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

Tyler Durden's picture





 

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 | Link to Comment 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 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Oh crap - Ben Shalom

 

Oh shit - Joe Keren

 

Well screw me - Blythe Masters

Thu, 10/25/2012 - 08:13 | Link to Comment Badabing
Badabing's picture

3 tons, you go Yang!

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

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

Thu, 10/25/2012 - 09:17 | Link to Comment 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 | Link to Comment fuu
fuu's picture

How many canned hams does he have?

Thu, 10/25/2012 - 09:45 | Link to Comment Parabolic
Parabolic's picture

And it's gone

Thu, 10/25/2012 - 09:46 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment eaglefalcon
eaglefalcon's picture

Bullions, sorry

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

GOING TO BE! GOING TO BE!

Thu, 10/25/2012 - 20:06 | Link to Comment 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 | Link to Comment 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 | Link to Comment Jam Akin
Jam Akin's picture

The tungsten Panda promises to be most popular of all.

Thu, 10/25/2012 - 08:00 | Link to Comment VonManstein
VonManstein's picture

bottoms up

Thu, 10/25/2012 - 08:03 | Link to Comment 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 | Link to Comment 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 | Link to Comment Alpo for Granny
Alpo for Granny's picture

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

Thu, 10/25/2012 - 08:50 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

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

 

Thu, 10/25/2012 - 08:56 | Link to Comment 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 | Link to Comment Richard Head
Richard Head's picture

Was that ferry really called Silversea?

Thu, 10/25/2012 - 08:55 | Link to Comment fasTTcar
fasTTcar's picture

Just shy of 100,000 oz.

20 Comex contracts.

Thu, 10/25/2012 - 09:24 | Link to Comment TwoShortPlanks
TwoShortPlanks's picture

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

Thu, 10/25/2012 - 09:27 | Link to Comment 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 | Link to Comment pig no 3
pig no 3's picture

And what's your adress ?

Thu, 10/25/2012 - 08:02 | Link to Comment jjsilver
jjsilver's picture

Time for another paper raid

Thu, 10/25/2012 - 08:39 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

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

Thu, 10/25/2012 - 08:09 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

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

Thu, 10/25/2012 - 08:49 | Link to Comment 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 | Link to Comment notadouche
notadouche's picture

Not worried about Canadian miners.

Thu, 10/25/2012 - 12:26 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment WinstonWolfe
WinstonWolfe's picture

3 tons??? what a lunatic...

 

 

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

Thu, 10/25/2012 - 08:08 | Link to Comment Monedas
Monedas's picture

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

Thu, 10/25/2012 - 08:09 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment 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 | Link to Comment SilverRhino
SilverRhino's picture

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

Thu, 10/25/2012 - 08:32 | Link to Comment 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 | Link to Comment 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.

Thu, 10/25/2012 - 08:21 | Link to Comment Shizzmoney
Shizzmoney's picture

This just in: Asian people know math!

Thu, 10/25/2012 - 08:23 | Link to Comment malikai
malikai's picture

USDCAD has completed it's post CB divergence and has reversed.

http://blog.quantsig.net/2012/10/25/usdcad-reversal/

Also, Gold live:

https://www.quantsig.net/live.html

Thu, 10/25/2012 - 10:20 | Link to Comment steelrules
steelrules's picture

Our stupid government here in Canada sells CDN$ and buys US$ anytime the our buck starts to climb against the green back, they do this to keep our exports to the US competitive, shitty part about that is the government is stealing Canadians wealth and standard of living in the name of jobs.

If that tank of gas cost me $75 instead of a $150 or if the Panasonic 58" cost me $700 instead of $1500 how much more money would I have to spend into the economy? we could have roaring economy here in Canada and in the end it would help the US too by increasing your exports and cross border traffic. 

I guess it's a race to the bottom for all the worlds fiat, at the expence of everyones standard of living. 

 

Thu, 10/25/2012 - 08:26 | Link to Comment bentaxle
bentaxle's picture

3 Tons! Got some catching up to do.

Thu, 10/25/2012 - 08:25 | Link to Comment Monedas
Monedas's picture

Hot tub sex facts :    Coagulated cum is removed with one pass through the filter .... the pussy juice stays for days ?

Thu, 10/25/2012 - 09:27 | Link to Comment notadouche
notadouche's picture

Good to know.

Thu, 10/25/2012 - 08:25 | Link to Comment mickeyman
mickeyman's picture

What's his address? (the guy with the three tonnes of silver)

Thu, 10/25/2012 - 11:12 | Link to Comment Mr Pink
Mr Pink's picture

Whats his address? ( the guy with the dirty hot tub)

Thu, 10/25/2012 - 08:28 | Link to Comment Schlomo Bergstein
Schlomo Bergstein's picture

3000 kilograms at the eventual silver price of 500 an ounce is 48,000,000 dollars. This is how dynasties are made. 

Thu, 10/25/2012 - 08:50 | Link to Comment unrulian
unrulian's picture

when silver is 500...48,000,000 won't buy a loaf of bread

Thu, 10/25/2012 - 11:15 | Link to Comment Mr Pink
Mr Pink's picture

Every party needs a pooper....so we invited unrulian!

Thu, 10/25/2012 - 11:30 | Link to Comment ParkAveFlasher
ParkAveFlasher's picture

...but it will pay off my $48,000,000 mortgage!

Thu, 10/25/2012 - 11:18 | Link to Comment rqb1
rqb1's picture

empire of silver

Thu, 10/25/2012 - 08:33 | Link to Comment Bastiat
Bastiat's picture

In seismic terms, the plates are getting ready to pop.  9.0 on the sphincter scale for Blythe.

Thu, 10/25/2012 - 08:49 | Link to Comment tocointhephrase
tocointhephrase's picture

I just got a boner

Thu, 10/25/2012 - 09:00 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

I have a short stack of silver maple leafs and this Chinese guy has how much?

Thu, 10/25/2012 - 09:03 | Link to Comment Harry Dong
Harry Dong's picture

I've got 3 tons of nickels on pallets, does that count?

Thu, 10/25/2012 - 09:04 | Link to Comment Dubious Maximus
Dubious Maximus's picture

sure, if they're silver nickels

Thu, 10/25/2012 - 09:04 | Link to Comment Dubious Maximus
Dubious Maximus's picture

"D'uh!!" news item of the day: the Germans are thinking of doing an actual PHYSICAL annual count of their gold stack and not just accept a confirmation via letter for their worldwide deposits:  http://www.cnbc.com/id/49540593 

Thu, 10/25/2012 - 09:10 | Link to Comment Bahamas
Bahamas's picture

This coworker of mine just told me that his father had inherited 200 silver coins from a dead sister and an soon as he had the coins went to the pawn broker and sold them for paper money...what a moron..I told him: "if you find more, sell them to me. This mororon was so happy, he thought he had a deal and was glad the shop owner had bought all his coins without blinking....i betcha

Thu, 10/25/2012 - 09:15 | Link to Comment edifice
edifice's picture

It's sad, but many times people do not know what they have.

My father has probably 20 oz. worth of silver, in junk form and one Eagle (from me, as a present), collected over his lifetime. He can't see beyond the current dollar paradigm and doesn't believe the coins are worth anything. I told him to keep the coins and I'd let him know when I think the bubble top is near, so he can sell and not feel bad about it.

Thu, 10/25/2012 - 09:51 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Tell him to watch this. His mind will change. 

http://www.youtube.com/watch?v=1YQ-BAOaL9c&feature=relmfu

Thu, 10/25/2012 - 14:41 | Link to Comment Bahamas
Bahamas's picture

Bay of Pigs...thanks for the excellent link!! thank you very much !

Thu, 10/25/2012 - 09:55 | Link to Comment steelrules
steelrules's picture

Wake the  hell up China, corner the silver market already it is THE STRATEGIC METAL, trade your western fiat for real money and buy up the global supply, $50 billion should do it, and push the shorts off a cliff. $900 silver is possible we just need a central bank to pull the trigger.

Thu, 10/25/2012 - 12:58 | Link to Comment Winston Churchill
Winston Churchill's picture

Patience.

When they are good and ready.

2 more years at this rate, if WW3 doesn't come first.

Thu, 10/25/2012 - 10:11 | Link to Comment fabmax
fabmax's picture

I don't understand these audits. Americans could just move all of German gold from one compartment to another just before Germans visit -----this is how serious professionals operate.

Thu, 10/25/2012 - 10:39 | Link to Comment Bahamas
Bahamas's picture

How do you say money in French?  ...Argent

How do you say silver in French?.....Argent

Thu, 10/25/2012 - 11:03 | Link to Comment covert
covert's picture

be wise like the chinese

covert.ias3.com/expose

Thu, 10/25/2012 - 12:40 | Link to Comment Overflow-admin
Overflow-admin's picture

Same in Argentina... ¡Plata!

Thu, 10/25/2012 - 14:58 | Link to Comment dipsit
dipsit's picture

how do you say bank in Chinese?........ silver house

Thu, 10/25/2012 - 12:37 | Link to Comment edifice
edifice's picture

I want to see the look on the guy's face at the local coin shop when he goes to sell...

I know, he won't be selling to the local coin shop, but it would still be hilarious. Guy backs a truck of bullion up to the shop, "Yeah, I'll take this store, and ah, the whole block. Thanks."

Thu, 10/25/2012 - 12:53 | Link to Comment KingdomKum
KingdomKum's picture

Silver Bitchez -

 

we few,  we happy few,  we band of silver holders  .  .  .   

 

 

 

Thu, 10/25/2012 - 13:05 | Link to Comment muppet_master
muppet_master's picture

3 TONS of silver

he has amassed at home...stupid !! he gives his name and he says  he's got that much silver at home !! = here come and rob me !! = freaking idiot!!

anyways silver @ $32 or so...if he waits for $4.00 he'll be able to amass nearly 30 tons = 10X more ......IF he were ONLY patient.

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