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Gold Buying Frenzy Continues: China, Japan, And Australia Scramble For Physical
We noted here that the plunge in the paper price of gold (and silver) had prompted considerable renewed demand for physical and now it seems the scramble among the "more stable investor base" is increasing. The shake out of ETFs and futures has left the Australian mint short of deliverables and Japanese and Chinese gold retailers seeing a "frenzied" surge in demand. The customers are not just the 'rich' or 'elderly'; in China "they tend to wear water shoes and come directly from the market...;" in Australia, "the volume of business... is way in excess of double what we did last week,... there’s been people running through the gate," and Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal. The panic selling by a weaker 'imminent inflation-based' investor base has sparked physical shortages - "there’s been significant sales made as people see this as great value." It seems our previous discussions of a rotation from paper to physical were correct and this physical demand will eventually leak back into the paper markets.
Australia (via The Age):
Gold sales from Perth Mint, which refines nearly all of the nation’s bullion, have surged after prices plunged, adding to signs that the metal’s slump to a two-year low is spurring increased demand.
“The volume of business that we’re putting through is way in excess of double what we did last week,” Treasurer Nigel Moffatt said, without giving precise figures. “There’s been people running through the gate.”
...
“There’s been significant sales made as people see this as great value,” Mr Moffatt said. “Gold owners are very reactive to significant market movements.”
...
The Perth Mint’s sales of gold coins climbed 49 per cent to 97,541 ounces in the three months ended March 31 from a year earlier
China (via China News):
Beijing gold store two hours to sell 20,000 grams of gold bullion trading volume of nearly 200 million
and (via YCWB):
People have to rush to buy gold, ... gold bullion out of stock yesterday, investors yesterday to spend as much as 600 million yuan to buy 20 kilograms of gold bars
The mad pursuit gold insufficiency is not just a game for the rich. Yesterday, the Yangcheng Evening News reporter learned from the East flowers to Bay store, many growers, pork traffickers, fishmonger recently put down his job went straight to the mall to buy gold.
Japan (via Reuters):
Some Japanese also harbor fears that the expansionary monetary and fiscal policies dubbed "Abenomics", coupled with a national debt more than twice as large as annual economic output, could trigger a crisis down the line.
Skeptics about the radical attempt to reflate the economy -- or those simply worried that a slide in the yen that began in anticipation of Abe's election victory last December will continue unabated -- are still buying gold, dealers say.
"Investors in gold are convinced that Japan's fiscal position will get worse," said Wakako Harada, general manager of Japan's top bullion house, Tanaka Kikinzoku Kogyo.
"What I see at our counter is that more people are getting worried about Japan. That's why we are seeing a lot of buying."
...
"In contrast this time, we are seeing interest to buy on dips to take exposures to gold,"
...
"Investors are using this opportunity to buy gold to diversify beyond bonds, stocks and the yen currency as Japan's fiscal situation could deteriorate."
(via The Age):
Japanese individual investors doubled gold purchases yesterday at Tokuriki Honten, the country’s second-largest retailer of the precious metal.
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All this "surge" can be destroyed with one sell order from a hedge fund or a central bank.
LOL. So they'll give them some paper to all the buyers and they'll go back home?
Bart Chilton on Bloomberg 10:00. Might be interesting.
Central banks have a habit of signaling gold tops with buying sprees. And gold bottoms by selling frenzies.
Wow, sounds like a "Black Friday at Wal-Mart" kind of frenzy: http://www.youtube.com/results?search_query=Black+Friday+Walmart+riot
a Federal Reserve Note is nothing more than a Babylonian “Due Bill”.
The Federal Reserve Banks issue federal reserve “notes” to serve as legal tender. The issuance of these “notes” without being redeemable for anything of value allows the theft of the people’s labor.
This system of theft used by the Federal Reserve Banks to serve as legal tender in this country originated in ancient Babylon
Yeh central banks of the world hold tons of gold just because it is pretty to look at.
China is accumulating hundreds of tons a year just because it is pretty to look at.
The Fed dumped $20bn of paper gold in a day just for fun.
10 years ago how many USD were there for each ounce of gold. Today how many USD are for each ounce of gold? So..how many USD should you now ask for your ounce of gold?
Or the fact that trillions of digital USD come into existence each year bears no relationship to how many USD should be given for an ounce of Gold.
Market Watch, the MSM must have some participants here I reckon....pissed that Bernanks plan to trash gold has backfired.
You cannot buy coins for delivery at these prices.
From my dealers website which at first glance is selling gold coins at £900 per oz:
Hidden in the dealers blog page....
"We have been inundated with orders, which has quite frankly has taken us to a level where we are concerned of not being able to maintain our usual level of service that we pride ourselves on.
I will not allow this to happen.
We are already working on 7-8 days delivery schedule and my main concern is that, at the current daily increasing levels of business, we will end up soon with 3-4 weeks waiting times.
We need to fulfil our existing orders, send out the goods and then restart things.
For this reason we are not accepting any further orders at the current time."
They are not answering the phone. Not responding to emails.
Exactly. Show me anywhere you can find junk silver dollars under $25? Silver bullion anywhere *near* spot price of $25? It's simply not there.
You can tell me all day long gold & silver prices are going in the toilet. I just don't see it, and I don't think anyone else does, either.
The USSA definitely has a monopoly on sheep.
Tops will come when the big nations reduce the printing of fiat...ie accept crashing their economy and deflationary spiral.
no good outcomes.
Then the banks die with their balance sheets - oh wait.... didn't that happen in 2008?
A reminder how clueless Americans are about PMs, and how far from the top we are.
https://www.youtube.com/watch?v=ndshbH3qZ6Y
This might be the beginning of the end for PM ETFs. With Fractional PM Lending, they can make the ETF market whatever they want to. Physical sales will move beyond that.
I think that they overplayed their hand. They could have just kept it low, in a low trading range, but they felt the need to go for the kill. Overplayed.
Same story nationwide in Thailand
"Shops were jammed, particularly the large gold shops in Yaowarat. Managers asked customers to line up and take queue numbers. Similar scenes took place in Phuket, Phitsanulok, Nakhon Ratchasima and other provinces. Gold shops in some provinces reportedly closed up rather than face the jam. A Chanthaburi resident told the Bangkok Post her gold shop in the gem-dealing town was closed for the day."
http://www.bangkokpost.com/business/news/345752/gold-buyers-rush-in-as-p...
Any view on PHYS vs gld? px now a slight discount to NAV.
PHYS is trading now at -1.02% premium and PSLV at -0.17%. Same sh*t like GLD and SLV. It's not "PHYSical" at all...
Don't buy paper, buy the real thing.
If you buy paper and you're very lucky, maybe you get some profit. If you're not, you could be the bagholder.
Not worth the risk. Buy physical and sleep well at night.
It looks like they're not buying US equities - but what do you expect from barbarians, right Krugman? Thing about those barbarians is: there are so many of them.
I drove by a popular coin place in Calgary Canada, and place was packed! Whether it was sellers or buyers....who knows.....but I have never seen it that busy before.
Cheers
those were buyers
Motley Fool article..pretty good:
5 Reasons Why Gold Is a Screaming Buy Right Nowhttp://www.fool.com/investing/general/2013/04/16/5-reasons-why-gold-is-a...
The Motley Fool is bullish? Uh-oh, that's a sell signal.
+1 for applied inverse psychology
Thoughts fellow zhers on buying from us mint??having a hard time finding a good dealer....
If the price is good, why not?
well then
The United States Mint has sold out of 2012 American Buffalo Gold Proof Coins.
The 2013 American Buffalo Gold Proof Coins will go on sale at 12 noon on May 23, 2013.
If they ask you to wait until May 23rd, it means on the 23rd it'll be too late to get it cheap.
@3460660 Try Texas Precious Metals
thank you sir
I know some people will ask, "Should I sell my gold?" and I will say, "If the price of guns, air compressors, cars, etc., suddenly fell, would you sell them or buy more?"
gold's going to zero .... but you won't be able to find any anywhere for a quadrillion :-)
They will see it as a real value when the price hits $850/to. I am afraid that it is a sucker play.
Just received an advisory note and survey to complete from my UK ISA broker.
Lots of warnings about ETFs. Need to show that you are a professional or experienced trader (in the survey) to be allowed to continue to hold ETFs in an ISA.
This is all looking like a really concerted effort by TPTB to frighten the man in the street right out of precious metals or related funds.
I thought I'd never say this but are the sheeple finally starting to awaken?
Hopefully.....these interwebs is a motherfucker.
Not exactly. They don't wake up by themselves, they're being awakened.
If you can buy it then the banks don't want it. Think about the implications.
Ahhhh, Sooo, G.I.
I Buy Now!
"...this physical demand will eventually leak back into the paper markets..."
And how is THIS suposed to ever happen when they can just PRINT more paper gold any time they wish?
You're right it won't happen. There just has to be a disconnect between the price of physical and paper.
When they can't deliver the metal.
no that tptb have purchased all the paper certificates from the clients that tptb were supposedly storing the gold for, will we ever know if the gold ever existed? is this not destruction of evidence?
want a chest of gold sovereigns!
Tulips & BitCoins, and GOLD. simply amazing, but that's how & why shorts make money - taking advantage of frenzies. the issue is timing, not the asset, or lack thereof. and anyone who is foolish enough to buy into India-buying, owning the physical, hedge against inflation, well - bonne chance! reminds me of watching a woman on CNBC buying MORE silver early 2011 when had dipped to 45 - how's that working out????????? and for the really intelligent here, don't say silver futures are different......
next up - YHOO, after a successful AAPL. and, HLF
What about the people who bought silver at $5? You pick a 2-year period to prove your point?
On a small enough timeline even Paul Krugman can seem smart.
"On a small enough timeline even Paul Krugman can seem smart."
You're being way too courtious, Meat Hammer.
and where is your Nobel?????
Where is Paul's, given that no such prize exists?
and u, my "little" friend, prove exactly the point i was making - thx
so, what is your point exactly? u hold on forever? u bought silver @ 5 on 8/19/2003? u're NOT sorry u didn't sell 8 YEARS later @ 48, & replace lower? u're not nimble enough to recognize a bubble? a 2 YEAR period is not long enough for u? what IS your "investment" horizon(& don't say forever)? btw, buffett's 'forever' is really not forever, but then again, u believe the headlines, n'est-ce pas!!??
".....even paul krugman can seem smart"? just what is it about u & all the others that seem to have a natural hatred toward krugman? it's fairly obvious there is a lack of understanding about linear, or even its derivative thought processes......
u s/sign your comments using "meat head" :)
I'm thinking like an Asian. It should stay in the family for generations. This is not all about "me" and a short term profit. If you want to go global then you better start thinking like the rest of the world or be left behind.
stay being asian, makes my job easier. i assume u recall where gold/silver was prior to 2000? and, when someone has the irritating response "this is not all about me" it usually means IT IS!
Ah. An ad homenim attack. The sure sign that you have no logical basis or point to argue. And as to the price before 2000 have you ever heard of that nasty thing called inflation?
is that a statement or a comment, or what seems to be typical - an unsubstantiated 'guess'? and, if u think gold went from 200 --> 1900 based on inflation, i'm sure u still believe in world peace. i do suggest u take an unbiased international economics course before continuing; & it's "ad hominem" just for the record.
Dear jaygould,
Do not need any words, and do not need your opinions and speculations about the gold. One need only look at the chart of gold against the dollar, without any bla-bla-bla about the gold.
http://pricedingold.com/us-dollar/
well, i can only assume u are doubling up at this level as per your bold statement above. if u're not, then i can only further assume, what u have, is only your opinion, which like assholes, everyone has!
Are you serious? How do you short gold? I mean, real, physical gold. Someone lends it to you and you sell it?
Do you know someone stupid enough to lend you some gold, knowing your bussiness plan?
i thought people on this site were "somewhat" intelligent! thx for ending this thread with your moronic comment.
Your comment smells like troll fart.
glad to see U never let intelligence get in your way!
why wasn't my post posted? thx, obviously there was a time lag.
http://www.forbes.com/sites/greatspeculations/2013/04/17/gold-will-get-the-last-laugh-on-central-banks/
Gold Will Get The Last Laugh On Central Banks
Delivery drivers are gonna be like: "What the hell is up with all of these small yet heavy parcels with obscure return addresses?"
Phyzz fights back. Let's see if the bankers go double down and try another paper dump. This is really entertaining.
Forgot to include Indian, try to ask they whether gold has 'fundamental', same to Arabian, burmese...
I spoke with one of the known silver/gold internet retailers this morning about an unfulfilled order. One of the order clerks estimated that their order volumn for silver and gold the past few days was 5X normal. (I asked, " I know you guys are swamped the last few days, how crazy is it? It is ten times normal? Five times normal?" She paused for a few seconds and said, "About five times normal.")
Anecdotal but I pass it along.
I got burned Monday, but got out with little damage (as compared to the past).
Guess trying to convery paper to physical plan didn't work as planned.
Is it just me, or has anyone else ever seen slw trade blow slv before? Miners continue to get smoked.
I got burned Monday, but got out with little damage (as compared to the past).
Guess trying to convery paper to physical plan didn't work as planned.
Is it just me, or has anyone else ever seen slw trade blow slv before? Miners continue to get smoked.
Banco Azteca sells Libertads today at $357 Mexican prints per ounce. That is around $29.00 US prints for a silver ounce; $6 FRN above the paper price or 26% over the COMEX “reference” cost.
No discounts on physical here.
Email just received from ABC Bullion - Australia's largest bullion dealer:
"Thanks For Your Patience!
What a week it's been in the precious metals market! Thanks to all the hundreds of clients who have been to see us, or placed orders online or over the phone in the past 3 days, it's been great to hear from you all.
Most of you are extremely excited by this drop in price, as we are, and we want to thank you all for your patience during this incredibly busy time. We've sold record numbers of our 1oz bars this week, and our team is working hard to make sure that we've got the gold and silver you need.
If you've been down to Pitt St to see us, or you've been calling our phone lines, please continue to bear with us as we try to take all your orders.
How To Avoid The Queues!
Collect LaterAlready placed your order and paid for your invoice?
Why not wait for a while before you come and collect your metal?
Don't worry, we'll keep it safe here for you and you can come and pick it up later when you've paid for your invoice. Your price is locked in and your metal is safe - avoid the queues and come and pick up later!"
How comforting.