Silver Demand In China For Wealth Protection To Climb to Record 7,700 Tons

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From Goldcore Gold Bullion

Silver Demand In China For Wealth Protection to Climb to Record 7,700 Tons

Today’s AM fix was USD 1,715.00, EUR 1,317.71, and GBP 1,063.24 per ounce. 
Yesterday’s AM fix was USD 1,708.50, EUR 1,321.04, and GBP 1,069.28 per ounce.

Silver is trading at $32.11/oz, €24.81/oz and £19.88/oz. Platinum is trading at $1,580.75/oz, palladium at $602.30/oz and rhodium at $1,070/oz.

Gold fell $6.00 or 0.35% in New York yesterday and closed at $1,700.90. Silver dropped to $31.52 in NYC trading in the late morning but recovered in the afternoon and finished with a gain of 0.19%.

Gold moved slightly upward on low volumes Thursday as the US dollar limited gains on the heels of the US Federal Reserve’s policy statement which will continue with QE3. 


Cross Currency Table – (Bloomberg)

“The Federal Reserve on Wednesday stuck to its plan to keep stimulating US growth until the job market improves even as it acknowledged some parts of the economy were looking a bit better.  In a statement after a two-day meeting, the central bank repeated its vow to keep rates near zero until mid-2015 and its pledge to keep supporting growth while the recovery strengthens.”

That means keeping rates close to zero until mid 2015 and to provide necessary means to support growth while the US economy recovers.

This morning the UK Q3 GDP figures are out at 0800 GMT.

Bloomberg reports that Chinese silver demand is set to climb nearly 10% next year as investors look to preserve their wealth.

Although China as the 2nd largest world economy may be in an economic slump, investors are seeking out silver as a value alternative investment.  Silver climbed 15% this year and ETF’s holding silver have gained 6.5%. Research from Beijing Antaike said that 33% of the country’s demand comes from jewellery and coins, the rest for use in photography, solar panels electrical appliances.


XAU/USD 3 Year – (Bloomberg)

“Many producers and investors have hoarded the precious metal in the form of ingots or unwrought silver.”

After the US Fed’s QE1, (December 2008-March 2010) silver rocketed 53%, almost twice the jump as gold, and for QE2, (ending June 2011) silver rose 24%. Morgan Stanley predicts that silver will again return more than gold after QE3 was announced this September.

Chinese national statistics show that jewellery sales rose 19.3% for the first eight months compared to last year.

 “I’m bullish on silver, so I personally have stockpiled 3 tons of it at home,” Yang Guohui, president at Hunan Yishui Rare & Precious Metals Recycling Co., said in Xiamen on Oct. 17. Yishui is based in Yongxing County, Hunan province, where about 20 percent of China’s silver is from, according to Huang Xiaoming, head of the local precious metals management bureau.

The spread that Chinese investors pay to the overseas prices is $40/kilogram which is due to government tax and transportation costs.  In May 2011, this grew to over $200/kilogram on the Shanghai Gold Exchange amid mass speculation.

Chinese solar power may increase demand. The government is growing the number of installations from 2.6 gigawatts in 2011 to 21 gigawatts by 2015.

Metal output from China who is the 3rd leading producer could reach 13,000 tons this year from mining, smelting, refining and recycling, according to Wang Jian, deputy head of the China Nonferrous (1258) Metals Industry Association.

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

 

NEWS

Gold Gains as Drop to Six-Week Low Spurs Buying; ETPs Set Record - Bloomberg 

Gold inches up as dollar drifts following Fed - Reuters

China Silver Demand to Climb to Record on Wealth Protection – Business Week

Couriers carrying millions in gold bullion to Iran in their luggage to beat Western sanctions – National Post

COMMENTARY

China Knows That Gold Is Rigged – Market Watch

The Germans Are Coming for Their Gold - CNBC

Bundesbank Slashed London Gold Holdings In Mystery Move – The Telegraph

Max Keiser Interviews Lars Schall on German Gold – You Tube

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Thu, 10/25/2012 - 07:58 | 2918054 Quinvarius
Quinvarius's picture

One dude has 3 tons?  Your short position cannot stand up to hoarding of that magnitude!

Thu, 10/25/2012 - 08:08 | 2918056 GetZeeGold
GetZeeGold's picture

 

 

Oh crap - Ben Shalom

 

Oh shit - Joe Keren

 

Well screw me - Blythe Masters

Thu, 10/25/2012 - 08:13 | 2918079 Badabing
Badabing's picture

3 tons, you go Yang!

Thu, 10/25/2012 - 08:17 | 2918081 THX 1178
THX 1178's picture

That guy's gonna be astronomically rich! Holy FART!

Thu, 10/25/2012 - 09:17 | 2918104 TwoShortPlanks
TwoShortPlanks's picture

Fuck-me, there's a picture of President (Target) Yangy, a basic map for the drone pilots, and everything.
http://www.5920888.com/eabout.asp?id=10

Oh dear, Yangy-boy needs to have a shipping accident, most motherfucking ricky-tick!

Fed should use their new Drone Stealth Helicopter to get him.
http://www.youtube.com/watch?v=-HnwhGgsgXc

Thu, 10/25/2012 - 09:24 | 2918203 fuu
fuu's picture

How many canned hams does he have?

Thu, 10/25/2012 - 09:45 | 2918251 Parabolic
Parabolic's picture

And it's gone

Thu, 10/25/2012 - 09:46 | 2918255 eaglefalcon
eaglefalcon's picture

3 tons = 100,000 ounces = 3 million dollars

The guy is doing well but not incredibly rich. That's the problem with silver, it's extremely heavy to carry and extremely large to store. After moving 2500 ounces from one state to the other, I sold silver billions and bought gold. Too much hassle.

Thu, 10/25/2012 - 10:29 | 2918309 Ag Tex
Ag Tex's picture

Think of the hassle of moving 5k oz of au when the ratio shifts 2 au to 1 ag in the physical markets in the very near future when paper and electronic markets are no longer desired, trusted and enforced.  A hassle certainly worth reconsidering. 

Thu, 10/25/2012 - 11:04 | 2918454 Harbanger
Harbanger's picture

2 oz of Silver for 1 oz of Gold?  Why?  It's unprecedented and if it happened it would last for minutes, I could see maybe 15ag to 1au.  He does have a point about weight.  You can carry maybe 3 monster boxes max. anything else needs a wheel barrel.

Thu, 10/25/2012 - 21:06 | 2918925 Ag Tex
Ag Tex's picture

First of all, the future is God's country.  Secondly, keep stacking.  The above ground ag supply is but a fraction of the above ground au supply.  <90% of the above ground ag has been consumed; never to be retrieved or recycled.  90-95% of all au extracted from the earth has been hoarded.  The esitimated above ground ag is one billion +- oz, while above ground au (excluding tungsten - w) is estimated to be seven billion + ounces.  The USGS has stated that at current trend, ag will be the first element on the periodic table to become extinct.

 

With regard to this being unprecedented, history shows that up until the late nineteenth century, ag has always been higher than au.  History has been taught in error.

http://www.sharelynx.com/chartsfixed/600yearsilvera.gif

 

Silver for profit, gold for yield.  There's nothing new under the sun.

Thu, 10/25/2012 - 18:05 | 2919970 eaglefalcon
eaglefalcon's picture

If you compare the size of a 1oz gold coin and that of a 1oz silver coin, the latter is almost twice as big as the former.  That's because gold is almost twice as dense as silver

 

Let's say silver gold ratio does drop to 15 to 1 (1oz gold = 15 oz silver), to carry or store equal amount of value, silver would be 15 times as heavy and would occupy 30 times space

 

That's why archeologist found plenty of solidus (Byzantium empire gold coin) in the far east but very few denarius (roman empire silver coin).  When traveling far, traders always carried gold coins, because they occupied much less space and weight, and 24 k gold was difficult to fake (try to bite gold and tungsten with your teeth and see the difference)

Thu, 10/25/2012 - 10:10 | 2918330 AL_SWEARENGEN
AL_SWEARENGEN's picture

"I sold silver billions and bought gold. Too much hassle."

      Somehow I doubt you'll be saying this at $500 per oz Silver..

Thu, 10/25/2012 - 17:46 | 2919943 eaglefalcon
eaglefalcon's picture

Bullions, sorry

Thu, 10/25/2012 - 11:20 | 2918591 THX 1178
THX 1178's picture

GOING TO BE! GOING TO BE!

Thu, 10/25/2012 - 20:06 | 2920198 Tompooz
Tompooz's picture

" it's extremely heavy to carry and extremely large to store."

Good protection against casual theft, too.

 

BTW, I love this link. Did you see that block of polished Jade on Mr Yang's desk? Not easy to lift that one either.

http://www.5920888.com/eabout.asp?id=10   and the delightful English..

Thu, 10/25/2012 - 11:30 | 2918623 SRSrocco
SRSrocco's picture

CHINESE PLAN ON MAKING SILVER PANDA AS POPULAR AS AMERICAN SILVER EAGLE

In 2012, the Chinese Mint will produce 8 million 1 oz Silver Pandas.  If they want to make their Silver Panda as popular as the Silver Eagle, I would not be surprised to see  50-75 million produced a year within 5 years.

You can read  more about it on SILVERDOCTORS.com:

Chinese Mint Increases Silver Panda Production An Astonishing 1233%!!

Thu, 10/25/2012 - 12:44 | 2918876 Jam Akin
Jam Akin's picture

The tungsten Panda promises to be most popular of all.

Thu, 10/25/2012 - 08:00 | 2918057 VonManstein
VonManstein's picture

bottoms up

Thu, 10/25/2012 - 08:03 | 2918064 Tango in the Blight
Tango in the Blight's picture

In tomorrow's headlines:

HOME INVASION AT THE HOUSE OF CHINESE INVESTOR, 3 TONS OF SILVER STOLEN

Thu, 10/25/2012 - 08:19 | 2918083 krispkritter
krispkritter's picture

Nah, he protected it just like ZHer's do:

http://www.youtube.com/watch?v=x7muCkKTSyo

Thu, 10/25/2012 - 08:47 | 2918129 Alpo for Granny
Alpo for Granny's picture

krispkritter..that was on time my friend. Needed the laugh.

Thu, 10/25/2012 - 08:50 | 2918136 GetZeeGold
GetZeeGold's picture

 

 

Don't try that at home....those guys are clearly professionals.

 

Thu, 10/25/2012 - 08:56 | 2918148 a growing concern
a growing concern's picture

I think you're supposed to do that in deeper water...

Thu, 10/25/2012 - 17:43 | 2919926 Richard Head
Richard Head's picture

Was that ferry really called Silversea?

Thu, 10/25/2012 - 08:55 | 2918144 fasTTcar
fasTTcar's picture

Just shy of 100,000 oz.

20 Comex contracts.

Thu, 10/25/2012 - 09:24 | 2918202 TwoShortPlanks
TwoShortPlanks's picture

Pfttt!!! That's nothin; Fly-Blown Masters has 20,000 contracts at the Morgue.

Thu, 10/25/2012 - 09:27 | 2918218 Sudden Debt
Sudden Debt's picture

I have arround 240 kilo's. I'm pretty sure that's about more than what my entire community has all together :)

Thu, 10/25/2012 - 10:50 | 2918469 pig no 3
pig no 3's picture

And what's your adress ?

Thu, 10/25/2012 - 08:02 | 2918063 jjsilver
jjsilver's picture

Time for another paper raid

Thu, 10/25/2012 - 08:39 | 2918066 GetZeeGold
GetZeeGold's picture

 

 

Turn the machines back on. Get back in there and sell sell sell!!!

Thu, 10/25/2012 - 08:09 | 2918067 Abraxas
Abraxas's picture

WTF! According to this I should be 100% up on my silver miners, instead of 60% down. Looking back two years, to make money, I should had been in PrettyGadgets.com or something. I don't get it.

Thu, 10/25/2012 - 08:10 | 2918073 JPM Hater001
JPM Hater001's picture

So let me ask an obvious question...

Are you not afraid of nationalization of any of the mines in any of the countries these mining interests represent?

Thu, 10/25/2012 - 08:19 | 2918085 MassDecep
MassDecep's picture

If it comes down to nationalization, we will be so far down that road to screwdome that life is going to be pretty difficult, even for "we the preppers".

 

Thu, 10/25/2012 - 08:21 | 2918088 GetZeeGold
GetZeeGold's picture

 

 

Too obvious......just buy dore bars and stay off the radar.

Thu, 10/25/2012 - 08:49 | 2918135 jvetter713
jvetter713's picture

I agree.  Buying the miners carries just as much risk as the potentially fraudulent SLV and GLD.  Stick to what you can hold.

Thu, 10/25/2012 - 09:28 | 2918220 notadouche
notadouche's picture

Not worried about Canadian miners.

Thu, 10/25/2012 - 12:26 | 2918835 silverserfer
silverserfer's picture

the risk of nationalization is very high over the next year globally. Nobody wants their resources to be exchanged for something that is about to become worthless.

Thu, 10/25/2012 - 09:26 | 2918211 Quinvarius
Quinvarius's picture

Honestly, I think miners are barely breaking even after all costs, to include replacement costs, are factored in.  They can't even afford to pay their miners in africa.

Thu, 10/25/2012 - 08:11 | 2918068 kill switch
kill switch's picture

 In a statement after a two-day meeting, the central bank repeated its vow to keep rates near zero until mid-2015 and its pledge to keep supporting growth while the recovery strengthens.”

 

Now who could possibly believe this shit???? That statement above is intellectually degrading

Thu, 10/25/2012 - 09:23 | 2918200 The Continental
The Continental's picture

"The beatings shall continue until moral improves"

 

"The printing shall continue until the bankers' dead paper assets levitate."

Thu, 10/25/2012 - 08:08 | 2918069 WinstonWolfe
WinstonWolfe's picture

3 tons??? what a lunatic...

 

 

(many years later)....ahhh makes sense

Thu, 10/25/2012 - 08:08 | 2918070 Monedas
Monedas's picture

Chinese cruise missles have 600 trounces of silver, each .... mostly in the batteries !

Thu, 10/25/2012 - 08:09 | 2918071 JPM Hater001
JPM Hater001's picture

Stack stack stack stack stack.

That's about all I have to say about that - Forest Gump

Thu, 10/25/2012 - 08:16 | 2918080 Monedas
Monedas's picture

Life is like a box of chocolates .... if the core temperature goes above 106 degrees Fahrenheit .... we have a meltdown !

Thu, 10/25/2012 - 08:20 | 2918086 D-liverSil-ver
D-liverSil-ver's picture

3 tons of silver and he just told the whole world.

I wonder if his life insurance rates will go up.

Thu, 10/25/2012 - 13:14 | 2918942 Jam Akin
Jam Akin's picture

He will need to guard against all those alchemists who will try to turn lead into silver.

Thu, 10/25/2012 - 20:42 | 2920298 SilverRhino
SilverRhino's picture

You can find a ton of silver in each nuclear reactor as well.  

Thu, 10/25/2012 - 08:32 | 2918087 johnnymustardseed
johnnymustardseed's picture

Three tons of silver, you would need like a billion people to haul that away...... oh wait

Thu, 10/25/2012 - 08:47 | 2918130 Tango in the Blight
Tango in the Blight's picture

You need 96,452 people if they each carry a 1 oz coin or bar. And you take away the rest.

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