China goldFor China, gold’s strategic mission lies in the support of renminbi internationalization, and so let China become a world economic power and make sure that the China Dream is realized… gold forms the very material basis for modern fiat currencies. 
Gold is the world’s only monetary asset that has no counter party risk.
That is why, in order for gold to fulfill its destined mission, we must raise our gold holdings a great deal…

china goldFrankly, this is a disgrace and a scandal, and shows that the Chinese auction methodology is far more transparent that its London counterpart.
The Chinese will at some stage call time-out when ready, and allow the Shanghai Gold Price Benchmark to really shift up a gear to generate physical gold prices that will disconnect from the COMEX and LBMA pass the parcel shenanigans.

petro dollar sunset WillieIn this MUST LISTEN extended interview, Hat Trick Letter editor Jim Willie forecasts why the Chinese are set to take over the daily gold fix (particularly in the wake of last week’s London silver fix fiasco), and are set to announce RMB gold futures contracts…

Shanghai Gold Exchange SGE withdrawals 2009 - 2016 JanuaryIt seems the Shanghai Gold Exchange (SGE) is continuing to publish the amount of gold bars withdrawn from the vaults on a monthly basis. For the month of January “SGE withdrawals” accounted for 225 tonnes, down 1 % from December. After the first weekly SGE reports in 2016 did not disclose SGE withdrawal data and phone calls to the bourse in Shanghai answered these numbers would not be published anymore we can wonder why the Chinese have changed their stance.

China goldIn my 20-minute presentation I clearly explained why I think Chinese gold demand is not what mainstream consultancy firms (GFMS, WGC, Metals Focus, CPM Group) would like you to believe.
(surprise, surprise…) The recording of my presentation on Chinese gold demand is not allowed by Scotiabank to be republished on YouTube.

So what I did is re-record the presentation:

ChinaFinally last Friday the People’s Bank Of China (PBOC) updated its official gold reserves, from 1,054 tonnes, a figure reported since 2009, to 1,658 tonnes. Most gold analysts expected a number substantially higher than what was just disclosed.  In this post we’ll analyze the 1,658 tonnes figure.
Why 1,658 tonnes?

Play

hyperinflationWith Metals Smashed This Week and Gold Closing the Week at Bear Market Lows, The Doc & Eric Dubin Cover All the Action, Discussing:

  • Eric Breaks Down the Numbers and Explains Why Friday’s Chinese Announcement Updating Gold Reserves to 1658 Metric Tonnes is a TOTAL JOKE!
  • Silver Smashed to $14 Handle and Gold Closes Week at Bear Market Lows- Are the Metals Headed Over the Cliff for Final Capitulation Crash on Sunday’s Globex Open?
  • Is Greece Over, Or Are We in the Eye of the Hurricane? 
  • Physical Silver Mainstays Go NO OFFER At Authorized Distributors and Wholesalers! 

    The SD Weekly Metals and Market With The Doc & Eric Dubin is Below:

silver fixThe financial media has recently pitched the transition of the London daily gold fixings to an ICE Benchmark Administration (IBA) platform as a quantum leap from an antiquated Victorian-era process to a futuristic 21st century electronic auction.
For example, the Wall Street Journal recently said that:
“Four of the banks…had participated in the conference call used to determine the daily fixes, a system largely unchanged for nearly a centuryand that “Gold is the last of the precious metals to make the switch to an electronic platform.”

The evidence suggests however, that in the last decade, the technology utilized in the daily gold fixings was far more advanced than the media commentaries imply, and that since 2004, the old gold fixing was not as technologically backward as is generally accepted.

ChinaThe difference between SGE withdrawals and WGC Chinese gold demand from 2007 until 2014 is a whopping 3,354 tonnes!
What can we subtract from this number from differences in metrics?
Let’s put to work the legitimate arguments and see what happens: