This page has been archived and commenting is disabled.
Chinese Silver Exports To Drop 40%
After outperforming pretty much every asset class, most certainly stocks, and even gold, year to date, the "poor man's gold" may surge even more. The reason: China may cut silver exports by as much as 40%. As Bloomberg reports: "Shipments may decline from about 3,500 metric tons in 2009, said Feng
Juncong, chief analyst at the state-owned Antaike, without providing a
specific forecast. Customs data show exports plunged almost 60 percent
to 970 tons in the first eight months. Cancellation of an export rebate
in 2008 is also hurting shipments, she said." This is in line with recent expectations from the World Gold Council which has previously stated that China will likely become an increasingly greater buyer of gold both institutionally and at the retail level. And while we have discussed the impact that China's (temporary) ban on exports of rare earth minerals will have on prices (hint: not down), this will also end up driving silver prices higher. The catalyst, as usual, inflation: "There are Chinese investors now hoarding silver, along with other
resources, amid anticipation of higher inflation. China is
short of resources so these investors believe the metals will be more
valuable in the future." These investors are correct.
More from Bloomberg:
Reduced exports may bolster prices that are trading near a 30-year high on speculation that governments worldwide will take further steps to stimulate their economies, weakening currencies and increasing demand for assets that are a store of value. China, the third-largest producer after Peru and Mexico, revoked export rebates in August 2008 to curb use of natural resources.
“There is huge demand in China this year and that has affected exports, which were already hurt after the tax rebate was abolished,” said Ng Cheng Thye, head of bullion at Standard Bank Asia. “The demand is coming from all areas, including jewelry, investment and fabrication and this has resulted in a physical market shortage in the Far East.”
“China may sharply reduce its silver exports this year following the scrapping of the rebate and as domestic demand picked up amid expectations for higher inflation,” Feng said. This year’s 5,100-ton quota is unlikely to be fully used, she said.
China’s silver production, including mined, by-product output and recycled material, grew by an average 14.9 percent every year in the 20 years since 1990 to 10,348 tons in 2009, Feng said. Growth was mainly because of the fast-growing production of lead, zinc and copper, which generates silver as a by-product, Feng said.
The country’s silver output dropped 1.9 percent in the first eight months to 7,445 tons, she said. About 60 percent of China’s silver mined output is in the form of by-product of base metals, according to Antaike estimates.
The one natural better seller in the silver axe has long been JPM. The question of how the bank will cope with an increasing demand of investors for physical, as well as overall rising prices and creeping margin calls to its trading desk so far remains unclear. We were not surprised that none of the analysts on the conference call asked the question: after all, they are all in the same boat. It is also not surprising that there is an increased selling pressure on gold today, which even with the DXY and stocks reclaiming yesterday prices, remains at largely depressed levels. Some more skeptical observers believe the whole action over the past two days was merely enacted to break the very tight (and higher beta) correlation that PMs had exhibited vis-a-vis risk assets. So far, it is succeeding.
»
- 11839 reads
- Printer-friendly version
- Send to friend
- advertisements -
Blythe Masters yawns.
What she can't find her derivative dildo in China?
She's worn out from the gang-bang she's been taking from Timmuh and Bennah.
LOL, 40% more squeeze on Master's naked @$$.
Too bad China is not cutting it off to 100% like they've been doing to gold export. Let's hope it comes the next.
true patriots support china's economic policies..
sounds like a contradiction... but its true.
Not surprising, though. The Chinese have a much better (and recent) understanding of general economic clusterfuckery than we do on this side of the big pond. Go park at a strip mall and watch people, then go ahead and try to tell me with a straight face that they get it. Sad.
Strip mall in the US?
I was at the local Target on Saturday, and it was packed. Like Dec 24th packed. Perhaps they do get it? Living mortgage free on their 99 weeks, what else is there to do but max out the credit cards those evil banks twisted their arms to take?
Masters: "What, me worry?"
"I'm TBTF!"
I must admit that I'm quite impressed that she's been able to keep gold below 1346 all day. She really scared the shit out of a lot of longs yesterday.
Anyone trading gold for the last 10 years or more is NOT scared about 2-3% corrections. It is normal aspect of trading in this sector.
Yes and most of the newer longs are late to the party and have not been trading gold for the last 10 years.
Gold has a very long run still ahead. In fact, the party hasn't even started yet. Not too late to buy a kazoo and party hat.
To me yesterday was an obvious failed manipulation. Silver $25 by end of October now that this is out of the way.
Exactly. The "elite" call themselves such for a reason: Their mindset has them at the top of the world. Unfortunately, they would not be there if we did not recognize them as such. Fortunately, it is at the top of one's game when they are most vulnerable. That is why we take them down now. They are at their most vulnerable.
right on + A
Export Land Model, bitchez
Maybe the US should place tarriffs on China's REE and Silver exports?
hmmm ... slapping massive tarriffs on iPODs would cause the Chinese to oppress their workers further to keep labor costs low and resulting in civil unrest in China...
That will teach them.
... or so says the happy world of unintended consequences.
Mercantilist export model economy =
Perpetually undervalued currency =
chronic inflation =
strong public demand for precious metals.
Which part of this is difficult to understand?
And how many potential PM buyers are there in China?
"And how many potential PM buyers are there in China?"
This is a very interesting question to me. In terms of coinage, Chinese Silver Pandas been carrying a hefty premium across-the-board (dates and types). We know there is a LOT of hot new money in the PRC and significant inflation. My wife is from Beijing, her parents live there and they wholeheartedly confirm the latter.
Next time over, I am going to bring a dozen pristine Silver American Eagles for gifts. The Chinese as collectors are notorious for their Sino-centric buying habits; but if their beloved, rather mawkish Panda coins can't be had, what else will they move to?
Apply that statement to all of east Asia.
China has all the bullets now. JPM just crapped their pants! Smell that? Smells like banker feces......
Smells like fear.
Paraphrase;
"I love the smell of silver in the morning, smells like....Victory"
www.youtube.com/watch?v=ALi78x5aPOY
Which means, of course , that they're about to sell a shit load more of unbacked paper, in a vain attempt to stem the tide just like..today.
Good! I've got all the time in the world. Buying Silver for my kids. These are buying opportunities. Physical supply is drying-up and JPM knows it. I just hope we don't have to bail them out again....Fucking politicians
China knows what is at stake here. In time, paper has covered everything, and when it rains on this paper world, the facade will turn to mush. Inside it is only a group of dummies; one of a bald man with a printing press. The actual luminaries are long gone, and there conscious with them; they dream of drinking margaritas at sunrise while lecturing Congress about the rules that have been lined up ages ago by their patriarch banksters. China knows when it rains it pours.
As gold is on the backside of production and has been since 2000 at the earliest, and platinum production peaked last year, I have been waiting on silver. Wouldn't it be ironic if silver and oil production peaked at the same time (with gold and platinum only a decade earlier)? Call this event peak everything, and then you will know why the banksters papered the town in emerald green and fled.
reckless silver consumption left run rampant
silvereconomics youtube says many grams are used for a 32" plasma, any idea of truth here?
There is a growing consumption of Silver in solder used in electrical/electronic products. The lead in traditional tin-lead solder prevents the growth of metallic "whiskers" that, gradually, cause short-circuits.
But the use of lead in solder contravene's Europe's RoHS program. So silver is being used instead:
http://engineeringethicsblog.blogspot.com/2007/10/losing-by-whisker-lead...
http://www.ec-central.org/engineering/committees/U1/KEMET%20Whisker%20Pa...
Interesting note on the RoHS. Learn something new everyday!
Tyler -
sent u this via email...i think it is worth investigating...
http://www.silverbearcafe.com/private/10.10/whistleblower.html
a retired CFTC judge confesses....
Wow, that's quite a letter.
Dictators do what they want!
Why did the old bastard take so long to develop a conscience?
that old fool, he personally assured me he wouldn't say anything. What's the world coming to? Can't you commit fraud and keep it a secrete anymore?
Ah the "Head Up Your Ass" Coin"... how fabulous, though I doubt it is being minted in limited quantities though..... Very Nice
The Rectal Defilade "PROOF" was supposed to be a JPM Special Only Edition.
I so want that coin to be real! At least put that graphic on a coffee mug!
Bart Chilton is also threatening to go public with the CFTC investigation findings:
http://www.citywire.co.uk/money/silver-price-manipulation-public-deserves-answers/a437169
Sun Down... Moon Rise...
The moon shines in the dark, remember?
These are dark times....
ORI
http://aadivaahan.wordpress.com
I'm amazed silver is up so modestly on this news!
commercial sell orders slung at the market today and yesterday.
Good link, but don't expect anything to happen. The DOj has been sitting on several well documented manipulation complaints for over a year. Andrew Maguire is out of harm's way now working for Sprott. The last manipulation of $1+ over the last few days will be repeated until the election; after that who knows? I'm still buying on the dips; $10k in bullion @ 23.60; another $8k @ 23.39. I strongly believe silver will hit $28 Q1,2011. Please note that GSR has dropped from 65 to 58 in two months.
surprisingly, or not, I have the same price target for b4 the end of oct.
I have the same target to be reached within 3 trading days of next Fed meeting.. :)
apberusdisvet -
i dont expect anything from government...each branch and regulatory agency is controlled completely by the bankers...continued physical demand and the lunacy of the Crminal Reserve will propel both forms of real money to their true valuations and rightful roles n monetary affairs...
Yin Chongzi, Muquans!
This is all part of the bigger picture: Resource Wars.
That will be the story of the 2010s going forward. Everything is in play now: Agriculture, Fertilizer, Fossil fuels, Water, Arable land, Industrial metals and Precious Metals.
Precious metals hold a key niche because they're convertible. Into anything: local money, foreign currency, commodities, real estate, guns, labor, government officials etc....And they're a hedge against government screwing up the currency or the economy or both.
In the 2010s, He Who Is Without Gold (or other PMs) Better Own A Shovel.
Yep,
And when we had real wealth, why did we not go on a Global buying spree?.
Esp for Oil rights, we knew we had to have it.
We still have a 100yr supply we know about here, but the Enviro Nazis have stopped the removal and/or drilling just for back up reserves.
It's a very smart move to pay more, and use up other folks energy sources, and whatever else thats not replaceable.
Why do we bitch about Oil, when we can convert light vehicles, trucks,cars, etc, to LPG and cut our crude needs by 50%?.
We have MORE known reserves of it, that the entire Middle East.
Administrative Federal Law Judge Painter resigns from overseeing the CFTC after exposing his fellow Judge Levine:
http://www.scribd.com/doc/39746954/Judge-Painter-Notice-and-Order-dcpdf-...
Now, we should see Bart Chilton step up his activities against the paper gold & silver scams.
Hopefully they have the Airports on lookout, to keep them from bugging out.
Sounds like Judge Painter knows the diarrhoea has entered the aircon, and is attempting a pre-emptive duck and cover.
"The one natural better seller in the silver axe has long been JPM"
Hmmm. Didn't know JPM was a mining company, so that's where they are getting all that silver they are selling/hedging............
Why is the market not the least bit concerned about China no longer exporting things like Silver?
Haven't you heard? The notion that the real world, and the real economy, actually have to run on, you know, real stuff, is obviously crazy talk.
haven't you heard? it's a barbaric relic. plus...it's only for the poor people.
1 billion people x 10 oz's each = not enough supply. and when it crashes there will be 1 billion pissed off peasants in revolt. good story
China and others in the world are just beginning to lose patience and tolerance. As huge creditors to the Fed and US gov, they keep on getting their balls kicked: Value of US Dollar-denominated paper is on the road to planned obsolescence. Or put another way, debt default.
Not long ago commercial banks in china just launched paper silver account and also started to sell physical silver bullion. Just for silver bullion the buy back mechanism for banks is still not in place at the moment.
FB24601 - Can you show me any kind of evidence of this interesting claim? My understanding had been that until recently only Bullion 'shops' were selling silver and gold bullion/coins etc
stop,
I saw it also, they are setting up ETF's fopr them.
And, if I remember correctly Banks were also selling bullion.
Gold is not under pressure. The 50 dollar drop from 1380 to 1330 was mild. The advance in gold to recent highs was also mild, though the crowd is "breathless" at action. Too funny. This is nothing. Typical humans unable to grasp whole dollar moves of assets that are priced above 1000 dollars. We're just getting started here. Wake me when we're trading 150 dollar days in the 3500 to 4500 range. Snort.
GG
GG,
10/4, just a breather,(more like a belch) not even a real correction.
We need a couple of weeks, or more consolidation, for the next move.and you know it's coming.
PM's usually stairs up, elevators down.LOL
As this pot of shit gets worse, if you can't handle a $200/$300.00 a day swing, get out now.
Cause it's coming.
China is not such a commodity rich country compared to
the number of people living there.They only exported to
get their economy started.Soon they will export 0% of
their commodity's and only needing to import as much as posibble.
China produces the stuff now to trade for commodity's,
so I expect them to have some real buying power.
Lot of people still underestimate the power of this silver
bull market.Chinese just love silver for era's.
A bear market turning around after 650 years is uniek to see it
unfolding.
As the CPF index continues to exert its influence both domestically and internationally in metals and other forms of rare earth...
https://www.coininvestdirect.com/pictures/20604.jpg
bargain, for only 35 bucks!
it is getting more expensive now. I bought 10 about 2 months from Ebay, at $27/each
Here is cheaper, and they charge $12.95 for shipping up to $500
http://www.gainesvillecoins.com/category/374/China.aspx
blithe (adv.)- lacking true thought or consideration
masters of being that probably have to short an in(s)ane amount of silver positions, right?
this economic reality is such a farce.
With 2/3 of all Silver production coming from Base Metal by-product the Silver supply is relatively inelastic. Price increases cannot drive a substantial increase in production. Most of the primary Silver producers are small operations with market caps of less than 1B. So my question is:
When will KKR and Blackstone start buying up all the small Silver Mines in Mexico?
Repeat after me: "100 million people buying 100 ozs of silver"
How silver is that? 10B ozs. Mine supply is what? 700M? So 13 years mine supply.
Now say "100 million people buying 100 ozs of silver ever year for the next 5 years.
Can you see where I am going with the supply demand aspect?
How to you kill a banker ? You use Silver Bullets hahahhahahha
I was thinking buy a Krugerrand and a party hat. ;-)
Among the Louis Vuitton Sunglasses the many challenges caregivers face in the burberry outerwear the course of this disease is the prada handbags sale the loss of dignity Alzheimer's can bring prada shoes replica bring to people. My mother needed gucci????? needed everything done for her. And her rolex watch her oldest son -- her firstborn child prada belts on sale child -- with a tenderness and abiding burberry online abiding respect that exceed my capacity to cheap replica rolex to describe here -- did all that.Sometimes, fake prada that.Sometimes, people are frightened or even repelled prada handbags replica repelled by people with Alzheimer's -- and ????? ??? and it can be scary and disturbing. replica cartier watches disturbing. But for Jay, my mother was prada bag was until the last, as she had replica louis vuitton watches had been for each of her ten children from the Tiffany & co the first: She was beautiful. And isn't ???????? isn't that something the world needs to prada wallets women to remember about all the stricken, and hermes replica belt and the dying, and the forlorn and armani watches and marginal among us?Alzheimer's Caregivers: 'A Lesson prada handbags sale Lesson in Love'What Jay showed me -- prada womens sunglasses -- what he lived -- was this: prada belts for men this: To love someone is to serve burberry baby accessories serve them
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
cheap vps
windows vps
cheap hosting | ucvhost