World Gold Council

GoldCore's picture

Gold Flows East As Three Pieces Of Bacon Sell For €105 Million





Yesterday, the World Gold Council released its Gold Demand Trends 2013 Report which demonstrates quite clearly that the Chinese continue to accumulate gold; gold continues to flow east to both government and consumer channels.

 
Tyler Durden's picture

Market Awaits Coronation Of The QEeen





Japan growth cut in half, Europe growth cut by more than half, but none of that matters: today it will be all about the coronation of QEeen Yellen, who testifies before the Senate Banking Committee at 10am. Not even Japanese finance minister Aso's return to outright currency intervention warnings (in addition to the BOJ's QE monetary base dilution), when he said that Japan must always be ready to send signal to markets to curb excessive and one sided FX moves and it is important that Japan has intervention as FX policy option, which sent the USDJPY back up to 100 for the first time since September 11 made much of an impact on futures trading which after surging early in the session following the release of Yellen's prepared remarks, have now "tapered" virtually all gains. Certainly, the follow up from Europe doing the same and also warning it too may engage in QE, has been lost. Which is odd considering the entire developed world is now on the verge of engaging in the most furious open monetization of virtually everything in history.

 
Tyler Durden's picture

China Opens Largest Private Gold Vault With Capacity For $82 Billion Worth Of Precious Metal





In the Chinese bastion of capitalism, where there is demand, there will be supply. And in this case, the supply of gold storage is to be found in the Shanghai Free Trade Zone, where the physical gold ends up in custodial limbo as it is not considered "imported" by China. In fact, the gold is theoretically in no man's land and as such can be reexported out of China, or sent deeper into the mainland, to China's banks or private buyers, on a whim. Of course, all that is on paper. If and when the Communist Party says "enough" all the gold in the FTZ would be "reappropriated."  Bloomberg reports, that a gold vault that can store 2,000 metric tons, double China’s projected consumption this year, opened in Shanghai this month as owner Malca-Amit Global Ltd. seeks to benefit from rising demand in Asia’s largest economy.

 

 
Tyler Durden's picture

Turkey Gold Demand Spikes To 8-Year High (As Price Drops)





As gold prices have fallen, yet another nation is choosing to use the drop to build its reserves. As Bloomberg notes, Turkey’s gold imports that doubled this year are set to reach the highest level since 2005 as the metal's price heads for the first annual drop in 13 years. As Commerzbank notes "there seems to be a lot of interest in physical gold at the current low price," as Turkey imported 251.4 metric tons of gold since January - the biggest tonnage increase since at least 1995 (a rate almost 60% more than 2012's average monthly rate). Turkey was the fourth-largest buyer of gold last year, after India, China and the U.S., World Gold Council data show.

 
GoldCore's picture

Turkey’s Gold Imports In 2013 May Surpass Record Over 269.5 Metric Tonnes





Turkey has been aggressively adding to its gold reserves in recent years and now has the world's 11th-largest gold reserves.

 
GoldCore's picture

Gold Very Strong In November - Returned 4.93% On Average In Last 10 Years





China bought more than 100 tonnes of gold from Hong Kong for a fifth straight month in September as demand for bullion bars and jewellery stayed strong. Chinese demand appears to have fallen marginally in recent days but remains on track to overtake India as the world's biggest store of wealth gold buyer this year.

 
Tyler Durden's picture

Eric Sprott's Open Letter To The World Gold Council





Dear World Gold Council Executives;

As you very well know, the business environment for gold producers has been extremely challenging over the past few years. While demand for physical gold remains extremely strong, prices on the COMEX have fallen precipitously. This contradictory situation is the single most important obstacle to a healthy gold mining industry.

In my opinion, the massive imbalance between supply and demand is not reflected in prices because available statistics are misleading...

 
Tyler Durden's picture

Guest Post: Why We Face Ruin





Historical data tells us that the unemployment falls when the confidence ratio is high. Now, there are three ways for a government to increase that confidence ratio: 1) increase debt; 2) sell off gold; and/or 3) pray for the price of gold to fall (obviously in a non-manipulative manner that doesn't direct profits to favoured entities). The fall in confidence that we observed in the latter half of the last decade was entirely due to the rising price of gold. Look at what that did to the unemployment rate! Clearly the fault of gold-bugs and conspiracy theorists. The rising price of gold completely overrode the excellent work of the Government in driving up the country's debt.

 
GoldCore's picture

Gold Spikes 3% After Debt Ceiling Rises & U.S. Downgrade





The U.S. is engaged in fiscal and monetary policies that are akin to a Banana Republic.

In addition to electronically creating out of nothing $85 billion every month to buy its own debt in the form of bonds, the U.S. is also borrowing more money than it is authorized to borrow, from itself again.

 
Tyler Durden's picture

Gold Price Premiums Hit Record In India: 8% Above London Spot





As we noted two days ago, this story is just further proof of the complete and total mess that has been made of the Indian gold market over of the course of this year due to government intervention. The other part of the problem is that when you are dealing in physical supplies you can’t just deliver paper contracts. Somehow we don’t think that would cut it for Indians on festival days or their daughters’ weddings.

 
GoldCore's picture

U.S. Debt Limit To Be Raised For 18th Time In 20 Years - Gold Vulnerable Short Term But Real Record High Likely





The dangerous habit of politicians and governments continually ‘kicking the can down the road’ cannot go on indefinitely. Eventually, the ramifications of this profligacy will be clear to all.

Yet another increase in the debt ceiling and the increasingly parabolic nature of the rise in U.S. government debt will be very supportive of gold in the medium and long term.

 
Tyler Durden's picture

Futures Storm Higher On Hopes Can Will Shortly Be Kicked Once More





As reported previously, the latest meme surrounding the D.C. impasse is that Obama is suddenly willing to compromise on a short-term, supposedly six-week funding and debt ceiling extension, on the verge of his latest talks with republicans at the White House scheduled for this morning, as previously floated by the GOP. Throw some additional headlines such as "Ryan steps up to shape a deal" (in line with what we predicted yesterday) and "The ice breaks; fiscal talks set", by The Hill, and "GOP quietly backing away from Obamacare" from Politico, and one can see why futures are in breakneck soaring mode this morning, driven as usual by the two main JPY cross (USD and AUD), the first of which is less than 100 pips now away from being Stolpered out.  So will a compromise deal finally emerge 7 days ahead of the first X-Date, or will a last minute snag once again derail the (non)-negotiations? We will know quite soon.

 
GoldCore's picture

Gold Rush Cometh In Japan - 1 Quadrillion Yen National Debt To Bankrupt





Compared with Japan, the United States national debt is a mere $17 trillion or so. But if you convert that number into yen, it comes to about 1.6 quadrillion.

We laugh at children when they talk about bazillions and gazillions but a quadrillion is no laughing matter.  Measuring any currency in quadrillions brings to mind the many hyperinflations seen in the 20th and 21st centuries. For example,  the powerful and very wealthy Germany in the early 1920s and wealthy Zimbabwe, the breadbasket of Africa in 2008.

Japan's soaring national debt is already more than twice the size of its economy. 

 
Tyler Durden's picture

Equity Futures Storm Out Of The Gate, Trade At Session Highs





Equity futures stormed out of the gate on initial relief that a Syria attack may be avoided, which sent oil and the PM complex flash crashing lower. However, overnight, sentiment shifted that the Syrian escalation is at best delayed and as a result Brent regained all losses, with the precious metals also largely unchanged from Friday's close. Futures on the other hand, were perfectly happy to rise on the transitory Syrian risk moderation reduction, and then continue rising when Syria returned to the forefront, this time prodded higher by PMI exuberance out of China and Europe. How credible such manufacturing data remains to be seen. A surging USDJPY was also rather helpful, with the pair breaching 99.00 stops to the upside shortly after the European PMI data printed. And with the cash US market closed, and electronic equity trade halted at 10:30 Central, it is unlikely that concerns about all those "other" things that will define September, will seep in and it is likely the HFTs will push equities to session highs before reopening for the Tuesday trading.

 
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