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China Imports Record Amount Of Gold In December On Price Drop
Back in December, as always happens every year for the past 3, a margin call driven liquidation wave pushed the price of the gold to multi-month lows, providing merely yet another lowball buying opportunity (for which let's all thank John Paulson, again). One buyer who certainly would love to thank whichever marginal seller was liquidating their gold, is none other than China, which as was reported a few hours ago, imported an all time record 114.4 tons of gold in the month of December, or more than all the gold held by the Greek central bank (assuming it hasn't been confiscated by ze Germans or the ECB, or deposited in G-Pap or Venizelos' private HSBC safe in Geneva yet: a very aggressive assumption).
This means that for all of 2012, total China imports of gold have hit a staggering 834.5 tons, double the 431 tons in 2011, and that the PBOC's determination, whose official holdings are still a laughable 1054 tons, when in reality they are likely 3-4 times greater, to convert to a commodity-backed currency the day it decides to become the world's reserves currency, as we predicted back in 2011, is as steadfast as ever. Recall from the December 2009 edition of China Youth Daily, which we reported previously that State Council advisor Ji was saying "that a team of experts from Beijing and Shanghai have set up a "task force" last year to consider growing China's gold reserves. "We suggested that China's gold reserves should reach 6,000 tons in the next 3-5 years and perhaps 10,000 tons in 8-10 years," the paper quoted him."
This was in 2009. It is safe to say that the official (not reported) Chinese gold holdings are now around 4-5,000 tons, or 4x-5x more than the IMF number.
In the meantime, China's 2012 gross gold imports alone (ignoring its massive internal production, which happens to be the world's largest gold producer), have surpassed all of Japan's official gold holdings, and were just shy of Russia's and Switzerland's total official gold.
More from Bloomberg:
The imports in December compared with 90,764 kilograms in November, and were more than double the 38,650 kilograms a year earlier, according to the data. Net imports, after deducting flows from China to Hong Kong, were 84,687 kilograms in December from 61,787 kilograms a month earlier. China doesn’t publish such data.
China was expected to displace India as the world’s biggest gold consumer last year, according forecast in November from the producer-funded World Gold Council. Rising consumption in the country may help to offset concern that the metal’s bull run may be coming to an end as the global economy recovers. Spot gold is little changed so far this year, while the Standard & Poor’s GSCI Index of raw materials has risen 4.4 percent.
The increase in gold imports last year “was largely a result of income growth,” Jiang Shu, a senior analyst at Industrial Bank Co. Ltd., said from Shanghai before the data was released. “The Chinese are becoming more wealthy.”
Economic growth in China, the world’s largest gold producer, has boosted the country’s consumption of everything from copper to energy and farm commodities. The nation, which snapped a seven-quarter slowdown in the final quarter of last year, is the world’s largest base-metals user, the biggest importer of soybeans and the top crude-oil consumer after the U.S.
“We see demand continuing to be robust into 2013,” said Wang Xiaoli, chief investment strategist at CITICS Futures Co., a unit of China’s biggest listed brokerage. “The economy will recover, albeit slowly, while real interest rates will remain low and central banks will continue to accumulate. These are all bullish for gold.”
And all this with inflation in China still supposedly tame. Just wait until the trillions in new money created in 2013 finally find their way to the Chinese market and send inflation through the roof as happened in early/mid 2011, and when gold exploded. Once the increasingly more affluent Chinese middle class decides to once again lock up its wealth in the form of gold, then and only then, will gold finally cross the so far insurmountable $2000 resistance level.
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The story of the young bull and the old bull.
The Fed Reserve (and its agents) are shorting and China is long.
The author is confused, there is hardly any new money (ie credit what the lemmings use for money) coming online. Please wake me up when these trillions show up.
http://www.federalreserve.gov/releases/z1/current/accessible/l1.htm
"Just wait until the trillions in new money created in 2013"
During one quarter in 2007, new credit was coming on at a 4.7T annualized rate, now we are about 1.2T. In 2009, the system went negative.
http://2.bp.blogspot.com/--RkLZLRlRi8/UGAGOUg7fNI/AAAAAAAAABs/HHgMlfUYP2...
The system is actually missing about $20T. The system should have been north of $80T if it were acting as it should to substain itself by the end of 2013, unfortunately or fortunately, that ain't going to happen. Learn to swim.
Eventually, all the tricks will run their course, the system which requires exponential growth will no longer be supplied the required growth and will top over once again, the amount power needed to sustain the unsustainable will continue to grow. The system will then start to collapse, at some point, liquidation of the unfunded liabilities on a massive scale.
FEDerales Selling All The Paper, And The ASIANS/Chinee Buying Up All The Available Physical (i.e. The Non-Tungsten)...
Germany HELLLOOO??? How much of your GOLD Is Already In China ???
The bastards who are fucking around with the gold price are basically giving it away for free, or nearly free.
This is wealth that past generations have fought and died for.
Let's hope that they hang for it when the time comes eh...
Gold to $2000? But, but...
"1100 maybe - but 1500 or 2000 is utter nonsense..."
How does anyone know that that isn't the way Germany wants it? How does anyone know that there aren't any big German customers with an agent in some South East Asian port?
We as in the WEST are trying to do the short tem make the fiat look good by holding down the price of gold and silver.....but the Chinese and Indians keep buying...they think long term...and guess what...they will have the strong fiat in the end..the one everyone wants to use.....so who won...the Yuan won...one
Actually... I WONDER IF CHINA ALSO HAS TO WAIT 7 YEARS FOR DELIVERY!!!!
While the author may indeed be a tad confused about the motivations which will drive gold demand higher in China(they aren't truly as reactive to inflationary scares - because they've never lost the useful habit of distrusting all governmental promises, and therefore the preference for hoarding physical!) the commentator has definitely lost the thread...
there are no 'missing trillions'...only now are the results of the last forty years(two generations or so)showing up in West and East - one went the way of post industrial 'leisure society' consumerism, the other worked skimped and saved, building stuff we used to make for ourselves.
Think of it like a river...takes a long time for something to flow all the way from the headwaters to the ocean...all those tool n die jobs what floated east a couple of decades ago...the money has finally surfaced in the form of a newly wealthy generation of Chinese who are spending what their parents slaved for. And buying gold is a barbaric tradition which simply never went out of style there!
Take a trip East, and see for yourself...the gold China is now soaking up is the tangible evidence of a shift of gravity every bit as profound as when the big noses finally overcame the Middle Kingdoms' refusal to buy what the barbarians from the West had to offer. What the west did through opium and cheap trinkets the East is doing through cheap trinkets and complacent hopium, which a new generation of i-gadgeted debt slave coolies will soon nuff find fail to ameliorate the hunger pangs for the freeborn life they have traded away,
And whining about it isn't going to help much. The complaint department is closed.
at some point, liquidation of the unfunded liabilities on a massive scale.
Dude, that realy puts a harsh on my mello.
Somebody was shorting hard into this morning's pop.
Check out the pullback on the live chart: http://www.pmbull.com/gold-price/
The weekly chart doesn't give me much excitement either.
Oops, Silver just went negative too: http://www.pmbull.com/silver-price/
chinamen getting all of teh goledz oh noze
That will be very interesting to watch clash of Chosen Ones and Chinese shortly, they're so similar and absolutly different at the same time.
Maybe Germany should take a hint from China and just buy some gold....at least they'd have some.
I'm sure this is happening. Germans don't fool around.
...which is laughable anyone would be buying gold at these price, considering it only costs $5 to get it out of the ground. /sarc
and despite this, presented with no further comment....
http://www.kitco.com/charts/livesilver.html
except, FUCK YOU BITCH ASS BERNANKE AND ALL YOU BANKERS........
the story of the young bullshit and the old bullshit
Making their trade surplus look way smaller too. How convenient.
Yeah, how dare they manipulate their data.......
/s
What a bunch of traditional barbarians.
Welcome to the new normal reserve currency, the Reminbi.
Might have to stack a few Pandas here and there.
Pandas were my first silver acquisition back in 2008.
and like pandas, gold will soon be an endangered species
We need to have a table of independently verified gold holdings, US constantly at 8,133 makes the table completely useless.
Not "completely useless"...late in 2014, China will announce their new public gold holdings in the amount of....8,134 tons and also announce that their currency is now backed by that gold, and that only their currency will be accepted in trade.
ha! and right on these news the price get pushed down some more... just so that they can buy even more of it!
this will go on and on, until there's nothing left on this side of the world.
China will tip over and capsize if they continue on this course.
If that happens don't blame Hank Johnson.
http://www.youtube.com/watch?v=cesSRfXqS1Q
Bro-
Dats rayciss of you to be dissin lik dat.
They must be up to something.
"How much is that golden dumpling?"
Won Ton.
Here all week, tip the waitress, try the steak.
The Chinese know how to BTFD!
And the US government will somehow find a way to get involved, on the side of Japan, with the Senkaku islands me thinks. Aren't the Chinese heavily involved with Al Qeada?
Sun fucking Tzu.
Eat fucking hot chinese shit Bernanke. you really fucked up you fucking asshole. fuck you.
had a boating accident recently? You seem a bit uptight.
+100 for profanity. It just has a way of strengthening a point.
hard consonants for hard realities
+1 on Sun Tzu. The Chinese have found a non-violent way to take away from America and "the west" everything it has been using as "power" for the last 200 years. They will beat the west by making the paper fiat BS we circulate worthless on the world market. They will make themselves the reserve currency of the world, and the de-facto super-duper power...without firing a single shot. And the beauty of it is, that the Chinese are doing this while the price of gold is being suppressed by the west in order to keep the west's game going. The Chinese know that the more they buy, the more the west has to sell/short. Thus each ounce of gold China takes delivery of strengthens China and weakens the west. The banksters are drowning in a sea of paper and the Chinese are sitting on top of their heads, piling on ton upon ton of gold to drown those sorry fucks.
It has to break out at some point. At some point they will remove their curtain as a backer of honest money, and ours as counterfieters of paper fraud. China won't be buying our debt issued in dollars any more. Then OPEC will stop selling oil in dollars. The US will get desperate and probably launch a war...China will sit back and keep hoarding wealth while the west kills itself and rots away...sad to think about, but seems like the way it's headed.
well done man...
nice and tight advancement of a very credulous postulate...
clever and patient strategy by the chinese. they are using the greed of the west against themselves.
I'd like to see an official tungsten holdings chart.
How much of that Chinese buying spree is PHYSICAL?
I think Certified Assayer training is a good carreer opportunity.
it could be a giant paper dragon, if everyone believes China has “X” amount of gold (like all that fine metal in Ft. Knox) in order to launch a new reserve currency then the entire paper game continues, who is to say they actually have to have it?
‘Full Faith and Credit’ becomes ‘Fur Faife and Cledit’ ina da Chyaknees Yoowon
No one is able to verify anything we are being told.
I want to know how much China has been mining, because they surpassed South Africa as the largest gold producer and none of it has left the country.
if you believe any of the official numbers from China you're dumber than the last guy
Yeah, believing any of the official numbers from China is like believing any of the official numbers from Amerika.
The only thing that REALLY matters is how many bitcoins they're mining & importing... All the rest is nonsense...
I think China gets most of it's Bitcoins from dore bars.
Stop trying to speculate on something that you clearly have ZERO technological understanding of... :-)
~~~
They come from WONKA wrappers... NOT Dore bars...
gold vs bitcoin. i want to see a chart. does anybody have it?
How can you tell they're not TUNGSTEN filled Bitcoins? Eh?
Last news I remember was about 350T/year, but who knows.
Their production (retained) and known purchases suggest that their holdings are growing at +/- 1000T a year. But we still don't know what they're buying from Africa.
IF WE DON'T CLOSE ABOVE $1,677 TODAY, BE READY FOR THE EXITS, BITCHEZ. BECAUSE THE POWERS THAT BE ARE VERY, VERY ADAMANT THAT THE TREND SHALL BE BROKEN. IT CANNOT BE LET ABOVE $1,685 AND IF TODAY I AM RIGHT, IT WILL MARK THE BEGINNING OF A JOURNEY TO THE $1,400/OZ ZONE....
I have to admit that if you hadn't used All Caps, I may have missed your spot-on point all together..... /sarc
You guys are insane. For the record, I am all in gold. ALL! I was just trying to warn you. But you are all blind. You really believe we have the upper hand here, and we clearly don't. People love stawks, really bot into the recovery story and if they didnt, dont worry: Banksters and pension fund managers have all their sheeple savings to invest in safe haven treasuries.
Why don't you help out those that don't speak spanish and tell them what confundido means.
Send it all the way to $0 please...
Yeah really. At $1400 I'm selling extra organs.
It just NEVER crossed my mind until you posted just now that PM's may be an important part of a hedging plan for when fiat dies. Never crossed my mind... NEVER, I say!
Si, muy confundido.
Oro, putas!
Putaz!
Who needs a warning, confused one? The lower the price, the better for stacking. That's a BONUS, not something to be warned about. Your moniker is well suited to your commentary.
See you tomorrow sparky.
I recently talked to a ex-Goldman programmer and he stated, he wrote Algo's to keep the price od PM's in check.
He now wants to join JP for a programming job. This is not sarc, this is a real situation.
He should hand us the code, let us tweak it just a tiiiiiny bit and then let him implement it again.
Please baby jesus, let me see 1400 again...
Sweet! Just in time to rent a truck to back up, with; boat attached, for future 'accident'.
Danger, danger Will Rogers. The panic of the capital letters is combined with the cryptic nsature of the message... a mystery wrapped in a riddle and enveloped in the cloud of enigma...
how do piss-ons that post on blogs always purport to personally know what TPTB are thinking? bring on 1400....BTFD
Same old posts I use to read when I was paying $1200 and it was to drop to $800. I'm still waiting and ready to buy.
The chickenshit fuckheads running the paper market don't have the balls to run th price to $1400. Of oourse they could if they wanted to, they can manufacture unlimited paper gold. But all they're willing to do now is fuck with it between 1640 and 1680.
In any case, if they run the price to 1400, then I refer you to yesterday's article on price controls in Argentina - the effect will be 'yes, the price is fantastic, only $1400/oz - you can't get any ACTUAL metal for that price, but if you could, it would be a fantastic deal'. Bye bye paper market, bye bye paper gold traders.
Since confundido means confused in Spanish you have picked a correct moniker.
You may try Jodido next time
Suerte
Of course it's going down, it's a triangle figure. It'll just take a few days to hit the $1650 support, then bounce up again. Now that will be the perfect time to buy as much physical as you can.
We just gotta hang on till this phase ends. And end it will sending gold, silver and miners much higher. Or would you rather buy PCLN or AMZN. What a farce this all is. Growth through printing. Great future for our kids.
smart money or...
THE CARTEL JUST MADE SURE IT WONT STAY ABOVE $1,680/OZ.
No tickey, no gold. Extra gold here and there.
Dumb Chi-Coms. They should just buy moar stawks.
Risk back on, bitchez! S&P 1600 here we come!
Speaking of price drop, nice vertical reversal of the pre-market run-up. Nothing to see here, though, nothing unusual about the price moves in the gold market, just open free market price discovery.
the wedge is pushing up the market ass-which way will it go?
only clue is 85b/month digital creation to suggest the outcome.
otherwise i don't know for sure, but look me up a couple of years from now...
I'd like to know whether the current hectic price suppression is being done intentionally in favor of China or it's just a necessary side-effect. I guess the former is true.
The "price suppression conspiracy" is the typical one caused by massive amounts of unsupported paper gold and massive amounts of fraudulent (tungsten) gold creating uncertainty in the market. Who wants to pay more for nothing? Big players are buying paper gold OTFD and then selling on the uptick as fast as they can, making money from the froth, but the quick turnaround dump keeps the price down. The Chinese are suckers. If they are buying physical, they don't have anything until they take delivery. If they take delivery they don't have anything until they have assayed, and if they buy paper, they're fucked, plain and simple.
"If they take delivery they don't have anything until they have assayed"
Situtation Report:
Assays are for brokers and bankers. Period. When you have a gun to the assayers head. Ironicly you get exactly what the broker/bankers want to hear. Thats real world. If you think you have nothing until some holy priest does his fire test to prove he's king midas illegit nephew, stay commenting in the paper world and out of the physical one as your ignorant to how real world gold buying soveriegns operate.
55-65% (depending on how many frenchmen are involved) of a mines ACTUAL production never gets assayed never hits the books, it flies out on c130's final destination Hong Kong this is the real gold market as of 2008
End Report
As Jim Sinclair said years ago: the Cartel cannot stand against a sovereign buyer -- especially not one with the potential demand, and USD reserves, of China. China gold as a percent of reserves: 1.7% - the key number in that table.
Mr B, agree.
<deleted>
So realistically, China is now the #1 owner of gold in the world...Because everyone knows the US has all the gold it claims to have at Fort Knox.
"sarc"
China is the number one owner of a lot of shit
We are about to learn that old lesson that owning an army is not the same thing.
Are they buying physical gold with printed money ? if so, why aren't we ? Or do we not print !
On price drop? Does it really matter if it's $1800 or $1600 when paid for with Bernanketissue?
fleecing of the world underway, one once at a time...
drip, drip
winner is...
...the Barons Rothchild.
So it took the Chinese one year to buy $44 billion in gold. It only takes the Feds 2 weeks to print $44 billion to buy bonds. No rocket science required here.
The Story buried on Page 16 of NYT says China spends even much more money importing food.
But Bubble Bernanke and the Fed have the printing press.
China is silently dumping US dollars for assets. When the US dollar collapses china will be ready to take the lead.
The US is becoming the begger nation.
Xin Nian Kuai Le bitchez!
...and yet no-one sees that it must be the Chinese manipulating the prices of the Precious Metals, via JPM or whoever. If you accept that the USA / West is now the old decaying order and China / emerging economies are probably the new order, who has the most to gain through manipulation? A country / the West where most people don't have a clue as to real value, or a country / BRICs where they absolutely know the real value of the Precious Metals?
I TOLD YOU SO. THE ALGOS ARE PUNCTUAL: AT 10:30AM, THE FINISHING HIT OF THEIR SWORD. SEE YOU THERE...
The scam of the Chinese is not only the biggest scam of world history (running close tie with Social Security), and one to be studied by future economist students over the guttering campfires of the teaching cave, it is the most obvious. Even the Chinese can see it- their only hope is to be the last one standing in a drinking contest involving 190 proof moonshine, made from a truck radiator still and a recipie involving nothing but sugar, Fleishmanns yeast, and creek water. The shiner- a guy named Ben. When the distilleries are run by people without Gaelic names, you can be assured you're in trouble.
But they (I mean the Chinese) aren't really in control of the collapse. That is in the hands of the moonshiners, er, the banking cartel. If the Chinese are collecting gold, it is only so the Rothchilds don't have to bend over and pick it up themselves.When they are ordered to hand it over, they will.
China has no oil, and not enough food. They have destroyed their fresh water, forests, and air with rampant pollution. Who is going to buy their exports when money expansion is replaced with money contraction, at the appointed time?
When the gobal dominators reveal themslevs, they will NOT be Chinese, I promise you that.
The Chinese will do with their gold what they are told to do, which is to trade it at robbery rates for needed energy and food. So will you, when the day comes. Gold, real, physical gold, is the biggest and oldest scam of all. You can have the gold only when you have been deprived of an independent means of getting food and fuel. You can only have food and fuel when you have been deprived of the gold.
SUCKAHHHHHS!!!!
Ok, if the americans can claim to have 8000 tonnes without having to prove it then I'll play the same game.
I have 10,000 tonnes. You're not allowed to see it. But its there, trust me.
You don't have drones!
yes i do. But you can't see them either. They're, erm, out at the drone wash.
Short Copper....
Feb 5, 2013, 6:33am EST The penny a thing of the past? In Canada, it will be Enlarge ImageThere’s been plenty of debate on whether the U.S. should do away its penny, a coin that costs more than its worth to produce. But in Canada, officials have taken the debate one step further and have started phasing out the penny.
On Monday, the Royal Canadian Mint ended distributing pennies to financial institution and the government began suggesting to store owners that they start rounding prices to the nearest nickel.
"So long, gay boys!"
The story might actually be as follows: that only Russia and China as sovereign buyers are able to diversify out of their U.S. dollar foreign exchange reserves.
Secondly, that such substantial mounts are being drawn solely from mine supply as there are no central bank sales leaves an open question whether those numbers aren't just hopelessly and patently absurd figures based solely on gross exaggeration.
CBs don't sell. They lend it to private banks, which then sell them.
OT,
This guy has full spectrum understanding,,
http://www.youtube.com/watch?v=XHbr0TRgcdY
Considering China's importation of gold and other country's importation of gold over the last few years, the FED will only be able to suppress the gold price for just as long as it takes for there to be a worldwide epiphany as to their complete and total manipulation of the PM's market. This will be similar to the LIBOR SCANDAL of recent times, however, who gets the blame will obviously not be the FED, but their surrogates in the banking industry IMO.
These other countries are going to keep aquiring PMs until they can ante the Fed Reserve off.
BTW, there is NO WAY the US has 8.1 tonnes of gold on hand.
Tungsten, on the other hand.......
I'm willing to bet that the US definitely has 8.1 tonnes of gold on hand. I suspect that the big issue is that there are many parties who think they own that gold. Typical fucking bankers - 'as long as everybody doesn't want it at the same time, it's not a problem, and if they do all want it at the same time, we just fold up and pack it in, so it's not OUR problem'.
Definitely!, I´ve been saying this for a long long time...
Gold lease,Gold swaps (thats a good one) ,Gold loans and the USA ESF .
This is what the Fed and the Banksters keep the price of Gold supressesd with.
I am sure the other G-2o cunt trees have there own PM's price suppression funds to with some cute little acrynom.
Ps....The BIS is involved in the game too.
Ha Ha Germany... Ya see that!? That's where your gold went, bitchez. 7 years will pass quickly... LOL
Suckers
$1,400 or less? Please let it happen! I switched from gold to silver back in 2009, but I certainly would not mind picking up a little more shiny yellow stuff at that price. Quit rooting for the ship to sink people, the longer the game goes on and the lower the price goes down the more physical we can acquire before the house of cards finally tumbles. The fundementals are all there, we know its just a question of time, take advantage of the opportunity to do the same as the Chinese. I for one get really scared everytime the price goes up significantly, wondering if this is finally it? Its obviously for a different reason, but I almost feel empathy for the ¨shorts¨ - almost ;) Stability is nice, but the oportunity to increase future wealth is nicer. Relax and enjoy the show...
Never mind how much gold the Chinese government has bought, how much has the Chinese people bought?
I also think the Chinese Government has a bank of computer jockeys that can do the same thing our HFT´s can do...that is overwhelm the system to play with the prices....don´t put it past them that they don´t cheat.....or won´t cheat
Getting over $250 in silver may be difficult also.
I think the Deutschmark should be the world's reserve currency.
Also, bought my second ounce of gold today.
I also realize that it won't be nearly enough to protect my wealth.
"if you believe any of the official numbers from China you're dumber than the last guy"
Correct! I think China, that is the Chinese, hold MORE gold than what the numbers suggest...
Bernanke is our modern Doctor Frankenstein : he has created a monster that'll soond estroy its creator...
Dont get caught holding the bag
Yeah, sell all your paper before it's too late.
yeah,
i agree. very aggressive assumption. the hofjuden got it first.