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Chinese Gold Demand 998 MT YTD

According to the SGE reports published every friday on the previous trading week, Chinese wholesale gold demand year to date, as measured by SGE withdrawals, came in at 998 metric tonnes at the end of July 11 - at the time of writing it surely has passed 1000 tonnes.
 
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India Imported 713 MT Of Silver In April, 1921 MT YTD

Precious metals analysts have received a few gifts from the authorities this year. In January the Swiss Customs Administration (SCA) decided to disclose their gold trade data country specific (previously only the total import and export numbers of bullion were available), also in January British customs (HMRC) decided to add gold in their trade database (in previous years UK gold trade could only be tracked through Eurostat), and this week the Indian customs department (DGCIS) published their trade statistics of April with full disclosure of the exact tonnage of gold and silver that was imported and exported.

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ICBC: A New Global Currency Setup Is Being Conceived

At the LBMA Bullion Market Forum in Singapore on June 25, 2014, two very important speakers attended; Xu Luode, chairman of the Shanghai Gold Exchange, and Zhou Ming, General Manager of the Precious Metals Department at ICBC. Me and Torgny Persson have written about the speeches from Xu and Zhou in previous posts, in this post we will take a closer look at what Zhou said, based on what Chinese media have written about it (whereas Western media are reluctant to cover this).

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Chinese Gold Demand 973 MT YTD, Copper In Backwardation At SHFE

From now on I will also be writing blog posts at BullionStar.com. I’ve tried to make a living from donations and ads on this website, but it didn’t work out. That’s why I decided to expand my activities and to write for BullionStar.
 
If you go to the BullionStar homepage you can find my latest posts on gold, silver and related topics in the sidebar under de header Articles. We just got started and still have some work to do on the structure and graphics, but I’m confident it will turn out great!

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How Long Will People Trust Fiat Money?

I had an interesting conversation with a central banker a couple of days ago. He’s a friend of a friend and works at the Dutch central bank, an expert in fiat money – will be working at the ECB next month. I invited him for drinks to ask him about banking in general and the Turkish banking system (more on that in a future post). I was very happy to talk to him as it’s always valuable to get information from professionals.

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Does The PBOC Purchase Gold Through The Shanghai Gold Exchange?

Nope – that’s my answer. It’s my assumption the People’s Bank Of China (PBOC) does not buy any gold through the Shanghai Gold Exchange (SGE), for a number of reasons. In previous posts I’ve speculated about these reasons, here’s a recap; from Koos Jansen (April 15, 2014):
 
The main objectives for the PBOC to accumulate gold are:
 

Supporting the renminbi for its internationalization (adding trust and credibility)
Owning hard currency as the cornerstone of capitalism.
Owning reserves that protect the Chinese economy from external/internal shocks and inflation.

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Chinese Gold Demand 947 MT YTD

Chinese gold demand, as measured by SGE withdrawals, accounted for 27 metric tonnes in week 26 (June 23 – 27), year to date the counter stands at 947 tonnes. A quick calculation tells us 639 tonnes (SGE withdrawals – scrap – mining) had to be imported for this, annualized 1278 tonnes. Note, these are estimates. For a clear structure of this blog I will expand in a separate post on a recent article by Reuters titled “China gold imports may drop 400T hit by financing curbs”.

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Does Wall Street Even Notice That The Emporer’s Not Wearing Any Clothes?

Written by Chris Marcus, Arcadia Economics.
 
There are several aspects about working in today’s financial industry that are less than perfect, although gaining an insight into how many on Wall Street think and why they make the decisions that they do is certainly one of the positives. In fact what many on the outside often have a hard time understanding is that most on Wall Street are in reality somewhat oblivious to massive bubbles that the Federal Reserve has inflated, and that can make things confusing when you don’t factor it in properly.

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Guest Post: Holding The metals In A Post-Western World

Written by roguefaction
 
A recent Chairman of that private corporation in control of the finances – perhaps even, the destiny – of the USA for the past 100 years, famously referred to the yellow metal as “a barbarous relic”. Although this Ph’d prophet of policy-managed markets has hardly been a fount of wisdom in the course of his career… in this case he stumbled upon a truth.
 
Yes. Bernanke got it right! Gold has all the attributes of  a primitive thing – and as such belongs in essence to a different cycle in humankind’s journey.

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Did ABN AMRO Default On Its Gold Obligations?

On April 1, 2013 ABN AMRO sent a letter to its gold account clients that stated ABN AMRO would no longer offer physical delivery of precious metals.
 
 

 
 
 
 
Because I’m Dutch (the letter is also in Dutch), this looked like a default. The translation:
 
 
Changes in the handling of orders in precious metals
From April 1, 2013 ABN AMRO has a new custodian for the precious metals gold, silver, platinum and palladium. This is why we will change the way we handle and administer your investments in precious metals.

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Guest Post: Are The Chinese Ghost Cities Really Empty?

“China is the most talked about, but the least understood”, was recently being said on CNBC. I fully agree – from what I know of the Chinese gold market.
 
Western reporting on China swings from the most powerful economy after the US, that will soon take pole position, to the biggest financial bubble on the face of the earth that will soon implode. One of the most important elements of the Chinese economy that’s being discussed is their real estate market (the Chinese ghost cities).

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SGE Withdrawals 36 MT in Week 25, YTD 920 MT

Robust demand at the Shanghai Gold Exchange in week 25 (June 16 – 20), physical gold withdrawn from the vaults accounted for 36.3 metric tonnes, according to the Chinese SGE weekly report published last friday.
 
 
 
 
 
In my opinion Chinese (wholesale) demand, that equals SGE withdrawals, is still trending upward (if we ignore the variant demand from April to November 2013 due to the drop in the price of gold). In the chart below there is a clear pattern in SGE withdrawals; around every new year and the Chinese lunar year there is a spike in withdrawals, this is due to Chinese tradition to buy gold as a gift in this period.

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India Expected to Cut Gold Import Duties

Play the video in slow motion and fish for clues about Indian gold import duty cuts.
 
 

 
 
Merill Lynch has said in a note it expects the government to lower the import duty on gold in India by 2 % on a short notice. If gold import duties are being cut, now at 10%, that would likely increase (official) Indian gold import.
 
We’ve been hearing these rumors about Modi, India’s new prime minister, to cut gold import duties for weeks now.

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Jim Rickards: No Exit For The Fed

Written by Jim Rickards
 
The Federal Reserve, the central bank of the U.S., is nearing the end of its ability to manipulate the U.S. economy without producing consequences worse that those it set out to avoid in 2008. The Fed has no good exits from seven years of market manipulation. If it continues its current policy of reducing purchases of assets, the so-called “tapering,” it risks throwing the U.S. into a recession. If it reverses course and pauses the taper and later increases asset purchases, it risks destroying confidence in the dollar among foreign creditors of the U.S.

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ABN AMRO: Gold’s Safe Haven Status Should be Revised

I think most of you remember the Dutch bank ABN AMRO. Last month they came out with an analysis titled: It’s Not All Gold That Glitters.
 
I present the translation, from which you can read ABN AMRO is trying to change thousands of years of history by saying gold’s safe haven status should be revised, all because the price of gold did not behave as they expected in recent years. An interesting read from a paralel universe.
 
 
It’s Not All Gold That Glitters
03-05-2014
 
In uncertain times investors seek safety in gold, but gold isn’t the safe haven it used to be, according to experts.

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LBMA Forum Singapore: SGE Chairman Confirms Chinese Gold Demand In 2013 Hit 2000 MT

I just received a very interesting email from Torgny Persson, chief executive officer of BullionStar.com, who is attending the LBMA forum in Singapore today.
 
Dear Koos,
 
Following up on our brief discussion before, I’ve continued to follow your excellent blog and have some breaking news for you. I’m writing to you from the lunch break at the LBMA forum in Singapore today.
 
Among the speakers were Xu Luode, Chairman of the Shanghai Gold Exchange, and Zhou Ming, General Manager of the precious metals department for ICBC.

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Chinese Gold Demand 883 Tonnes YTD

Withdrawals from the Shanghai Gold Exchange (SGE) vaults in week 24 accounted for 33 metric tonnes. Year to date Chinese gold demand, measured by SGE withdrawals, stands at 883 tonnes. A quick calculation (week 1 – 24  SGE withdrawals – mine – scrap) tells us that China net imported 599 tonnes year to date, annualized 1298 tonnes.
 
All silver futures contracts are trading in contango at the Shanghai Futures Exchange.
 
Meanwhile Russia added 9.3 tonnes to their official reserves in May.

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Hong Kong Is The Key In Global Gold Trade, For Now

It began to dawn on me  when I was writing a post on May 27th about the Shanghai Gold Exchange international board. For the post I added a video from CNBC with Joshua Rotbart, general manager of  Malca-Amit precious metals, a vaulting company that recently openend a 2000 tonnes vault in the Shanghai Free Trade Zone (FTZ). In the video Joshua explains about his business in the FTZ. His position – bullion banks being his clients – gives him a lot of expertise with regard to global gold trade.

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Investment Gold Demand Higher In Switzerland Than China?

Just stumbled upon a video which I almost forgot about. It’s an interview with Jeff Christian by Daniela Cambone from Kitco News. They talk about the physical gold market, specifically the role of Switzerland and China. Mr Christian states investment gold demand is higher in Switzerland than in China. I disagree.
 
 

 
 
A few quotes from Jeff Christian:
 
There is a tremendous amount of gold moving out of traditional markets, from Switzerland, the UK and New York to China.

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China Develops Gold Mining In Central Asia

I wil be writing more short posts from now on. I don’t always have the time to expand on topics I think are worth sharing. So these will be just quick updates.
 
In the past months I came across two news items regarding Chinese companies developing gold mining in Central Asia (Kyrgyzstan and Tajikistan).
 
On June 12, Yantai Yuancheng Gold Co Ltd said they signed a strategic agreement with partners to increase investment in a gold mine project in Tajikistan, according to Reuters (this is the more extensive source text in Chinese).

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The Bank Of England Lost 755 Tonnes Of Gold In 2013

The Bank Of England (BoE) just came out with their annual report 2014. In the report it’s stated the BoE is the custodian of 5485 metric tonnes of gold (£140 billion pounds measured February 28, 2014). From the BoE annual report 2014:
 
 
The Bank provides custodial services for a range of customers. As at 28 February 2014, total assets held by the Bank as custodian were £594bn, of which £140bn were holdings of gold.
 
 
In the BoE’s annual report 2013 it was stated they held 6240 tonnes of gold (£210 billion pounds measured February 28, 2013).

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