Silver Bars Being Secured By HSBC – Buys $876 Million Worth From Poland

Tyler Durden's picture

From GoldCore

Silver Bars Being Secured By HSBC – Buy $876 Million Worth From Poland

Today’s AM fix was USD 1,692.25, EUR 1,268.84, and GBP 1,066.19 per ounce.

Yesterday’s AM fix was USD 1,692.50, EUR 1,268.17, and GBP 1,068.36 per ounce.

Silver is trading at $32.33/oz, €24.32/oz and £20.46/oz. Platinum is trading at $1,700.50/oz, palladium at $725.00/oz and rhodium at $1,200/oz.

 
Cross Currency Table – (Bloomberg)

Gold climbed $6.40 or 0.4% in New York yesterday and closed at $1,690.50/oz. Silver slipped to $31.79 in London, but it then climbed to a high of $32.34 in New York and finished with a gain of 1%.

Gold hovered near a 1 month high on Wednesday supported by loose monetary policies of central banks. There are renewed hopes regarding U.S. debt ceiling talks and the U.S. House of Representatives plans to pass a bill on the almost 4 month extension of the borrowing limit.


Total Known ETF in Silver, Jan 2008-2013 – (Bloomberg)

Silver has now rallied for 7 days due to the flood of inflows into silver backed ETF’s and investment demand for coins and bars internationally. Analysts polled by Reuters expect silver to rise in 2013.

Holdings of iShares Silver Trust, the world's largest silver ETF, stood at 10,689 tonnes on Jan. 22, up 604.9 tonnes, or nearly 6 percent, from the end of 2012.

By comparison, SPDR Gold Trust, the world's top gold ETF, saw an outflow of nearly 15 tonnes so far this year. 

This has helped silver prices rally over 6% so far this year and 4.5% last week alone. The close above $32/oz yesterday was bullish technically and could lead to silver testing the next level of resistance which is at $34/oz.

The U.S. Mint has sold out of 2013 American Eagle silver coins and will resume sales the week of January 28 when the US Mint said inventory would be replenished.

Chinese silver turnover surged to 2,200 tonnes on Friday and analysts say Chinese investor’s interest in silver is continuing to rise as many are looking at silver as a cheaper alternative to gold. 

Hence, trading volumes for the precious metal on the SGE soared in 2012.

Silver bullion imports by China remain robust too. Silver imports were 228 metric tons in December, according to data released by the customs agency.

There are also rumours that Apple is experiencing delays in producing the new iMac due to difficulty in sourcing industrial silver in volume in China. More silver than is typically used is utilised in the new 21.5" Apple iMacs. 

  

HSBC Buying KGHM Silver Bars 

HSBC has quietly moved into acquiring large amounts of silver bullion.

The bank has secured another deal to buy silver bars from KGHM which brings their total purchases of silver from KGHM alone in the last 12 months to $876 million or PLN 3.65 billion.

KGHM is one of the largest producers of silver in the world and is the second-largest producer of refined silver in the world.

They produce silver bars registered under the brand KGHM HG that are attested to by “Good Delivery” certificates issued by the London Bullion Market Association and the Dubai Multi Commodities Centre.


Silver Daily, 2010-1013 – (Bloomberg)

Listed metals producer KGHM signed an estimated PLN 1.67 billion deal on 2013 sales of silver to HSBC, KGHM said in a market filing yesterday.

The deal puts the total value of deals between KGHM and HSBC in the last 12 months to PLN 3.65 billion or $876 million, the filing read.

The Management Board of KGHM announced that on 21 January 2013 a contract was entered into between KGHM and HSBC Bank USA N.A., London Branch for silver sales in 2013. 

The estimated value of the contract is PLN 1,672,260,469.66. As a result of entering into this contract, the total estimated value of contracts entered into between KGHM and HSBC Bank USA N.A., London Branch over the last 12 months exceeded 10% of the equity of the Company and amounts to PLN 3,654,120,061.59.

The highest-value contract signed during this period is the above-mentioned contract. The criteria used for describing the contract as significant is that the total estimated value of the contracts exceeds 10% of the equity of KGHM.

KGHM is one of the largest companies in Poland and one of the largest mining & metallurgy companies in the world. 

The main customers of Polish silver in recent years have been the United Kingdom, Germany and Belgium.  HSBC appears to be one of their main customers now.

Respected and erudite, James Steel, the chief commodity analyst at HSBC Securities (USA) Inc. continues to be bullish on silver and recently said how “silver tends to track gold, except it over performs in a bull market”  and how he was “moderately bullish on silver” in 2013.


XAG/GBP Daily, 2010-2013 – (Bloomberg)



XAG/EUR Daily, 2010-2013 – (Bloomberg)

HSBC did not comment on the deal and it only came to light as KGHM is a listed company and had to report the deal which was then picked up in Polish media. 

The massive deal could simply be HSBC securing supply for the NYSE listed ETFS Physical Silver as they are the custodian.

Or it could be that senior people in HSBC are concerned about securing supply as they expect robust investment demand to continue and possibly increase resulting in higher prices.

 


NEWS

Standard Bank Says Physical Gold Purchases Unusually High - Bloomberg

Gold up on Japan stimulus, US stocks at 5-year high - Reuters

Gold ends back above $1,690 on safe-haven appeal – Market Watch

Davos leaders uneasy over glut of easy money - Reuters

COMMENTARY

Video: German Repatriation Of Gold Is "World Historical" - Yahoo

The Entrance To The Second Phase Of The Gold Market Ascendancy – JS Mineset

Silver Dollar From 1794 Could Go for $6 to $7 Million - Bloomberg

Gold Super-Spike To Be Dwarfed By The Mania In Silver – King World News

Gold, Jack Lew and the Circle Game – Financial Post

A Visual History Of Gold – Zero Hedge

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

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HoofHearted's picture

I'm thinking someone with a lot of SLV shares decided they wanted some of the physical metal. HSBC said, ok...just a few minutes. They call around and find someone in Poland has silver, so they say, Sorry I left it in my other pants pockets. Have to get back to you next week on that one. And now they have to pay out silver on the loans they have been getting in holding people's money in the SLV.

Sound about right?

SilverIsKing's picture

You know what they call Polish Silver?

Answer: Tungsten

Harlequin001's picture

Well if the futures market is a play on all the silver and gold still below ground then they're obviously going to have to go and dig it up to give you your money back.

It might take a while...

ParkAveFlasher's picture

Unfortunately the silver will take seven years to reach HSBC's HK facilities, after which it will take roughly two hours to make it to Apple's parts suppliers in SE Asia. 

Fuckin Polish, should have held out to $167/oz.  Could they have?

Hey what about all those silver vaults in London stacked to the ceiling?

THX 1178's picture

Whoever sold is a fuckin idiot.

ParkAveFlasher's picture

My point exactly!  Who junked me?

Harlequin001's picture

HSBC- We want to buy your silver.

KGHM- sure how much you willing to pay, there's a shortage you know...

HSBC - 30 bucks.

KGHM - Fuck off...

HSBC - or we'll have your license pulled.

KGHM - Sure, how much do you need?

HSBC - All of it.

KGHM - Haarumpph... let me guess, you want it by Friday...

HSBC - No, next options expiry will do. We have until then.

KGHM - or?

HSBC - The world as you know it will cease to exist.

KGHM - but to get this all out by then we'll have to blow up the planet anyway.

HSBC - That's not our problem. There's an option for that...

KGHM - Ok, ok. guess we'll just have to pull our silver stock out of first...

HSBC - sure how long will it take?

KGHM - Not long, we usually store it in SLV.

HSBC - er, what???

fockewulf190's picture

Silver Wheaton must be doing a "WTF, that´s our racket!!" by now.

indygo55's picture

The article doesnt say what the weight was. I wonder what they paid per ounce.

 

Wile-E-Coyote's picture

@SilverIsKing

Chemistry was never your strong point, was it?

RockyRacoon's picture

At least he got the color approximately right.

Sudden Debt's picture

The Polish said: SURE WE'LL SELL YOU SILVER!!!***

 

*** delivery in 7 years from now... maybe...

GetZeeGold's picture

 

 

Polish silver......almost as hot as Polish women......almost.

http://www.youtube.com/watch?v=F0zm9kFDobE

GetZeeGold's picture

 

 

Well played Amigo.

unrulian's picture

i had both...lost them in an unfortunate boating accident

RockyRacoon's picture

All with hips built to hang a kid off of.  Give 'em 30 years and they'll all have that mole on their chin with the 3 big hairs growing out of it.  Yeah.

I have to tell myself that....

Peter Pan's picture

I am amazed that some nation such as Spain or Greece doesn't make a silver play by putting in an order for $10 billion. This ought to ignite the silver market and make them a good profit or else give them the opportunity to kck off a silver based currency. Where are the Hunt Bros when you need them?

Peter Pan's picture

The Hunt Bros are still alive and might still get to see silver explode.

RockyRacoon's picture

The Hunts had about 20% of the silver market when COMEX changed the rules on them.  (Wikipedia says 30% but I doubt the figure.)  JPM now has over 25%.   Where's COMEX?

cifo's picture

That would not be allowed.

silverserfer's picture

the problem with the world today is silver is only money to smart poeple. all the stupid people, and there are a lot of them out there, are just fine with their foldin money.

Mae Kadoodie's picture

Polish those silver bars.

espirit's picture

I was wondering what HSBC was doing with all their laundered drug money.

Now we know.

Non Passaran's picture

... and it's nice to see it's not that different from what we have been doing with our laundered drug money.

Kaiser Sousa's picture

thats right you sociopath little banker fucks...

run....run....

run and try to gather all the physical Silver you can to cover that shit load of worthless paper you've shorted in order to suppress what aint gonna be suppressed for to much longer...

loosers.....

YA'LL KEEP STACKING....BRING THE PAIN....

FUCK YOU BERNANKE AND YOUR BITCH ASS BANKER BRETHREN.......

good morning all....  

Mad Mohel's picture

I actually think they are accumulating in order to sell more worthless pieces of paper. Those bastards still have a alot of fight in them and will milk their dirty little game to the very end. That sale should be blocked.

rqb1's picture

they will short until they go long

Josh Randall's picture

How do you steal a Pollock's Silver? Ask him for the key to his vault....

Mad Mohel's picture

Fuck HSBC, don't let them buy it. You know it will be used in some crooked shenanigans.

mesje's picture

Imo

KGHM stands as a good proof that soon commodities will be worth a bit more than.. usual.

It's certainly a company that has brought a lot of profit to its share holders. As such it was also a subject of government looting, etc.

Have a look at the share prices:

http://stooq.pl/q/?s=kgh&c=10y&t=l&a=lg&b=0

Looks somewhat familiar?

The overall conlusion is that polish silver is truly *almost* as shiny as women here.
However - I'm only with one women from the wide selection available I certainly hold more that one silver bar ;-)

Best greetings for ZH community from Poland.
Good to have you in this crazy world!

Rubicon's picture

Thank your for sharing you silver and your women. Im eternally grateful.

gaoptimize's picture

I heard Max Keiser on InfoWars.com yesterday, talking about how banks (specifically JPM) are systematically moving into commodities, including food and metals, in preparation for the end of the 1980-2012 bull bond market.  This supports that story line.

Bicycle Repairman's picture

Nobody is going to make money on PMs or commodities until the banks are long said items.  Then when Blythe has reversed her positions, you PM guys will make money along with her.

I wonder how many of you guys will be libertarians then?

MachoMan's picture

Probably about the same...  albeit with a really, really smug grin.

goldenbuddha454's picture

China is preparing for the eventual collapse of world currencies with the hope that they'll be able to establish the Yuan as the new "world reserve currency" pegged to Gold/Silver and commodities.  India should be ok as well as they naturally buy gold and hoard it.  The rest of us are going to be FU#^ED when our govt. decides that the PM's here need to be confiscated as back in 1933.  Franklin Delano Roosavelt-April 5, 1933 established the Gold Confiscation Act.

ItchyBeard's picture

Our Indian government will be pulling all sorts of tricks to separate the gold from it's people.

Dieselclam's picture

If they don't, then everything we know about gold theft world wide is wrong.

DosZap's picture

Our Indian government will be pulling all sorts of tricks to separate the gold from it's people.

Now that's a sight I would buy a ticket to.

Good Luck

Intoxicologist's picture

Roosevelt issued an EO requiring the delivery of all silver to the US Gov as well.

http://www.presidency.ucsb.edu/ws/index.php?pid=14741

You could keep your coins, though.  What a guy.

MFLTucson's picture

Silvers rise will be temporary due to the amount held in the ETF.  So long as these gangster bankers can raid the ETF’s and short the illiquid Silver market using naked shorting (banned for us infidels) Silvers rise will be temporary. 

gaoptimize's picture

How many must "stand for delivery" to call this bluff?  I think the time to play the naked short game is almost over.

whirling tword freedom's picture

I hope you are right but, I never underestimate the manipulators.... most of the time, that's a bad bet.  That being said, I'm stacking too.  I'm waiting for a rather large delivery... I hope this one doesn't go overboard like the last one did.

Ancona's picture

So then..........is that Blythes' signal to slam silver [again]??

news printer's picture

BALAMARA STARTS 2013 WITH NEW DRILLING PUSH
AT BOGDAN COPPER PROJECT, POLAND

In August 2012, Balamara announced the drill results from Hole B4 at Bogdan which
returned an intersection of 8.5mgrading 0.36% copper and 11.6g/t silver, including
1.3mgrading 0.60% copper and 13.5g/t silver (see ASX Announcement – 1 August 2012). 

http://www.infomine.com/index/pr/pb275133.pdf

Tapeworm's picture

THOSE are pitiful results. They will not be mined because of the horrid ratios. News of that sort should have cratered the share price.