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China Imports Record Amount Of Gold In December On Price Drop

Tyler Durden's picture




 

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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Tue, 02/05/2013 - 10:50 | 3216147 GetZeeGold
GetZeeGold's picture

 

 

The story of the young bull and the old bull.

Tue, 02/05/2013 - 10:55 | 3216173 The Juggernaut
The Juggernaut's picture

The Fed Reserve (and its agents) are shorting and China is long.

Tue, 02/05/2013 - 11:21 | 3216234 Landotfree
Landotfree's picture

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.    


Tue, 02/05/2013 - 11:26 | 3216266 BaBaBouy
BaBaBouy's picture

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 ???

Tue, 02/05/2013 - 11:29 | 3216282 Harlequin001
Harlequin001's picture

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...

Tue, 02/05/2013 - 12:16 | 3216448 Mister Ponzi
Mister Ponzi's picture

Gold to $2000? But, but...

"1100 maybe - but 1500 or 2000 is utter nonsense..."

Tue, 02/05/2013 - 12:47 | 3216572 ParkAveFlasher
ParkAveFlasher's picture

Germany HELLLOOO??? How much of your GOLD Is Already In China ???

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?

 

Tue, 02/05/2013 - 13:39 | 3216792 youngman
youngman's picture

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

Tue, 02/05/2013 - 12:01 | 3216376 Sudden Debt
Sudden Debt's picture

Actually... I WONDER IF CHINA ALSO HAS TO WAIT 7 YEARS FOR DELIVERY!!!!

Tue, 02/05/2013 - 12:42 | 3216546 JOYFUL
JOYFUL's picture

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.

Tue, 02/05/2013 - 11:43 | 3216320 forwardho
forwardho's picture

 

at some point, liquidation of the unfunded liabilities on a massive scale.    

Dude, that realy puts a harsh on my mello.


Tue, 02/05/2013 - 11:41 | 3216315 AllThatGlitters
AllThatGlitters's picture

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.

Tue, 02/05/2013 - 11:47 | 3216334 AllThatGlitters
AllThatGlitters's picture

Oops, Silver just went negative too:  http://www.pmbull.com/silver-price/

Tue, 02/05/2013 - 10:55 | 3216174 trav777
trav777's picture

chinamen getting all of teh goledz oh noze

Tue, 02/05/2013 - 11:04 | 3216217 Eally Ucked
Eally Ucked's picture

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.

Tue, 02/05/2013 - 11:16 | 3216245 GetZeeGold
GetZeeGold's picture

 

 

Maybe Germany should take a hint from China and just buy some gold....at least they'd have some.

Tue, 02/05/2013 - 13:07 | 3216654 ParkAveFlasher
ParkAveFlasher's picture

I'm sure this is happening.  Germans don't fool around.

Tue, 02/05/2013 - 11:09 | 3216227 zapdude
zapdude's picture

...which is laughable anyone would be buying gold at these price, considering it only costs $5 to get it out of the ground.  /sarc

Tue, 02/05/2013 - 11:26 | 3216273 Kaiser Sousa
Kaiser Sousa's picture

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........

Tue, 02/05/2013 - 12:07 | 3216402 DaveyJones
DaveyJones's picture

the story of the young bullshit and the old bullshit

Tue, 02/05/2013 - 10:50 | 3216149 Glass Seagull
Glass Seagull's picture

Making their trade surplus look way smaller too. How convenient.

Tue, 02/05/2013 - 10:58 | 3216188 Shell Game
Shell Game's picture

Yeah, how dare they manipulate their data.......

 

/s

Tue, 02/05/2013 - 11:00 | 3216201 Dr. Richard Head
Dr. Richard Head's picture

What a bunch of traditional barbarians.

Tue, 02/05/2013 - 11:20 | 3216255 espirit
espirit's picture

Welcome to the new normal reserve currency, the Reminbi.

Might have to stack a few Pandas here and there.

Tue, 02/05/2013 - 11:28 | 3216279 Dr. Richard Head
Dr. Richard Head's picture

Pandas were my first silver acquisition back in 2008. 

Tue, 02/05/2013 - 12:08 | 3216410 DaveyJones
DaveyJones's picture

and like pandas, gold will soon be an endangered species

Tue, 02/05/2013 - 10:51 | 3216152 uno
uno's picture

We need to have a table of independently verified gold holdings, US constantly at 8,133 makes the table completely useless.

Tue, 02/05/2013 - 12:06 | 3216400 pupton
pupton's picture

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. 

Tue, 02/05/2013 - 10:51 | 3216154 achmachat
achmachat's picture

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.

Tue, 02/05/2013 - 10:59 | 3216191 GetZeeGold
GetZeeGold's picture

 

 

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

Tue, 02/05/2013 - 11:22 | 3216261 Midas
Midas's picture

Bro-

 

Dats rayciss of you to be dissin lik dat.

Tue, 02/05/2013 - 10:53 | 3216165 CheapBastard
CheapBastard's picture

They must be up to something.

Tue, 02/05/2013 - 10:54 | 3216166 Benedict Farse
Benedict Farse's picture

"How much is that golden dumpling?"

Won Ton.

Here all week, tip the waitress, try the steak.

Tue, 02/05/2013 - 10:53 | 3216167 waterwitch
waterwitch's picture

The Chinese know how  to BTFD!

Tue, 02/05/2013 - 11:02 | 3216212 Dr. Richard Head
Dr. Richard Head's picture

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?

Tue, 02/05/2013 - 10:54 | 3216168 LongSoupLine
LongSoupLine's picture

Sun fucking Tzu.

 

Eat fucking hot chinese shit Bernanke.  you really fucked up you fucking asshole.  fuck you.

Tue, 02/05/2013 - 10:56 | 3216181 _ConanTheLibert...
_ConanTheLibertarian_'s picture

had a boating accident recently? You seem a bit uptight.

Tue, 02/05/2013 - 11:41 | 3216313 Meat Hammer
Meat Hammer's picture

+100 for profanity.  It just has a way of strengthening a point.

Tue, 02/05/2013 - 12:15 | 3216419 DaveyJones
DaveyJones's picture

hard consonants for hard realities

Tue, 02/05/2013 - 12:16 | 3216443 pupton
pupton's picture

+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.

Tue, 02/05/2013 - 13:23 | 3216726 Kaiser Sousa
Kaiser Sousa's picture

well done man...

nice and tight advancement of a very credulous postulate...

Tue, 02/05/2013 - 15:36 | 3217200 e-recep
e-recep's picture

clever and patient strategy by the chinese. they are using the greed of the west against themselves.

Tue, 02/05/2013 - 10:54 | 3216170 _ConanTheLibert...
_ConanTheLibertarian_'s picture

I'd like to see an official tungsten holdings chart.

Tue, 02/05/2013 - 11:08 | 3216224 mess nonster
mess nonster's picture

How much of that Chinese buying spree is PHYSICAL?

I think Certified Assayer training is a good carreer opportunity.

Tue, 02/05/2013 - 14:04 | 3216880 ali-ali-al-qomfri
ali-ali-al-qomfri's picture

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.

Tue, 02/05/2013 - 10:54 | 3216171 Lost Wages
Lost Wages's picture

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.

Tue, 02/05/2013 - 10:56 | 3216184 trav777
trav777's picture

if you believe any of the official numbers from China you're dumber than the last guy

Tue, 02/05/2013 - 11:03 | 3216214 MassDecep
MassDecep's picture

Yeah, believing any of the official numbers from China is like believing any of the official numbers from Amerika.

Tue, 02/05/2013 - 11:14 | 3216244 francis_sawyer
francis_sawyer's picture

The only thing that REALLY matters is how many bitcoins they're mining & importing... All the rest is nonsense...

Tue, 02/05/2013 - 11:19 | 3216251 GetZeeGold
GetZeeGold's picture

 

 

I think China gets most of it's Bitcoins from dore bars.

Tue, 02/05/2013 - 11:35 | 3216292 francis_sawyer
francis_sawyer's picture

Stop trying to speculate on something that you clearly have ZERO technological understanding of... :-)

~~~

They come from WONKA wrappers... NOT Dore bars...

Tue, 02/05/2013 - 15:39 | 3217227 e-recep
e-recep's picture

gold vs bitcoin. i want to see a chart. does anybody have it?

Tue, 02/05/2013 - 19:44 | 3218177 auric1234
auric1234's picture

How can you tell they're not TUNGSTEN filled Bitcoins? Eh?

 

Tue, 02/05/2013 - 10:58 | 3216189 Eally Ucked
Eally Ucked's picture

Last news I remember was about 350T/year, but who knows.

Tue, 02/05/2013 - 10:55 | 3216172 Eally Ucked
Eally Ucked's picture

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.

Tue, 02/05/2013 - 10:55 | 3216177 Confundido
Confundido's picture

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....

Tue, 02/05/2013 - 11:01 | 3216207 Shell Game
Shell Game's picture

I have to admit that if you hadn't used All Caps, I may have missed your spot-on point all together.....   /sarc

 

Tue, 02/05/2013 - 11:18 | 3216249 Confundido
Confundido's picture

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.

Tue, 02/05/2013 - 11:24 | 3216267 Midas
Midas's picture

Why don't you help out those that don't speak spanish and tell them what confundido means.

Tue, 02/05/2013 - 11:27 | 3216276 fuu
fuu's picture

Send it all the way to $0 please...

Tue, 02/05/2013 - 13:11 | 3216673 ParkAveFlasher
ParkAveFlasher's picture

Yeah really.  At $1400 I'm selling extra organs.

Tue, 02/05/2013 - 11:30 | 3216284 Shell Game
Shell Game's picture

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! 

Tue, 02/05/2013 - 12:27 | 3216486 Meat Hammer
Meat Hammer's picture

Si, muy confundido.

Oro, putas!

Tue, 02/05/2013 - 12:56 | 3216604 DoChenRollingBearing
DoChenRollingBearing's picture

Putaz!

Tue, 02/05/2013 - 13:17 | 3216702 Au Shucks
Au Shucks's picture

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.

Tue, 02/05/2013 - 11:02 | 3216209 GetZeeGold
GetZeeGold's picture

 

 

See you tomorrow sparky.

Tue, 02/05/2013 - 11:06 | 3216221 MassDecep
MassDecep's picture

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.

Tue, 02/05/2013 - 14:10 | 3216897 toothpicker
toothpicker's picture

He should hand us the code, let us tweak it just a tiiiiiny bit and then let him implement it again. 

Tue, 02/05/2013 - 11:09 | 3216231 Alpha Monkey
Alpha Monkey's picture

Please baby jesus, let me see 1400 again...

Tue, 02/05/2013 - 11:11 | 3216235 edifice
edifice's picture

Sweet! Just in time to rent a truck to back up, with; boat attached, for future 'accident'.

Tue, 02/05/2013 - 11:13 | 3216238 mess nonster
mess nonster's picture

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...

Tue, 02/05/2013 - 11:13 | 3216239 unrulian
unrulian's picture

how do piss-ons that post on blogs always purport to personally know what TPTB are thinking? bring on 1400....BTFD

Tue, 02/05/2013 - 11:54 | 3216358 Silverhog
Silverhog's picture

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. 

Tue, 02/05/2013 - 12:22 | 3216467 Al Huxley
Al Huxley's picture

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.

Tue, 02/05/2013 - 13:02 | 3216631 rodocostarica
rodocostarica's picture

Since confundido means confused in Spanish you have picked a correct moniker.

 

You may try Jodido next time

 

Suerte

 

 

Tue, 02/05/2013 - 19:47 | 3218186 auric1234
auric1234's picture

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.

 

Tue, 02/05/2013 - 10:55 | 3216178 monopoly
monopoly's picture

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.

Tue, 02/05/2013 - 10:55 | 3216180 new game
new game's picture

smart money or...

Tue, 02/05/2013 - 10:56 | 3216182 Confundido
Confundido's picture

THE CARTEL JUST MADE SURE IT WONT STAY ABOVE $1,680/OZ.

Tue, 02/05/2013 - 10:57 | 3216186 Whiner
Whiner's picture

No tickey, no gold. Extra gold here and there.

Tue, 02/05/2013 - 10:57 | 3216187 Tsar Pointless
Tsar Pointless's picture

Dumb Chi-Coms. They should just buy moar stawks.

Risk back on, bitchez! S&P 1600 here we come!

Tue, 02/05/2013 - 10:58 | 3216192 Al Huxley
Al Huxley's picture

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.

Tue, 02/05/2013 - 10:58 | 3216193 new game
new game's picture

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...

Tue, 02/05/2013 - 11:02 | 3216196 Anasteus
Anasteus's picture

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.

Tue, 02/05/2013 - 11:18 | 3216250 mess nonster
mess nonster's picture

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.

Tue, 02/05/2013 - 15:55 | 3217249 GoldMInerJoe
GoldMInerJoe's picture

"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

Tue, 02/05/2013 - 11:00 | 3216198 Bastiat
Bastiat's picture

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.

Tue, 02/05/2013 - 11:26 | 3216263 forwardho
forwardho's picture

Mr B,  agree.

 

Tue, 02/05/2013 - 11:28 | 3216278 Bastiat
Bastiat's picture

<deleted>

Tue, 02/05/2013 - 11:00 | 3216199 SeverinSlade
SeverinSlade's picture

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.

Tue, 02/05/2013 - 11:35 | 3216294 SmallerGovNow2
SmallerGovNow2's picture

"sarc"

Tue, 02/05/2013 - 12:13 | 3216435 DaveyJones
DaveyJones's picture

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.

Tue, 02/05/2013 - 11:02 | 3216211 Habyarimana
Habyarimana's picture

Are they buying physical gold with printed money ? if so, why aren't we ? Or do we not print ! 

Tue, 02/05/2013 - 11:02 | 3216213 Magnum
Magnum's picture

On price drop?  Does it really matter if it's $1800 or $1600 when paid for with Bernanketissue?

Tue, 02/05/2013 - 11:06 | 3216222 new game
new game's picture

fleecing of the world underway, one once at a time...

drip, drip

winner is...

Tue, 02/05/2013 - 11:19 | 3216254 mess nonster
mess nonster's picture

...the Barons Rothchild.

Tue, 02/05/2013 - 11:08 | 3216225 Polar Bear is i...
Polar Bear is in the House's picture

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.

Tue, 02/05/2013 - 11:12 | 3216237 reader2010
reader2010's picture

The Story buried on Page 16 of NYT says China spends even much more money importing food.

Tue, 02/05/2013 - 11:22 | 3216260 yogibear
yogibear's picture

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.

Tue, 02/05/2013 - 11:28 | 3216280 Temporalist
Temporalist's picture

Xin Nian Kuai Le bitchez!

Tue, 02/05/2013 - 11:29 | 3216281 FunkyOldGeezer
FunkyOldGeezer's picture

...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?

Tue, 02/05/2013 - 11:31 | 3216286 Confundido
Confundido's picture

I TOLD YOU SO. THE ALGOS ARE PUNCTUAL: AT 10:30AM, THE FINISHING HIT OF THEIR SWORD. SEE YOU THERE...

Tue, 02/05/2013 - 11:36 | 3216298 mess nonster
mess nonster's picture

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!!!!

Tue, 02/05/2013 - 11:39 | 3216307 RealityCheque
RealityCheque's picture

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.

Tue, 02/05/2013 - 11:42 | 3216317 Confundido
Confundido's picture

You don't have drones!

Tue, 02/05/2013 - 11:55 | 3216361 RealityCheque
RealityCheque's picture

yes i do. But you can't see them either. They're, erm, out at the drone wash.

Tue, 02/05/2013 - 11:43 | 3216319 NEOSERF
NEOSERF's picture

Short Copper....

Feb 5, 2013, 6:33am EST The penny a thing of the past? In Canada, it will be Enlarge Image
Staff The Business Review

There’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.

 

Tue, 02/05/2013 - 11:47 | 3216335 Mad Mohel
Mad Mohel's picture

"So long, gay boys!"

Tue, 02/05/2013 - 11:53 | 3216356 FranSix
FranSix's picture

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.

Tue, 02/05/2013 - 19:54 | 3218206 auric1234
auric1234's picture

CBs don't sell. They lend it to private banks, which then sell them.

 

Tue, 02/05/2013 - 12:08 | 3216373 kill switch
kill switch's picture

OT,

 

This guy has full spectrum understanding,,

http://www.youtube.com/watch?v=XHbr0TRgcdY

Tue, 02/05/2013 - 12:01 | 3216378 goldenbuddha454
goldenbuddha454's picture

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.  

Tue, 02/05/2013 - 12:06 | 3216397 Shizzmoney
Shizzmoney's picture

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.......

Tue, 02/05/2013 - 12:15 | 3216439 Al Huxley
Al Huxley's picture

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'.

Tue, 02/05/2013 - 13:08 | 3216663 douglas
douglas's picture

Definitely!, I´ve been saying this for a long long time...

Tue, 02/05/2013 - 12:22 | 3216468 Bansters-in-my-...
Bansters-in-my- feces's picture

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.

Tue, 02/05/2013 - 12:26 | 3216484 Haole
Haole's picture

Ha Ha Germany... Ya see that!?  That's where your gold went, bitchez.  7 years will pass quickly... LOL

Suckers

Tue, 02/05/2013 - 12:57 | 3216607 batz
batz's picture
China is converting their western paper reserves into gold and positioning themselves to launch a gold-backed reserve currency into emerging markets in Africa and South America. It may take a decade. They don't need profit. They want political power. Once they are ensconced it will be impossible to remove them without some kind of ethnic nationalism movement against them. They will lend out the new currency to sympathetic southern regimes at competitive rates, and without all that western human rights jive.  Now, how to get short the white round eyed devils... 
Tue, 02/05/2013 - 13:01 | 3216625 douglas
douglas's picture

$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...

Tue, 02/05/2013 - 13:11 | 3216676 poldark
poldark's picture

Never mind how much gold the Chinese government has bought, how much has the Chinese people bought?

Tue, 02/05/2013 - 13:48 | 3216830 youngman
youngman's picture

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

Tue, 02/05/2013 - 14:07 | 3216885 Quinvarius
Quinvarius's picture

Getting over $250 in silver may be difficult also.

Tue, 02/05/2013 - 17:23 | 3217649 W74
W74's picture

I think the Deutschmark should be the world's reserve currency.

Tue, 02/05/2013 - 17:28 | 3217675 W74
W74's picture

Also, bought my second ounce of gold today.

I also realize that it won't be nearly enough to protect my wealth.

Tue, 02/05/2013 - 17:30 | 3217687 Volaille de Bresse
Volaille de Bresse's picture

"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...

Tue, 02/05/2013 - 18:52 | 3217978 401-Kulak
401-Kulak's picture

Dont get caught holding the bag

Tue, 02/05/2013 - 19:59 | 3218216 auric1234
auric1234's picture

Yeah, sell all your paper before it's too late.

 

Wed, 02/06/2013 - 10:47 | 3219852 Pseudo Anonym
Pseudo Anonym's picture

yeah,

deposited in G-Pap or Venizelos' private HSBC safe in Geneva yet: a very aggressive assumption).

i agree.  very aggressive assumption. the hofjuden got it first.

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