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Shanghai Gold, Silver Volumes Surge To Records and Premiums Rise As Night Trading Begins

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Today’s AM fix was USD 1,275.00, EUR 976.79 and GBP 842.70 per ounce.
Yesterday’s AM fix was USD 1,280.75, EUR 981.87 and GBP 848.91 per ounce.

Gold rose $34.30 or 2.74% yesterday and closed at $1,285.40/oz. Silver surged $1.03 or 5.38% and closed at $20.18.  


Gold in USD - 1 Week - (Bloomberg)

Gold is marginally lower today, but is up 3.8% this
week and on track for its biggest weekly gain since October 2011. There
has been a realisation that ultra loose monetary policies are set to
continue reigniting bullion's appeal as an important diversification.

Indian gold demand fell sharply and was down 70% in
June from May. The Indian government’s taxes and capital controls have
had the desired effect in the short term but at what cost and how
sustainable will their measures be?

China continues to be the elephant in the room which is being ignored
by the gold bears and Chinese gold demand continues at record levels
and is compensating for the sharp fall in Indian demand.

Very robust demand in China is seen in the fact that Hong Kong jewellers and banks are having difficulty meeting demand and the rising premiums and record volumes on the Shanghai Gold Exchange (SGE).

Premiums on gold futures on the SGE yesterday closed at a $12.90 per
ounce over COMEX spot - COMEX at $1,283.30/oz and SGE at $1,296.30/oz.
Overnight the premium on the SGE rose sharply and is now at $35.94 -
COMEX at $1,275.30 and SGE at $1,311.14/oz (see ‘Gold Futures’ in table
below).


Gold Prices/Fixes/Rates/Vols - (Bloomberg)

Trading volumes for gold and silver on the Shanghai Futures
Exchange (ShFE) jumped to record highs today a week after the bourse
launched after-hours trading, driven by a surge in investment and
hedging demand, according to Reuters.


Cross Currency Table - (Bloomberg)

The ShFE launched night trading on July 5 to give investors in the
world's second-largest gold importer, soon to be the largest gold
importer,  a tool to manage risk and buy and sell gold and silver during
trading hours in London and New York as well as Chinese trading hours.
Weekly buy and sell trading volume for the most active gold contract
more than doubled from a week ago to 2.06 million lots as of Friday,
exchange data showed.

Daily transactions for gold rose to a record of
595,642 lots on Thursday, compared to an average of 483,529 lots in
June, the data showed.

Daily volume for the silver contract rose roughly six fold from a week ago to 2.23 million lots on Thursday.

Before
after-hours trading was launched, Chinese investors were often exposed
to global price fluctuations in the U.S. and European markets.


Shanghai Gold Exchange

“The extended hours could give China a better hold in the global gold market” noted Reuters.

That it will and we are gradually, and imperceptibly to most, seeing
China becoming one of the key players in the global gold market - from a
monetary perspective, from a supply and demand perspective and soon
from a price perspective.

China, its people, its banks, its central bank and its Gold Exchange
will soon exert more influence on the gold market than the speculators
who have greatly contributed to gold’s recent price weakness.

The Chinese understand the importance of gold as a store of wealth
and as financial insurance unlike many western speculators and banks and
the mass of the western public … today.  

Has Gold's 'Bubble' Burst Or Is This A Golden Opportunity? 
Our recent well-attended webinar has been uploaded to YouTube.

Topics covered in the webinar included:

* Outlook For Gold And Silver This Year and Coming Years

* Learning From 1970s Bull Market & 1975/76 Price Collapse

* Safest Way To Own Gold And Silver

* Paper and Digital Gold

* Knowing When To Reduce Allocations Or Sell

* Safest Way To Own Gold And Silver

* Extremely Negative Sentiment Towards Gold

NEWS
Gold heads for biggest weekly gain in nearly 2 yrs - Reuters

Gold Analysts & Dealers Most Bullish in Five Weeks After Fed - Bloomberg

Gold Heads for Best Week Since October 2011 on Stimulus Outlook - Bloomberg

India’s Gold Demand Likely to Rebound From August – Wall Street Journal

COMMENTARY
Video: "Have 5% In Bullion" - CNBC

The Stuff of a Gold Bear Reversal? – Got Gold Report

The War Against Gold - Roubini Wrong Again – Inteligencia Finaciera Global

South Africa's Gold Mine Crisis - BBC

For breaking news and commentary on financial markets and gold, follow us on Twitter.

 

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Fri, 07/12/2013 - 22:08 | 3747296 Manthong
Manthong's picture

gold.. schmold

all I know about this craziness is that I have a 25 year old watch that keeps going up in fiat value.

Fri, 07/12/2013 - 19:21 | 3746908 jomama
jomama's picture

gainesville has a sale, 40 bennybux over spot.  i bought 2 oz.  yay me.

Fri, 07/12/2013 - 19:35 | 3746937 fijisailor
fijisailor's picture

How long from order to delivery?  I'd be very interested to know.

Fri, 07/12/2013 - 19:14 | 3746885 toadold
toadold's picture

"Today suspected Chinese commandos raid Time building and throw George Soros out the window. They left a one way airline ticket for Japan in the name of Ben Bernanke."

Fri, 07/12/2013 - 17:50 | 3746716 DosZap
DosZap's picture

IF they are they are more stupid than I believed.At COST of mining levels they will lose their arse either way.A lose/lose situation.

Fri, 07/12/2013 - 14:15 | 3745989 Roger Knights
Roger Knights's picture

And China's two gold ETFs haven't yet opened shop!

Fri, 07/12/2013 - 12:25 | 3745580 Fox Moulder
Fox Moulder's picture

What does this mean?

http://jessescrossroadscafe.blogspot.ie/2013/07/brinks-is-being-drained-...

 

CME Reports That Brinks Has a Seventy Percent Decline in Registered Gold Bullion Supply

 

I am following up to make sure that there has not been an error in reporting.  The CME reports these figures one day in arrears, on a weekly basis, so the chart below is dated July 9. 

I have extended the calendar axis a bit to show the nearly vertical drop in inventory of registered bullion. 

In referring to the registered supply at Brinks, Nick notes that:

"Brinks is now being depleted.   They have gone from 447,199 on July 3rd to 134,525 on July 9th which is a drop of 312,674 oz."

If this is correct, then this is a decline of 70 percent in the gold held in private accounts at Brinks in just one week.

If this is data is correct, it would not be too much of a stretch to say that this has the appearance of 'a run on the bank.'   Again, I will wait to see if the CME issues a correction for this.  It seems almost incredible.

Where is the gold going?  It was not transferred from the registered to eligible category, and does not seem to have been transferred to any other COMEX vault.  I suspect it is flowing East.  And perhaps it is being taken to replace gold that has been rehypothecated from custodial vaults somewhere.

Someone seems to know something.   Rather odd things are happening.

One looks at this and wonders, what next?

 

 

 

Fri, 07/12/2013 - 13:35 | 3745882 Bastiat
Bastiat's picture

 

This might help with the big picture:

-- when the gold reserves of the participating central banks were depleted to whatever was considered the critical point. Gold sales and leasing would stop, gold would be more or less officially revalued much higher, and the central banks that had lost their metal through sales and leasing would buy it back at the higher price and begin the next era of price suppression.

When will this happen? Of course the Western central banks won't be letting GATA know in advance, but the recent startling repositioning of their agents in the gold market --

 http://www.gata.org/node/12780

Fri, 07/12/2013 - 13:18 | 3745827 Bay of Pigs
Bay of Pigs's picture

Well, I wouldn't count on GoldCore to provide any useful information concerning the real issues on gold (like your post).

These guys are a bunch of clueless MSM hacks. ZH should have dumped them long ago.

 

Fri, 07/12/2013 - 11:45 | 3745358 joego1
joego1's picture

It's just a matter of time before fiat starts revolving around PM prices and the time is getting short for the manipulators. The western world will be forced to play by different rules after the next crash; Heck, now even PBS  is on the wagon;

 

http://www.pbs.org/newshour/businessdesk/2013/07/ben-bernanke-as-easter-...

Fri, 07/12/2013 - 11:19 | 3745234 Save_America1st
Save_America1st's picture

How about the new physical Russian Gold Exchange and the physical Singapore Precious Metals Exchange?

World's first Physical Gold, Silver Exchange starts in Singapore

 

Jim Sinclair: The Singular Most Important Development in the Gold Market in My 53 Years Involved in Gold!

 

When these get rolling how will the Crimex be able to sustain their bullshit paper charade any longer?  Who will play the paper games with them other than just themselves?  Won't a default be imminent?

Fri, 07/12/2013 - 11:09 | 3745177 lakecity55
lakecity55's picture

What possible use could China have for this barbarous relic?

Fri, 07/12/2013 - 14:23 | 3746023 DosZap
DosZap's picture

What possible use could China have for this barbarous relic?

 

Bank it, they are going to use it to take over Reserve currency status(by default) by a Au backed Yuan.Coming much sooner than most even believe.

Fri, 07/12/2013 - 11:48 | 3745368 El Oregonian
El Oregonian's picture

How about making then running the "Golden Sword" into the heart of the squid, thereby killing it forever this time?

Fri, 07/12/2013 - 13:28 | 3745857 Imminent Crucible
Imminent Crucible's picture

It's a vampire squid. It can only be killed with a silver harpoon. At sunset on Durin's day.

Fri, 07/12/2013 - 11:06 | 3745157 Oldballplayer
Oldballplayer's picture

It will be interesting to see how the overnights react Sunday night to the China GDP. 

And, Gorld Bitchez.

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