china gold

If the price of gold is determined by physical supply and demand of gold we are supposed to believe that since April 2013 (see chart below) there has been far more supply than demand as the price has come down substantially.
Supposedly there has been so much supply, that Swiss refiners expanded their plants and worked in three shifts 24 hours a day to refine all this gold, which they fortunately could dump in China!
The decline in the price was an enormous flood of supply and feeble demand!

China dragon

I would like to point out that the Chinese traders have been absent from gold/silver trading as this is their New Year.  They will be back Wednesday.
No doubt that due to their absence our bankers are having an easy time of knocking our metals down….which I expect will end on Wednesday.

willie

The new dust bowl has shown itself, as USTreasury liquidity dries up.
Since 2009, USTreasury debt has increased by 87.5% while the USFed purchases have increased by 417%. It is a travesty.  The USFed is the bond market.
The USGovt will ride the USDollar over the cliff, as it breaks all global pacts on the Reset.
The entire world will soon be at war with the United States, since the majority of nations wish to establish trade and monetary system upon gold. The rogue will be the United States, in the final boomerang whiplash.
The United States will succeed in isolating 85% to 90% of the community of nations, and thus win isolation for itself. The US faces deep risk of falling into the Third World, as those characteristics appear on every corner and every wall.
2015 has begun with a sequence of rocky events, as unstable factors show their face one by one.
The USDollar will die a horrible death, and Gold will return to its rightful throne.
The return of Gold to its primacy is long overdue.

Caption Contest 1

China is planning to change the landscape of world gold markets and strengthening the renminbi through supporting it by gold.
Therefore it’s in the interest of the People’s Republic Of China that not only Chinese individuals hoard gold, but the central bank as well

…A new global currency setup is being conceived.

Putin Chess

Alasdair Macleod joins the SGTREport for a MUST LISTEN interview dissecting all of the latest developments in world economics, NATO’s new war in Ukraine, and the ultimate financial nuclear weapon, Russian and Chinese GOLD.

Reuters / Leonhard Foeger

Central banks across the world have purchased a record 477.2 tons of gold in 2014 as an attempt to reduce the influence of the US dollar amid global financial instability, according to World Gold Council.
It is the biggest amount of gold purchased by the central banks in nearly 50 years, the council said in a report.
And these numbers do not even include China…

china gold

In the last trading week of January another huge quantity of gold left the vaults of the Shanghai Gold Exchange (SGE). According to the latest SGE data nearly 54 tonnes were withdrawn in week 4 (January 26 – 30), down 24 % w/w.
Year to date a staggering 255 tonnes has been withdrawn, up 4 % from the strongest January ever in 2014.

China demand

Thomson Reuters GFMS, one of the leading consultancy firms regarding precious metals supply and demand data has recently released the GFMS Gold Survey 2014 – Update 2

In the report, GFMS has effectively double counted SHFE gold trading volume:

Caption Contest 1

Withdrawals from the vaults of the Shanghai Gold Exchange (SGE)accounted for an incredible 70 metric tonnes in week 2 of 2015 (12 – 16 January) .
Aggregated withdrawals in the first two weeks of this year already stand at 131 tonnes:

China dragon

It’s not just a mere coincidence that the SNB de-pegs the swissy, and then a yuan currency trading deal is announced 6 days later.  The timing is not an accident.
I believe China agreed to set up a European yuan trading center in Zurich on the condition that the SNB sever the swissy’s connection to the euro.   I also think it’s another way for China to indirectly lob a bomb at the U.S. dollar in the ongoing currency war.

In this Keiser Report from Mexico City, Max Keiser and Stacy Herbert discuss China’s $250 billion for Latin America forcing America’s ‘positive’ hand in the region.
Meanwhile, back in China, ‘amateur hour’ reigns as the small cap index soars as dilettante investors believe lower stock prices mean less risk.
In the second half, Max interviews financial journalist, publisher and presenter, Sergio Sarmiento, about the Mexican economy, corruption and the failed state.

Nixon and Deng Xiaoping

Carter, Nixon and Deng Xiaoping

In 2002 China reformed its gold market and ever since has been effectively stimulating its citizens to save in physical gold, making the People’s Republic the largest gold producer and consumer on earth.
Additionally, China is openly calling for replacing the US dollar as the world reserve currency.
Did this all adventitiously happen or was it carefully planned many years ago?

year of the goat gold bullion coin 2015 2January is the time of the year for the Chinese to buy golden gifts for their love ones.
And that is exactly what they are currently doing en masse, according to the latest data from the Shanghai Gold Exchange (SGE).

willie

As 2015 began, the global breakdown is getting more clear. The retail and oil sectors are failing.  There will be a worldwide call to an end of the dollar. 
In 2015, the BRICS alliance countries will come to center stage and openly call for the end of the dollar and institute the gold standard as a solution.
The oil industry has $2 Trillion in sub-prime bonds, which is bigger than the sub-prime mortgage problem that blew up
and caused the 2008 crash.  In the next few months you will see a crashing  of those sub-prime bonds.
By the end of January there is going to be an international move away from the dollar.
The dollar will severely crack around the Chinese New Year in mid-February.
The dollar is dying.