• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

Gold “Fever” In Asia And Central Bank Demand Could Cause An “Earthquake” In The Gold Market

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Thu, 07/21/2011 - 08:13 | 1476454 bigdumbnugly
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money money money money money money money...


Thu, 07/21/2011 - 08:14 | 1476456 Xibalba
Xibalba's picture

EUR/USD going full retard....2X 100pip swings this morning already.  

Thu, 07/21/2011 - 08:15 | 1476457 freethinker4now
freethinker4now's picture

Thats Chinese music to my ears

Thu, 07/21/2011 - 08:18 | 1476459 cossack55
cossack55's picture

C'mon 10.0

Thu, 07/21/2011 - 08:20 | 1476461 Roger Knights
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"Asian and central bank demand for physical gold bullion is not speculative rather it is smart money which is passively diversifying and buying and holding for the long term."

This elephant in the room is so obvious -- but US-centric gold bears refuse to see it. They keep babbling about bubbles and baubles.

Thu, 07/21/2011 - 08:22 | 1476465 j0nx
j0nx's picture

Sucks when the rest of the world is catching up to the United States' standard of living for the past 60 years and we all realize that resources on this planet are finite. Just a matter of time now.

Thu, 07/21/2011 - 08:22 | 1476468 goldfreak
goldfreak's picture

too many positive articles on gold in the media? A bad sign?

Thu, 07/21/2011 - 09:03 | 1476643 CH1
CH1's picture

Maybe the beginning of the parabola.

Thu, 07/21/2011 - 11:34 | 1477276 gdogus erectus
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They have to put a few positive articles on gold in the MSM now before the big run-up so that in the future they can re-write history on how the MSM was all over it and offer articles like this up for proof.

Thu, 07/21/2011 - 08:24 | 1476474 TradingJoe
TradingJoe's picture

So far this morning no trace of "buying", futures slightly up, respective ETFs DOWN!

Looks like markets are setting up for another NO VOLUME MeltUp "on EURO ZONE PROGRESS" :))))

Thu, 07/21/2011 - 08:28 | 1476488 bigdumbnugly
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>euro zone progress<

another to add to the growing list of oxymorons


Thu, 07/21/2011 - 08:37 | 1476532 TradingJoe
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Oh Dear! Another "wise guy"! :))

Thu, 07/21/2011 - 09:04 | 1476648 CH1
CH1's picture

Hong Kong Metals Exchange opens tomorrow.

Could be entertaining.

Thu, 07/21/2011 - 08:26 | 1476479 newstreet
newstreet's picture

Tyler must have a really big GLD position to unload.

Thu, 07/21/2011 - 08:42 | 1476561 Strike Back
Strike Back's picture

Dumbass or agent, we don't invest in GLD due to counterparty risk.  If you're going to use the whole "they're lying because they want to profit" line that is so favored amongst the sheeple, at least pick a viable investing option that "they" would be profitting from.  And before you spout such an idiotic line, consider the how much your leaders and their financial backers have to benefit from their Dow/SP Index/Consumer economy to infinity line when the bulk of their wealth is held in stat quo equities.  Get fucked.

Thu, 07/21/2011 - 08:45 | 1476569 Strike Back
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Thu, 07/21/2011 - 08:31 | 1476497 Spigot
Spigot's picture

Spin this as a "demand" thing focus on far east "central banks", do not focus on the reality: dumping dollars.

Thu, 07/21/2011 - 08:34 | 1476510 youngman
youngman's picture

I still think in the new future....all the hard metals will be owned by the Asians, Russians, and Indians....and the Western world will be trading only paper gold and silver...

Thu, 07/21/2011 - 08:38 | 1476537 gwar5
gwar5's picture

I got a feevah, and there's only one cure -----> GUH-OLD!

An interesting July 20th reminder (to RobotTrader?) from Peter Schiff:

“This had been the longest winning streak for gold since 1980 as far as consecutive up days.  I think more importantly the Dow Jones broke down Monday to less than 7.8 ounces of gold, that’s the first time it has been below 8 ounces in this entire bull market.  

So the Dow is even lower today in terms of gold than it was in March of 2009 when the index was at 6,500.  That shows you how much real value is being lost nominally even as the market goes up. That bodes very well for gold as an asset class, as an inflation hedge, that not only is it rising, but it is rising relative to stocks.”

-- Peter Schiff, KWN

Thu, 07/21/2011 - 08:43 | 1476567 Spigot
Spigot's picture

Someone is prepping the public message/meme when the dollar tanks vis a vis gold, oil and commodities (taking over the role of real money vs the broken money system) its about "those people over there doing something (speculators, central banks, etc).

Thu, 07/21/2011 - 08:45 | 1476576 Scroto Gaggins
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“central banks have to tread lightly, as sizable purchases could jolt the relatively small gold market.”

What does this tell you?


No gold standard means tillions/quadrillons of worthless dollars printed while gold remains @ $1600/oz.  I would like to know what the "real" price of gold/oz would be if we revalued it to all that worthless fiat in circulation (paper, and electronic).  While we are at it, lets end naked shorting. 

Thu, 07/21/2011 - 09:08 | 1476668 Long-John-Silver
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To reinstate a Gold standard the price would need to inflate to $24,400 per Troy ounce.

Thu, 07/21/2011 - 09:25 | 1476736 tarsubil
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As of right now? What about two years from now after much more printing? At what point does valuing gold in dollars become useless? At what point afterwards does everyone realize this?

Thu, 07/21/2011 - 11:08 | 1477163 RockyRacoon
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Ya know, if I knew as little as you do about gold and markets I'd keep my mouth shut.

Thu, 07/21/2011 - 12:55 | 1477596 Temporalist
Temporalist's picture

Hey Rocky would you really mind a $24k POG?  I don't think so.

Thu, 07/21/2011 - 09:17 | 1476682 Spigot
Spigot's picture

Exactly, see my post above. There are 165,000 tonnes of gold in above ground storage, no lack of supply. People want it and are not selling it at these prices. The comment about "have to watch due to even small purchase in small market causing price dislocations" is really a warning in disquise...


Back in the late 80's there was discussion that the next "World War" would be financial in nature...

And of course the title of the thread "Nuclear" war now about pricing gold (and all fiat in relation there unto)...

...and of course its all those "yellow bastards" who are "doing it to us"...scape-goat framing...

Thu, 07/21/2011 - 11:57 | 1477347 DosZap
DosZap's picture


Last figure I had was $57,000 per ounce.

Thu, 07/21/2011 - 08:48 | 1476590 MiningJunkie
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With the funds owning less than 1% gold exposure, I would say that this "gold fever" is an ailment borne by the short hedgies...

Thu, 07/21/2011 - 08:48 | 1476593 MiningJunkie
MiningJunkie's picture

With the funds owning less than 1% gold exposure, I would say that this "gold fever" is an ailment borne by the short hedgies...

Thu, 07/21/2011 - 09:33 | 1476725 Clint Liquor
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'Gold fever' is an ailment afflicting those with wealth denominated in Fiat currencies controlled by morons.

Thu, 07/21/2011 - 10:31 | 1477026 Spigot
Spigot's picture

Might add that only 1-2% of the total volumn of trade is in physical vs 98-99% in paper. Other than Sprout (and certainly not the ETFs) I do not know of other sizeble physical allocations (maybe recently discussed Texas University Endowment).

Thu, 07/21/2011 - 12:00 | 1477355 DosZap
DosZap's picture


With LESS than .8% of Americans holding /owning ANY Gold, I would say the Bubble talk via MSM  is TRASH, and is used to scare people from owning it, physically.

Thu, 07/21/2011 - 08:56 | 1476619 SoNH80
SoNH80's picture

I don't bother timing short-term gold price swings in the (ultra-compromised) futures/paper markets.  I don't think that the long-term trend for gold is like an earthquake-- sudden, violent, transitory.  Gold is a glacier--- slow, steady, inexorable, unstoppable-- in the current geopolitical/economic environment.  Glaciers don't seem too exciting on a day to day level, but they carved out the Great Lakes, and moved thousand ton boulders hundreds of miles like they were marbles, or pieces of lint.  For every little price-suppression victory by the boyz, there's millions of Asians and Arabs buying in.  Small scale often, sometimes not so small scale.  Gold is a vote for lack of faith in fiat currencies.  The glacier stood still from 1981-2001, but it's moving again, and reshaping the landscape.

Thu, 07/21/2011 - 09:27 | 1476752 tarsubil
tarsubil's picture

Very good post, IMHO.

Thu, 07/21/2011 - 13:02 | 1477637 Temporalist
Temporalist's picture

I too like the imagery and analogy.

Thu, 07/21/2011 - 10:28 | 1477016 Spigot
Spigot's picture

Damn, EscKey, you are buying big gobs o' dat stuff again?!? !8-o

Thu, 07/21/2011 - 15:11 | 1478234 PulauHantu29
PulauHantu29's picture

escapekey, what does this mean, "registered silver (or gold) down"....does this imply increased buying? decreased stores?


Thu, 07/21/2011 - 09:07 | 1476667 Mitch Comestein
Mitch Comestein's picture

Asian fever bitchez.

Thu, 07/21/2011 - 11:35 | 1477278 Monedas
Monedas's picture

Our dark skinned  Aryan brothers of India and our, equally endowed with Neandertwat genes, Asian brothers have much in common with us i.e. they are savers and essentially conservative people ! It's the Zimbabwians that disappoint us with their want of Neandertwat, prepare for "Winter" hoarding instincts ! Mugabians are the missing link ! Monedas 2011 Northern Latitudinists....shed your chains of Liberal guilt !

Thu, 07/21/2011 - 11:32 | 1477268 HungrySeagull
HungrySeagull's picture

It's easy for a Central Bank to hire 2000 people to buy one ounce per day and aggregate it. That way they still get the gold in bulk but not in the numbers that causes any pain. A thousand little sticks instead of a butcher knife chop.

Thu, 07/21/2011 - 12:52 | 1477570 Hook Line and S...
Hook Line and Sphincter's picture

Westerners have a very circuitous way of perceiving Gold 'premiums'.

Talk about nominal thinking!

The only way we should be thinking is in terms of discount. When we begin to speak of "AU" paper trading at a discount to "AU" physical, then the populace of the West will have arrived at the point of proper perspective.

Thu, 07/21/2011 - 15:09 | 1478218 PulauHantu29
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RE in China is massively overpriced...and the savers there are getting the same screw-job as in the USA, i.e., extremely low interest on savings....basically wealth destruction. The mechanism of this type of distortion is lclearly explained in William Greider's book, Secrets of the Temple.

Anyway, it is reasonable for them to move some of their vast wealth into other hard assets like gold. Makes sense to me.

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