Saturday, October 18, 2014

Gold , Silver and PM Round up ( October 18-19 , 2014 ) - Ed Steer's Weekend Report , selected Gata and Koos Jansen items to consider....

"Sooner or later the forces of nature---and the markets---will not be denied"


There wasn't a lot of price action in gold yesterday.  What action there was occurred between the noon silver fix in London---and the Comex close in New York.
The high and low tick are barely worth the effort of looking up---and the CME Group recorded them as $1,242.10 and $1,232.00 in the December contract.
Gold finished the Friday session at $1,238.20 spot, down 70 cents from Thursday's close.  Net volume was very much on the lighter side at only 109,000 contracts.
The price chart in silver looked very similar to the gold chart---and silver traded in a two bit range for the entire day.
The high and low in silver were recorded as $17.44 and $17.22 in the December contract.
Silver closed in New York yesterday at $17.27 spot, down 9.5 cents from Thursday's close.  Net volume was pretty light at only 25,000 contracts.
Platinum rallied right from the moment that the markets opened in New York on Thursday evening, but that ended/got capped just after 10 a.m. Hong Kong time.  It got sold down a bit going into the Zurich open---and then didn't do much for the remainder of the day.  Platinum closed up 12 bucks.
Palladium also rallied in the early going---and then developed a negative bias around noon Hong Kong time---and slid a hair until about 10:15 a.m. in Zurich.  Then it rallied anew until noon Europe time---and then traded pretty flat for the remainder of the Friday session, closing up 13 dollars.
The dollar index closed late Thursday afternoon in New York at 84.96---and then chopped around before sliding to its 84.77 low at precisely 8 a.m. in New York.  The subsequent rally topped out at 85.23 around 11:25 a.m. EDT---and it didn't do a lot for the rest of the day.  The index finished back above the 85.00 mark at 85.20.
The gold stocks spent all of two minutes in the black at the open of trading at 9:30 a.m. EDT yesterday---and it was all down hill from there, as the HUI closed virtually on its low tick of the day, down 3.47%.  This sell-off was out of all proportion to the tiny loss in the metal itself.
And as bad  as the gold shares performed, the silver equities got shelled, as Nick Laird's Intraday Silver Sentiment Index closed down an eye-watering 4.62%.  There was no reason for this magnitude of sell-off either.
The CME Daily Delivery Report showed that 230 gold and 72 silver contracts were posted for delivery within the Comex-approved depositories on Tuesday.  In gold, it was the strangest thing, as Barclays was the only short/issuer with 230 contract out of its in-house [proprietary] trading account.  They were also the biggest long/stopper with 228 contracts in their client account. One has to wonder what that was all about.  In silver, the two short/issuers were Jefferies and ABN Amro with 52 and 20 contracts apiece.  There were four different long/stoppers, but Jefferies stopped 26 of them.  The link to yesterday's Issuers and Stoppers Report is here.
The CME Preliminary Report for the Friday trading session showed that gold's open interest in October declined by 129 contracts, and is now down to 837 contracts.  Silver's October open interest was unchanged at 174 contracts.  From these numbers, one must subtract the deliveries mentioned in the previous paragraph.
There were no reported changes in GLD yesterday---and as of 7:44 p.m. EDT yesterday evening, there were no reported changes in SLV.  But when I was editing at 5:02 a.m. EDT this morning, I see that the folks over at the iShares.comInternet site showed a withdrawal from SLV of 1,150,380 troy ounces.
There was another sales report from the U.S. Mint.  They sold 6,000 ounces of gold eagles---2,000 one-ounce 24K gold buffaloes---and 50,000 silver eagles.
Month-to-date the mint has sold 42,500 troy ounces of gold eagles---17,000 one-ounce 24K gold buffaloes---3,100,000 silver eagles---and 400 platinum eagles.  Based on these sales, the silver/gold sales ratio stands at 52 to 1.
There was a small amount of gold shipped out of the Comex-approved depositories on Friday, as 2,411 troy ounces were withdrawn from Scotiabank's depository.
Of course, things were a lot different in silver.  Nothing was reported received, but a huge 1,716,910 troy ounces were shipped out the door---and the link to that action is here.
The Commitment of Traders Report, for positions held at the close of Comex trading on Tuesday, October 14, was pretty much what I was expecting to see in both silver and gold.
In silver, the Commercial net short position was virtually unchanged, as it only declined by 20 contracts, which isn't even a rounding error.  The Commercial net short position still sits at 16,260 contracts, or 81.3 million ounces.
But under the hood in the Disaggregated COT Report, things were a little different, but in a good way.  The Managed Money in the technical fund category sold another 572 long contracts and went short an additional 1,226 contracts.  That, I believe is a new record short position in the Managed Money category, so the rubber band is stretched about as tight as it can get in silver.
Ted Butler said it appeared that JPMorgan covered another 500 contracts of their short-side corner in the Comex silver market, which is another new low since they inherited that gargantuan short position from Bear Stearns back in 2008.  They now hold 10,000 contracts net short, or 50 million ounces, which is a sizeable chunk of the total Commercial net short position which, from two paragraphs ago, worked out to 81.3 million troy ounces.
In gold, the Commercial net short position increased by a rather chunky 15,416 contracts, or 1.54 million ounces of paper gold---and that's all because of the rally in gold during the reporting week.  The Commercial net short position in gold is now up to 7.88 million troy ounces.
The traders in the Managed Money category accounted for most of the buying as they went net long to the tune of 12,333 contracts.
Ted said that JPMorgan sold another 3,000 contracts of their long-side corner in the Comex gold market---and their long position is now down to 18,000 contracts, or 1.8 million ounces.
And because of last week's rally in gold, Ted's concern now is that gold has become vulnerable to a sell-off, as the Commercials may attempt to engineer a decent price decline in order to force these newly minted long contract holders into puking up all these long contracts they just bought.
As it stands three days after Tuesday's cut-off, the traders in the Managed Money category are pretty much maximum short in all of the 'Big 6' commodities now, except for gold.  'Da boyz' may certainly be tempted to make it six out of six.


Gold , Silver and PM News.....

Doug Noland: The Downside of "Do Whatever it Takes"

Considering the global backdrop, I actually see a curious lack of extreme views (at least from the bear side). Instead, we’re at the stage of the cycle where even “bearish” pundits go out of their way to distance themselves from “the world is ending” prognosis. I guess I would be considered an extremist, though I don’t see the world ending anytime soon. But this week did offer further evidence that history’s greatest financial Bubble is at significant risk.
Friday’s rally did a lot to paper over what was a disturbing week for global markets. The mini-melt-up successfully took a great deal of value out of index and stock put options that expired Friday. Those wanting market protection will now have to pay up for expensive puts that expire in November, December or later.
But don’t let the S&P 500’s modest 1.0% decline fool you. It was an extraordinary week. Japan’s Nikkei index was hammered for 5.0%, increasing 2014 losses to 10.8%. Japanese two-year yields traded to a record low 0.005%. After beginning the week at 6.60%, Greek 10-year bond yields traded to 9% on Thursday (before closing the week at 8.07%). Wild instability returned to European debt (and equities) markets. Portugal’s 10-year yields were up 75 basis points by Thursday, before a rally cut the week’s increase to 35 bps. Germany’s DAX equities index dropped 2.87% on Wednesday then rallied 3.12% on Friday. Italian stocks sank 4.44% and then rallied 3.42%.
If only Bubbles lasted forever. And, unfortunately, the longer they persist and the bigger they inflate, the more problematic the unavoidable collapse. This important reality is ignored at everyone’s peril. Determination to avoid collapse only ensures greater and more precarious Bubble distortions and maladjustment. “World Braces as Deflation Tremors Hit Eurozone Bond Markets,” read another U.K. Telegraph headline. And Bullard and the global central bank community fret a “collapse in inflation expectations.” It is important to recognize that disinflation and collapsing “inflation expectations” are symptomatic of a bursting global financial Bubble. They provide early evidence of what will be a spectacular failure in experimental “activist” central banking.

LBMA gets 8 proposals to replace century-old gold fixing

Intercontinental Exchange Inc., the London Metal Exchange, and CME Group Inc. and Thomson Reuters Corp. are among firms shortlisted to develop and run a replacement for the century-old London gold fixing benchmark.
Autilla Ltd. (Sapient) and EBS are also on the short list, the London Bullion Market Association said in a statement today. Ten companies submitted eight proposals, some of them joint.
The LBMA, which said last week firms will present at a seminar on Oct. 24, expects a market consensus to emerge next month and the chosen method adopted by year-end or early 2015.

LBMA names Morgan Stanley as gold/silver market maker

The London Bullion Market Association (LBMA) said on Thursday it appointed Morgan Stanley as a market maker, underscoring the ambitions of some banks to expand into precious metals trading while others exit due to stringent regulations.
LBMA said it named Morgan Stanley & Co International Plc, a unit of U.S. investment bank Morgan Stanley, as a spot and options market-making member effective Thursday.
Currently, LBMA has 13 market makers which serve in either one, two or all three of the spot, options and forwards markets. They make markets by quoting two-way prices in both gold and silver products to other market makers.
Just three weeks ago, LBMA named Citigroup as a spot market-making member.

LME takes battle to Washington after London warehouses win

Fresh from a court win in Britain, the London Metal Exchange now faces one of its biggest hurdles yet in its years-long crisis over its warehousing policy that consumers say has inflated prices: convincing U.S. lawmakers its reforms are enough.
When Britain's Court of Appeal handed a victory to the LME last week, knocking out a challenge to the reforms by Russian aluminum giant Rusal last week, the LME's head of business development, Matt Chamberlain, was in Washington, a source familiar with the matter said.
Chamberlain was there to plead the exchange's case with lawmakers who have been pushing for even greater change to the LME's warehouse policy.
Senator Sherrod Brown was among the people the LME visited, a spokeswoman for the Senator said. The Ohio Democrat has been a fierce critic of the LME, urging U.S. regulators to crack down on the 137-year old exchange, and threatening to write rules that would compel regulators to intensify oversight of the exchange on U.S. turf.

“Save Our Swiss Gold ” - Game Changer For Gold?

We believe that the “Save Our Swiss Gold” campaign has the potential to be a game changer in the gold market - both in terms of the ramifications for the current global monetary system and in terms of higher gold prices. 
There has been a lack of coverage of this important story and there is therefore a lack of awareness about the possible implications for the gold market. Thus, in the weeks prior to the referendum on November 30th, we are going to analyse the referendum, the important context to the referendum and the ramifications of a yes or a no vote. Mark O’Byrne, Head of Research, GoldCore

China gold production seen falling, prompting more imports

Growth in gold mine output from number one producer China is set to slow significantly in coming years in the face of declining ore grades and waning profitability, analysts Business Monitor International said on Friday.

Lower mine production will pave the way for rising imports to meet persistent strength in demand from Chinese consumers, BMI analyst Xinying Chia said, while domestic mining companies will also look overseas to boost production.
In an interview with the Reuters Global Gold Forum, Hong Kong-based Chia said Chinese mine output growth was expected to slide to 0.9 percent in 2018, from around 6 percent this year.
"Many domestic miners are grappling with the problems of depleting reserves, falling ore grades and rising cash costs," Chia said.


While both fell about the same percentage over the past few months, some important distinctions between oil and silver are that silver is at record extremes of managed money short selling---and well below the cost of production for primary producers.  Crude oil prices may have fallen enough to reverse upward here or soon, but silver is more advanced on both counts. Plus, there are continued signs that the supply/demand situation is relatively tighter in silver than they are in crude oil.
Lastly, silver is a natural as a safe haven demand in what are increasingly tenuous financial times. Yes, it’s true that silver has been underperforming just about everything under the sun for some time, but that has only resulted in it becoming more of an outstanding undervalued asset. Silver investment demand has, can, and will turn into a torrent at a moment’s notice and if ever there were a time for it to soar, that time would appear to at hand. - Silver analyst Ted Butler: 15 October 2014
I've got two pop 'blasts from the past' for you today---and both by the same group, as they were the only two big hits they had back in the late 1970s---but what hits they were!  It's been more than a year since I posted them last, so it's time for a revisit.   The group is 'The Babys'---and although the name may not ring a bell, the tunes are classics.  The lead singer, John Waite, as wonderful as he is, is bested by the girls singing back-up vocals.  They're just terrific.  The link to the first recording is here---and the second one is linked here.
Today's classical 'blast from the past' was first performed in what is now called Oslo in Norway back on 24 February 1876.  It's the incidental music from Henrik Ibsen's 5-act play, Peer Gynt.  The play is not performed often in North America; but the music, written by Norway's legendary composer Edvard Grieg---who composed this music in his very early 30s---has found a permanent home in the classical repertoire---and rightfully so.
I, for one, never tire of listening to it.  This video was uploaded on 05 May 2013---and has already had 675,000 hits, which is a monstrous number for a classical work.  The quality of the audio and video is first rate---and best watched 'full screen'.  The Spanish Radio and Television Symphony Orchestra [based out of Madrid] do the honours here---and the performance is as good as it gets.  Guillermo Garcia Calvo conducts. The link is here.
The memories of the potential for a global meltdown in all things paper---and the melt up in all things physical everywhere on Planet Earth on Wednesday---is almost a distant memory now.  There were lots of voice out there saying that everything was fine---and that there was "nothing to see here, folks---please move along."  But, as Doug Noland pointed out in his weekly Credit Bubble Bulletin in theCritical Reads section, The Truman Show continues---as "this past week did offer further evidence that history’s greatest financial Bubble is at significant risk."
That would be an understatement.
Since that event, the gold and silver prices have been mostly in lock down, even though JPMorgan et al continued to engineer the price lower on platinum, palladium, copper and crude oil, which continued up until trading ended on Thursday in New York.
Here are the 6-month charts for all the 'Big 6' commodities.  Crude oil matched its Thursday low tick in Friday trading---and platinum, palladium and copper all finished off their low ticks of Thursday.
Looking at the precious metal equities, the price action yesterday was out of all proportion to the intraday and closing price of these two metals---and that's not the first time that we've seen this counterintuitive share price action lately.
As I mentioned earlier this week, John Embry has always suspected [as have I] that the powers-that-be were actively intervening in the precious metal equity markets---and yesterday's share price action seemed to fall into that category as well.
Looking back at the week, it's a certainty that if it hadn't been for the Plunge Protection Team's active intervention in the markets at 9:40 a.m. EDT on Wednesday, it would certainly be a different world today.
Doug Noland put it this way: "I find the backdrop surreal. And the more everyone acts as if it’s all business as usual, the more worried I get. As crazy as I know it sounds, I am these days reminded of my bewilderment when studying the period leading up to the 1929 stock market crash. How could they not have seen it coming? How could everyone remain so bullish (“a permanently high plateau”) considering what in hindsight was an obvious – and quite ominous – deterioration in the market and global economic outlook. I also think often of a quote from that period: “Everyone was determined to hold their ground, but the ground gave way.” Can the world’s central bankers hold everything up?"
Who knows for sure, dear reader, but they've been at it in the U.S. ever since the PPT intervened in the crash of 1987---and 27 years later, the bubble in all thing paper has become global in scope.  The attempt by the world's stock markets to return to their intrinsic values on Wednesday was, once again, thwarted---but Jim Rickards' snowflakes continue to fall.
Sooner or later the forces of nature---and the markets---will not be denied.  At that point the Fed will get buried---and the ball will be in the IMF's court, SDRs in hand.   It's my bet that they'll be backed by gold---and the gold price used to back them will be many orders of magnitude higher than it is now.
Before heading off to bed, I'm excited to announce the premiere of Casey Research's documentary-style film on the only way for American’s to legally minimize their taxes without leaving the America’s Tax-Free ZoneFREE online video – which premiered on Thursday to the International Man audience.
This documentary runs almost half an hour and features a discussion of the current tax situation in Puerto Rico and, generally, how to take advantage of it---with guest commentators, Doug Casey and Peter Schiff, as well as several others.  You can check it out by clicking here.
That's all I have for the day---and the week.  I hope you enjoy what's left of your weekend---and I'll see you here on Tuesday---Wednesday if you live just west of the Dateline.

Add ons.....

From Gata....

Silver futures ripe for short squeeze and 'cash settlement' default, Sprott says

11a ET Saturday, October 18, 2014
Dear Friend of GATA and Gold:
Sprott Asset Management CEO Eric Sprott, interviewed for the Sprott Money News weekly review, notes that the Ebola virus problem is far worse than government officials have said, that the world economy is too, that the monetary metals futures markets are easily manipulated by big money, but that the silver futures market is ripe for a short squeeze that will end in the default of "cash settlement." The interview is 15 minutes long and can be heard at the Sprott Money Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

TF Metals Report: The current cap

1:10p ET Thursday, October 16, 2014
Dear Friend of GATA and Gold:
Bullion banks are capping the gold futures price, overwhelming speculative demand with their shorting, to preserve the downtrend line in the gold price chart, the TF Metals Report's Turd Ferguson reports today. Ferguson's commentary is headlined "The Current Cap" and it's posted at the TF Metals Report here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Gold imports by India seen rising more than fourfold last month

By Pratik Parija
Bloomberg News
Wednesday, October 15, 2014
NEW DELHI, India -- Gold imports by India, the largest user after China, probably surged more than fourfold last month on expectations declining prices would boost festival demand.
Purchases are estimated at about 95 metric tons compared with 15 tons to 20 tons in September last year, said Bachhraj Bamalwa, a director at the All India Gems & Jewellery Trade Federation. The government raised import taxes for a third time in August last year after a month earlier obliging importers to set aside 20 percent of purchases for re-export as jewelry.
India represented 25 percent of global demand in 2013. Imports of gold were valued at $3.75 billion in September, 450 percent more than a year earlier, the Commerce Ministry estimates. Buying and gifting of gold is considered auspicious and the most favorable time is the festival of Dhanteras, two days before Diwali which occurs on Oct. 23. Festivals run through November and the wedding season follows to early May. ...
... For the remainder of the report:

Gold stubs Swiss National Bank's toe, and the Financial Times says 'ouch!'

On its own hook the FT's "news" story accuses the Swiss gold initiative of "absurdities," mockery the newspaper has yet to hurl against central banks even as they intervene openly in every market and resort to "negative interest rates." Yes, in the FT's view only gold as money can be "absurd." And largely surreptitious control of the valuation of all capital, labor, goods, and services in the world by an unelected, supra-national elite isn't totalitarian -- it's good government! Central banking, heil!
* * *
Swiss Fight to Block Public Gold Vote
By Delphine Strauss
Financial Times, London
Tuesday, October 14, 2014
Switzerland's central bank is flexing its muscles to defend its cap on the Swiss franc. Its battle to fend off deflation -- in which it sees the exchange rate as its chief weapon -- is already complicated by the slide in the euro that followed European Central Bank easing. Now the SNB is fighting on a new front: to block a populist motion that would force it to almost treble the proportion of reserves held in gold.
At the end of November, Swiss citizens will vote on an initiative that calls on the central bank to hold at least 20 per cent of its assets in gold; to repatriate any gold stored abroad; and to refrain from selling any gold in future.
The "Save our Swiss Gold" initiative -- launched by members of the ultra-conservative Swiss People's Party -- seeks to tap into a current of Swiss public opinion that is fiercely proud of the country's independence, and unsettled by the economic struggles of its neighbours. But it has drawn criticism from across the political spectrum.
The government has rejected the idea, saying last year that "gold no longer has any meaning for monetary policy." Parliament voted against it by a large majority.
For the central bank, the measures are not merely an anachronism: they pose an immediate threat. Since September 2011, when it promised to buy as much foreign currency as needed to stop the Swiss franc strengthening past SFr1.20 to the euro, the SNB's foreign currency holdings have ballooned -- rising from about SFr204bn at the end of 2010 to SFr470bn in August. Despite the difficulty of managing such a rapid increase, the SNB says the minimum exchange rate is still "the key instrument to avoid an undesirable tightening of monetary conditions."
The gold initiative could, if it passed, blow a hole in this policy.
Jean-Pierre Danthine, vice-chairman of the SNB's governing board, said last week that the central demand, to hold 20 per cent of assets in gold, "would severely restrict the conduct of monetary policy." If this limit had existed when the SNB first enforced its minimum exchange rate, he argued, the central bank would have had to buy gold in huge quantities as well as euro -- "which would almost certainly have caused the foreign exchange markets to doubt our resolve to enforce the rate."
It is rare for the SNB to take such a stance on what is purportedly a political issue, so these comments show how sensitive policy makers are when it comes to the credibility of their policy on the franc. Thomas Jordan, chairman, said in September the SNB had not had to intervene to enforce the policy since 2012. But the Swiss franc is still trading close to SFr1.20 to the euro -- with the euro's weakness and renewed global risk aversion keeping it under upward pressure. There is continued speculation that the SNB may eventually resort to negative deposit rates -- as the ECB has done -- to keep the currency in check.
The central bank is also deeply concerned about its ability to manage its vast reserves. Mr Danthine pointed out that a ban on gold sales could mean that gold eventually accounted for the bulk of the SNB's assets -- it would be obliged to buy gold every time its balance sheet expanded and to sell euro every time it contracted.
He also noted that gold holdings would not earn interest or dividends, and underlined other absurdities inherent in the initiative, such as repatriating gold stored in the UK or Canada, where it could most easily be sold if needed, or stipulating that reserves meant for use in emergencies could not be sold at all.
It is not yet clear whether the measures stand any real prospect of becoming law. Population growth and mass communication have made it easier to gather the 100,000 signatures needed to put initiatives to a public vote in Switzerland, but only 10 of 66 initiatives that have gone to referenda since 2000 have passed. Opinion polls will not appear until later this month, and have proved unreliable before previous votes.
But Scotland's independence referendum last month was a reminder of how rapidly political risks can come to the fore in currency markets. Analysts at Nomura warn that speculators may test the exchange rate floor if initial polling results were to show support for the public vote in coming weeks.
The vote warrants close attention, says Derek Halpenny, a strategist at Bank of Tokyo Mitsubishi. He thinks the SNB could -- given a long enough lead-in time -- both increase its gold holdings to the level the initiative requires, and maintain its minimum exchange rate. This could have knock-on effects in forex markets, because it would need to convert euro into dollars to fund gold purchases.
Analysts say the other logical possibility -- meeting the 20 per cent criterion by shrinking foreign exchange reserves -- would make it impossible to enforce the cap on the franc.
In the long term, though, Mr Halpenny argues that "a shift back towards much larger gold holdings would only help reinforce the franc's safe-haven status. ... The imposition of a limit would be seen as reducing the ability of the authorities to devalue the franc in order to lift inflation."

Silver price-fixing lawsuits consolidated in Manhattan federal court

By Brendan Pierson
Tuesday, October 14, 2014
NEW YORK -- Litigation alleging that Deutsche Bank, Bank of Nova Scotia, and HSBC illegally fixed the price of silver has been centralized in Manhattan federal court.
Lawsuits filed by investors since July over the alleged price-fixing were consolidated on Tuesday in the U.S. District Court for the Southern District of New York, following an order issued last Thursday by the U.S. Judicial Panel on Multidistrict Litigation, a special body of federal judges that decides when and where to consolidate related lawsuits.
The panel ruled that the cases should be handled by U.S. District Judge Valerie Caproni in Manhattan, who is already overseeing similar litigation over alleged gold price-fixing.
... For the remainder of the report:

Faber's likely last time on BNN: Gold and silver markets are manipulated

10:31p ET Sunday, October 12, 2014
Dear Friend of GATA and Gold:
Financial letter writer Marc Faber made on Friday what likely will be his last appearance on Business News Network in Canada -- not because of failing health or retirement but because he declared that the monetary metals markets are manipulated.
As soon as Faber made his declaration on BNN's "Business Day" program, moderator Frances Horodelski cut him off, asserting that time had run out.
Horodelski asked Faber if gold would reverse upward with other commodities when the U.S. dollar falls. Faber replied: "Precious metals can still go lower, because, as some knowledgeable people have proven, the markets are manipulated. But I don't think they will stay low. I think they may go lower temporarily and then rebound strongly, and if I were a reader, I would no longer trust central banks, and [instead] say, 'I want to be my own central bank and have some gold and silver stored in a safe place, certainly not in the U.S."
BNN's likely final interview with Faber is 9 minutes and 22 seconds long, with the comments about gold and silver market manipulation coming at the 8:15 mark. Until BNN takes it down, it can be watched at the network's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.

Koos Jansen.....

Turd Ferguson Interviews Koos Jansen

Turd Ferguson interviewed me last Thursday (October 9, 2014), a conversation worth sharing because we talked about a lot of subjects, like Chinese gold demand (government demand and non-government demand), the Shanghai Gold Exchange, the PBOC, the SDR, the IMF, the Turkish gold market, the Chinese silver market, etc. There were of course a thousand things I forgot to mention, but I guess that’s inherent to an interview.

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SGE Chairman: 2013 Chinese Gold Demand Was 2000t

This is the final blow for the ones who still couldn’t comprehend, after all evidence presented, the amount of Chinese non-government gold demand in 2013. At the LBMA forum in Singapore June 25, 2014, one of the keynote speakers was chairman of the Shanghai Gold Exchange (SGE) Xu Luode. In his speech he made a few very candid statements about Chinese consumer gold demand, that according to Xu reached 2,000 tonnes in 2013. In contrast to the Word Gold Council (WGC) that states Chinese gold demand was 1,066 tonnes in 2013.
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China Buys 45t Of Gold Ahead Of Golden Week

The National Day Golden Week, a one week holiday in China mainland, yes, the Chinese name their holidays golden, began on October 1 this year, so that’s when trading stopped on the Shanghai Gold Exchange (SGE) and Shanghai Futures Exchange (SHFE). This means I only have half a story for you today.
The latest withdrawal data from the SGE always lags one week and is thus from week 39 (September 22- 26), other data from the SGE and SHFE covers week 40, which in this case covers only 2 days (September 29 – 30).
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Confirmation PBOC Doesn’t Purchase Gold Through SGE

Last week I wrote Scotiabank had released an unveiling report  on Chinese gold demand, written by Na Liu of CNC Asset Management Ltd.. In the report Na stated what I’ve been publishing for over a year: the amount of gold withdrawn from the vaults of the Shanghai Gold Exchange equals Chinese wholesale gold demand. This report put a little smile on my face as it was another confirmation of my research (SGE chairman Xu Luode previously confirmed the relationship between withdrawals and demand, at the LBMA forum in Singapore).
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New York Fed Gold Stock Tumbles 15 Tonnes In August

Every month the Federal Reserve bank of New York (FRBNY) publishes the amount of gold it holds in custody for 36 foreign central banks and the IMF. After a significant drop in July of 24 tonnes, 15 tonnes were withdrawn from the vaults in August. Germany is the only country, that I’m aware of, currently repatriating gold from New York. This suggest all withdrawals year to date have been shipped to Frankfurt.

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China Aims For Official Gold Reserves At 8500t

China should accumulate 8,500 tonnes in official gold reserves, more than the US, according to Song Xin, President of the China Gold Association, General Manager of the China National Gold Group Corporation and Party Secretary. He wrote this in an opinion editorial published on Sina Finance July 30, 2014. Gold is money par excellence in all circumstances and will help support the renminbi to become an international currency as “gold forms the very material basis for modern fiat currencies”, Song notes.
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