘modern’ (so called) economics.

  8. Now that is a very pretty picture, I wish my basement looked like that.

  9. @the-doc

    There is no certificate for silver bars!!!! It doesn’t exist that’s all. Check the LBMA rules they’re very clear.

  10. What pisses me off is the fact, that they (The Banksters) are stocking up on PM’s at low costs because of their manipulated Paper Market and would you believe it it was a Scotsman that started the HSBC in Hong Kong.
     

  11. How long before you can’t buy physical at any price because it is all being hoarded?

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