Silver & Gold: You Have to LIE!

March 7, 2013 By 18 Comments

“When it becomes serious, you have to lie.” – Jean-Claude Juncker

The Fed is creating $Trillions of “new money” while central bank bullion buying is at a 48 year high. The Fed is printing money and driving up consumer prices for Americans, while China, Russia, and many countries are buying gold. It would appear those other countries trust and value gold more than they trust the dollar – especially when it is being spent, borrowed, and printed in excessive quantities. People listen to political promises and the pronouncements of the Federal Reserve Chairman, but gold does NOT. Gold simply moves to where it is most respected and valued. Currently, there is a massive migration of gold bullion from the West to Eastern governments, central banks, and individuals. [Read more...]

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China’s $3.3 Trillion FX Reserves Could Buy All World’s Gold Twice

March 4, 2013 By 4 Comments

China’s foreign currency reserves have surged more than 700% since 2004 and are now enough to buy every central bank’s official gold supply — twice. The Bloomberg CHART OF THE DAY shows how China’s foreign reserves surpassed the value of all official bullion holdings in January 2004 and rose to $3.3 trillion at the end of 2012. The price of gold has failed to keep pace with the surge in the value of Chinese and global foreign exchange holdings. Gold has increased just 263% from 2004 through to February 28, with the registered volume little changed, according to data based on International Monetary Fund and World Gold Council figures. By comparison, China’s reserves rose 721% through 2012, while the combined total among Brazil, Russia and India rose about 400% to $1.1 trillion. [Read more...]

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Record Dollar Value Gold Demand In 2012 – India, China and Central Banks Buy

February 14, 2013 By 3 Comments

According to the World Gold Council’s Q4 2012 report issued today, Global gold demand in Q4 2012 reached 1,195.9 tonnes, up 4% from Q4 2011. In value terms gold demand for the quarter was 6% higher year-on-year at $66.2bn marking the highest ever Q4 total and driving annual demand in 2012 to a record value of US$236.4bn.

• Whilst Indian full year demand was down 12% on the previous year, the market performed strongly in the final quarter with total demand at 261.9t, an increase of 41% on the same period last year.
• Chinese demand was flat year-on–year, reflecting the impact of economic slowdown. However looking at Q4, total demand was up 1% on the previous quarter to 202.5t. Jewellery demand was137.0t up 1% on Q4 2011 and investment demand was 65.5t, up 2% on the previous year.
• Central bank buying for the full year rose by 17% compared to 2011, totaling 534.6t, the highest level since 1964. Central bank purchases stood at 145.0t in Q4, up 29% on the corresponding quarter in the previous year, making this the eighth consecutive quarter in which central banks have been net purchasers of gold. [Read more...]

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Private US Gold is Flooding East As US Gold Exports Rise 43% in December!

February 11, 2013 By 17 Comments

Reuters reports that US gold exports in December were the highest monthly totals since Sept 2011, up a massive 43% month over month. An astonishing 1/2 of all US Gold exports in December reportedly  were shipped to Hong Kong!

We are watching real US wealth flow straight to China in exchange for a few more months of normalcy bias can kicking.
[Read more...]

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Jim Rickards: China Likely Has Accumulated 2,000-3,000 Tonnes of Gold Reserves!

February 5, 2013 By 14 Comments

Lauren Lyster Jim RickardsThe Daily Ticker’s Lauren Lyster interviewed Jim Rickards regarding the Bundesbank’s recent announcement that it will repatriate over 600 tons of German gold from the NY Fed and the Bank of France, and its implications on the gold market over the short and long term. 

Rickards stated that the Bundesbank’s gold repatriation is world historical, is massively bullish for gold, and believes that China has doubled to tripled its gold reserves since the last official statement of 1,054 tonnes in 2009!

Rickards interview on gold is a MUST WATCH!! [Read more...]

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China’s Gold Imports From Hong Kong Double To New Record 835 Tons In 2012

February 5, 2013 By 3 Comments

China Gold June Imports_0Gold imports into mainland China from Hong Kong almost doubled to new high in 2012 as Chinese people continue to play catch up in terms of gold ownership. The Chinese were forbidden from owning gold for over 50 years.  Rising incomes, economic jitters and concerns about currency debasement and inflation in the world’s second largest economy led to increased demand in China which contributed to gold seeing another year of gains.  The very poor performance of the Chinese stock market in the last 10 years (see chart below) and concerns about property bubbles are also leading Chinese investors and savers to diversify into gold.

Mainland China imported a whopping 834,502 kilograms or 834.5 metric tons of gold, including scrap and coins in 2012.  This compared with about 431,215 kilograms or 431.2 metric tons in 2011, according to Bloomberg calculations based on data from the Census and Statistics Department of the Hong Kong government.  Imports in December 2012 rose to a monthly record of 114,405 kilograms, according to data from the department today. [Read more...]

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While We Increase QE to Infinity, China Wisely Doubles Down on Gold Accumulation

December 8, 2012 By 24 Comments

By AGXIIK:

We double down on the most destructive form of financial ineptitude with wild fire printing of FIAT currency, hollowing out our economy while exporting inflation to nearly every country.  China wisely doubles down and  doubles down again Real Money.   After the Western powers, aided by gold stealing allies like Japan, made off with well over 100,000 tons of gold China accumulated over the last 3,000 year, they are not going to let this happen again.  [Read more...]

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Stewart Thomson: Silver & The Fab Four

November 28, 2012 By 9 Comments

By Stewart Thomson:

Fundamentally, I believe here are 4 major reasons that the long term silver chart looks “ultra-bullish”.
First, the market is probably anticipating a substantial recovery in the Chinese economy, and perhaps additional government stimulus.
Second, the US fiscal cliff is likely to be resolved in a manner that encourages “risk on” institutional investors to take action on the buy-side.
Third, I expect the European Central Bank will announce measures that calm worries about not just Greece, but Spain and Italy, too.
Fourth, while the fiscal cliff will likely be resolved, I think the US Federal Reserve will expand the current level of stimulus being provided by QE3, probably in January, and this action could cause a near-vertical spike in all risk-on markets.

Silver is likely to be the greatest beneficiary of these 4 key events, even if they play out only partially.  If they play out as I’m predicting, I would expect silver to blast through the highs at $50, by early in the new year.  Silver at $80 is realistic, if these “fab four” events play out well. [Read more...]

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China Gold Reserves “Too Small” – Ensure “National Economic and Financial Safety”

November 14, 2012 By 36 Comments

China needs to add to its gold reserves to ensure national economic and financial safety, promote yuan globalization and as a hedge against foreign- reserve risks, Gao Wei, an official from the Department of International Economic Affairs of Ministry of Foreign Affairs, writes in a commentary in the China Securities Journal today which was reported on by Bloomberg. China’s gold reserve is “too small”, Gao said and while gold prices are currently near record highs, China can build its reserves by buying low and selling high amid the short-term volatility, Gao wrote. The People’s Bank of China is accumulating significant volumes of gold under the radar of many less informed market participants which is bullish. The Chinese government is secretive about its gold diversification and buying and does not disclose gold purchases to the IMF. Therefore, there has been no official update to their holdings since the barely reported upon announcement four years ago that Chinese gold reserves had risen from just over 500 tonnes to over 1,000 tonnes. [Read more...]

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LBMA Chairman: Chinese Gold Reserves Can Only Go One Direction: UP!

November 12, 2012 By 12 Comments

Chairman of the LBMA David Gornall told the conference, “When comparing China to the U.S., it would seem that in China, gold asset allocation can only go in one direction.  The country has only 2% of its reserves in the form of gold compared with the U.S. at 75%.” The People’s Bank of China hasn’t disclosed any changes to its gold holdings since 2009, when it said they had risen a whopping 76% to 1,054 metric tons. While the U.S., Germany, Italy and France keep more than 70% of reserves in gold, China’s share is less than 2%. “Prices have recently been supported by official sector buying,” Gornall said today, without listing any central bank. “Will the gap between the amount of gold held in reserve by the developing markets and that of the developed world close?” Brazil, South Korea and Russia have all added gold reserves this year data from the International Monetary Fund show. Nations bought 254.2 tons in the first six months and may increase to 500 tons this year, the World Gold Council said in August, exceeding the 456 tons added in 2011. China has the world’s largest foreign-exchange reserves, totaling $3.29 trillion in September, according to data by Bloomberg. [Read more...]

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