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Chinese Gold Exchange Sold Out - Begins Importing From Switzerland
Submitted by Michael Krieger of Liberty Blitzkrieg blog,
Chinese Gold & Silver Exchange Society Runs Out of Gold... Importing from Switzerland and London
Hong Kong’s Chinese Gold & Silver Exchange Society has been in operations for over a century, and it’s President Haywood Cheung was interviewed by Bloomberg news earlier today. Whoever orchestrated the attack on gold and silver in the last week or so has gravely miscalculated, since the response to the drop has been surging demand for physical gold and silver. While I tend to be skeptical when I hear about silver shortages since these reports have been so exaggerated in the past, the lack of silver coin availability and premiums are the most extreme I have seen since the financial and economic meltdown of 2008. Now we discover that the Chinese Gold & Silver Exchange Society has essentially sold out of gold bullion, and must wait until Wednesday for shipments to arrive from Switzerland and London.
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You do not have any problems to get as many Krugerrands and 1kg 999,9 bars loco Zürich and Geneva, as much as you want. Prices with a small premium over spot. As long COMEX is in US snd Gary Gensler is heading CFTC, they will win. Move COMEX over to Shanghai, I would enjoy the oarty.
Yes loco ZH or GE is no problem right now, but one couldn't get silver for $9 in 2008, not even the ugly 5000oz standard bars. So depending on the duration of the current price levels, we are even going to see shortages in Switzerland.
Try it next time with phys. covered products of Zürcher Kantonalbank and ask phys. delivery, you will get it, ZSIL SW and ZGLD SW.
The Chinese Gold and Silver Exchange Society operates in Hong Kong as a registered society. At present, we have 171 member firms which are sole proprietorships, partnerships or limited companies. Among these 171 firms, 30 are bullion group members. Bullion group members who want to manufacture good delivery bars may apply for the qualification of accredited refineries. Upon accreditation, these member firms may produce 99% fineness 5-tael gold bullions and 999.9% 1-kg gold bullions for delivery on the Exchange. The bullions they produce also circulate widely in the open market. To encourage more industry players to participate in spot gold market, we accept settlement accreditation applications from non members. The Members General Meeting is the highest authority of the Exchange. Twenty one members of the Executive & Supervisory Committees are elected once every two years in June. In this biannual election, each member firm has one vote. When the Members General Meeting is adjourned, the Executive & Supervisory Committees are the highest decision-making authority. They are responsible for implementing policies, effecting development plans and monitoring their effectiveness. To ensure effective performance of the many tasks of the Executive & Supervisory Committees, there are several subordinate groups. Administration work of the Exchange is carried out by the General Manager.
http://www.cgse.com.hk/en/about_01.php
Sexy.
...and he knows it
And they're out of gold? Oh baby....
there is some reason why they want it down below 1400.....all I see is buying...of hard metal...but yet the price drops...i think this next month will set new huge records in deliverys....the real metal...some day the LBMA and Comex have to fail in a delivery...then they will write a short little letter to the treasury that is you do not help us out...the world will fall apart and crash....and scream for help....a redo of the sub prime fiasco...
You got any stuff?
No.
Oh well then do you need any??
About time we forgot about the silly "terrorism" sideshow...it's ONE nineteen-year-old...and a government/media feeding frenzy. Neocons all excited.
Public radio preempted all other programming to babble breathlessly about this.
This reminds me of the government/media reaction in "V for Vendetta"...and the people just lap it up
Pathetic.
Ahh! Thank christ I'm not the only one who is amazed at this shit.
You know, for a nation that is apparently so happy to be murdering women and children all over the world in the name of....well, I'm not sure what it's in the name of, but that's another story, anyway, these people (my fellow amercans) sure go down like a sack of shit when it get a little bit real on the home front. Boston is in lockdown (whatever that means), tanks on the streets, because of a meek looking 19-year old.
ZH said a few weeks back that Bush and Obama between them are responsible for murdering 400,000 children. Overseas. One gets it in Boston, and we have this reaction. Anything wrong with this picture?
"Public" radio? I think you mean Terrorist Radio.
NPR, instilling fear and hatred in order to promote political change since the day they turned the lights on.
Bank of Israel Governor Stanley Fischer endorsed Japan’s efforts to end 15 years of deflation and suggested that other nations should refrain from criticizing the world’s third-largest economy. “Japan being as sick as it was for as long as it was, you’ve got to cut them slack in allowing themselves to work their way out of this situation,” Fischer said in an interview in Washington with Bloomberg Television yesterday.
My prayers tonight:
'Please God, let the vendors sell out of silver before the end of the month,
and I promise to cash out of my bitcoin position. Ahem'
OK. So if the price went down a lot, and then everyone started buying, why hasn't the price gone back up? If you are selling out of all your gold, isn't that a sign that you should raise your price?
Because what most people in the gold community refuse to admit is that the PAPER markets have total control over the "gold price".
Until naked short futures and options contracts, in which no metal ever changes hands, are prevented from contributing to the PRICE, this will continue with impunity. And that's not going to happen...
The ONLY way physical demand will ever overcome this gamesmanship is if there is either a failure-to-deliver on some major paper market exchange OR such a panic that shorts are wiped out and everyone is demanding only the physical metal...the latter is not likely to happen unless the entire economic system collapses...
In the meantime, we should hope to see a more-or-less permanent state of gold backwardation set in. That would be a very good sign!
Check APMEX, the paper price is not the physical price. $8 premium on a cull Morgan or Peace dollar. And this does not even consider the fact that one of these only contains .77 oz of silver.
On the street level, yes...you're right.
I suspect that the paper "price" will gradually morph into something like the $35/oz. or $42/oz. "official price" that we've had for decades...increasingly disregarded as more physical supply is taken from the paper markets.
Because they are buying real gold not ETFs. As am I. (I hold both.)
The spot price will increase as the demand filters back to the exchange and physical dealers demand delivery.
Stay in your home citizen. Do not wander out. Only answer the door if the person identifies themselves as a police officer. Never mind the armored vehicles in the streets. We will let you know when you may venture out the doors. Until then ..do nothing.
You may pray, if you like. ;-)
Well, assuming you talk to the right god.
I wonder how many Bostonians are huddled in the closet with scissors right now wondering if they might be better-off with a AR-15 topped-off with a 30 round magazine?
I thought I was the only one creeped out by this Doc. All of Boston, all suburbs shut down? WTF? What if I was supposed to have bypass surgery today? What about all the sales my business is going to lose today? I mean there are all kind and manner of implications that result from this. You don't just shut down millions of peoples lives to go after one criminal? This has got to be a trial balloon for something.
Good test for crowd control... and all thid for only one person? Imagine what they'll do if they perceive a REAL threat? 'REAL' threats being defined as any movement protesting the conduct of government or our ruling class...... Suits by OWS got settled with payouts BY NYC - but no matter as the xost was cheap compared to the cost of letting those demonstrations continue. God forbid we let the people think they have a voice.
umm krieger, i dont see this story anywhere in print............................
did you buy yet kito? I can't figure out if you are a contrarian or not. Everyone is selling paper and everyone is buying physical.
If you were a real contrarian you would be buying stocks right now
this world is so upside down fonz, i dont even know what it means to be contrarian anymore.........................
+ 1
Hear you guys...
But i'll keep trying.
Just ordered some ben franklins on line from APMEX. $23.70 on the dollar...
Dow green spot under 1400. Mission accomplished
You sure that is the mission> Knocking it down sparked a frenzy. So what do you do now? KNock it down further? Watch buying go ballistic? Or start to bring it back up and watch it go really ballistic as people are convinced the bottom is in?
Gold just go major wood, up 11 to 1402 after this afternoons smack down...
Dow green spot under 1400. Mission accomplished
I noticed that premiums for silver ounce coins are running between 33-50% right now. A 1/10th gold coin ($5 eagle) went for over 400 on ebay this week
As of April 19, 2013 at 14:20:
APMEX inventory:
2013 1 oz Gold Buffalos - 544
Random year 1 oz Gold Buffalos - 300
2013 1 oz American Gold Eagles - 3627
Random year 1 oz American Gold Eagles - 3919
Texas Precious Metals inventory:
2013 1 oz Gold Buffalos - Out-of-stock
Random year 1 oz Gold Buffalos - Out-of-stock
2013 1 oz American Gold Eagles - Out-of-stock
Apmex with their high premium's. I remember when I bought from them......what a fucking noob I was.
They weren't bad years back....of late...... WTF premiums.
So... no silver shortage in china then?
You mean... You mean... T-t-they buy actual gold, not paper-electr0nix ETFs?
How can you run out of GLD, when it costs $0.15/kWh to dig it out!
According to Bank of America Merrill Lynch:
http://www.scribd.com/doc/136941942/Gold-Capitulation-Bank-of-America-Merrill-Lynch
Gold capitulation
No current technical or fundamental support for gold prices
In a move last seen in 1983, gold prices collapsed by $215/oz or 14% over the last two trading sessions. Trading volumes in instruments such as futures or ETFs were 7-8 standard deviations away from the median. In our view, fears of central bank gold sales in the Eurozone and poor economic data out of China have been key triggers, with forced margin sellers likely exacerbating the spectacular downward move. Continuing a steady slide seen since October 2012 driven by a stronger USD and higher real interest rates, the sharp drop in gold prices comes at a time when disinflationary pressures are starting to build in different pockets of the global economy. Given a breakdown in fundamental and technical support for gold in the coming months, we remove our $2,000/oz price target for 2014.
Medium-term, jewellery demand should support $1,500/oz
Still, with prices now below $1,500/oz, we expect a pick-up in jewellery demand in the medium term and see immense pain for miners should prices dip below $1,200/oz. As such, we believe the downside to gold prices may be limited to an additional $150/oz. In fact, we estimate that jewellery demand may become so pronounced by 2016 that prices could trade above $1,500/oz even if investors remain net sellers. Looking at sensitivities from a different angle, investors would need to buy merely 600t of gold to sustain prices at $2,000/oz by 2016, compared to non-commercial purchases of 1,798t in 2012.
Official sector will remain a key driver for gold prices
Cyprus’ announcement to sell nearly 14t of gold reserves was a key trigger behind the recent meltdown, as it raised concerns that other peripheral nations may follow suit. Given our estimate that every $45/oz represents a net sale of 100t, the move over the last two days would suggest net sales of 480t, or about 20% of yearly mine supply. In short, the market seems to have discounted the combined future gold sales of Portugal and Greece! As we believe additional gold selling in the European periphery is highly unlikely, we find it hard to fully justify the sell-off. Having said that, for a firm near-term recovery in gold prices we would need to see a pick up in inflation, ECB easing, and EM reserve buying. None of these events are likely until 2H13, in our view.
Are you the new gold troll here or what?
Gold is a horrible hedge against inflation, so why do supposedly knowledgeable commentators keep mentioning inflation as a predicate to gold price appreciation? The relationship between gold and interest rates is much more relevant, and as real rates seem to be declining, one would expect gold to appreciate (setting aside disruptive price movements due to selling by distressed central banks)
I would agree that the interest rate relationship is relevant, although gold started its bull market well before rates were dropped to ZIRP (2001-2008).
That said, inflation has been understated by a country mile for over 20 years now (CPI hedonic adjusting, etc..).
Thanks so much for copying and pasting mainstream garbage.
Bounce back to 1400 was damn fast.....
does anyone really believe that the germans will get their gold back?
In remelted dildo form, styled after the Chrysler building.
Does anyone really believe they will continue to insist on getting it back at all...?
More to the point how come they can re-stock Hong Kong by Weds, but it will take 7 years to return German gold?
hey buy the way.... has anybody sen Fonz today? Fonz if you're on the lamb give us a shout out at the Hedge.
Hey Doc,
My wife's health insurance went up to $320 a week. Trying to get my daughter onto a state plan that is cheaper so I have had a day of red tape sitting in state offices watching the bureaucracy wheels spinning.
How long before the majority of workers are priced out of the health insurance market completely?
When does O'bummerCare take effect?
My real health insurance? It's called staying healthy.
www.marksdailyapple.com
That sucks. Have fun with that. I thought The affordable healthcare act was supposed to lower her costs.....go figure.
I have not been to the doctor in two years. My hobbies include throwing money out of my windows for fun.
I'm getting close to 10.
Ouch...Our health insurance had huge increases also and we've already been warned of another jun/july so we have decided to stop. We've been seeing an Holistic doctor for the past couple years and we pay cash anyways. We had a Catastrophic coverage plan in case of extended hospital/illness.
Health care is about to implode in this country. Obamacare is going to send it over the edge.
This all seems pretty obvious: When prices drop significantly, it's expected to see demand increase from buyers.
So what's the backstory? Doesn't it seem likely that the price drop is due to central banks (e.g. Cyprus) selling gold? Isn't that particularly so in light of the Washington Agreement on Gold, which is a gentleman's agreement among central bankers not to sell much gold, because (contrary to what goldbugs always say) Central Banks want gold to be higher in price (because it's a balance sheet asset that they lease out and earn interest in proportion to its value)?
It seems to me that this is a very good time to buy gold because, despite the risk that there will be more central banks selling, it seems equally clear the the situation in Europe is not improving, Germans are starting to become Eurosceptics, and the EURO money system continues to circle the drain on the way down. Domestically, US policy still isn't responsible, with the Fed continuing QE and the US government continuing to overspend.
Bankers selling stuff that doesn't exist and that they don't own just to raise cash. The Western banking model.
Au_Canary @Au_Canary31m
The Truth Rises - Coordinated Strikes Work Both Ways - May 1st 2013: http://youtu.be/QGZ5f1G1Ep0 Who's backing these vids? #Silver #Banksters
Anyone catch this? Who is funding this effort?
http://articles.marketwatch.com/2013-04-18/economy/38630953_1_federal-re...
Fed's Kocherlakota: Low rates may last 5-10 years
April 18, 2013
WASHINGTON (MarketWatch) - Financial market conditions requiring the Federal Reserve to keep rates unusually low may persist for the next five to 10 years, said Narayana Kocherlakota, the president of the Minneapolis Fed Bank on Thursday. This low-rate environment, and Fed policy, in turn, can be expected to "be associated with financial market phenomena that are seen as signifying instability," such as inflated asset prices, high asset return volatility and heightened merger activity, Kocherlakota said, in a speech at the Levy Economics Institute of Bard College. This instability is best addressed through effective supervision and regulation, Kocherlakota said. However, the Fed may have to confront the dilemma of whether to raise rates to reduce the risks of a financial crisis with the certainty that any tightening would lead to lower employment and prices, he said. The Fed is in a better position to address this challenge than it was in 2007, he said.
Earth to Kotcherlakota: If rates stay where they are now for much longer, there won't even be a Fed in 5-10 years.
How big will the Feds balance sheet be by then? They won't be able to hold interest rates down for just 85 billion a month...
Infinity!
Linear QE is obsolete. The next QE will be defined in exponential terms.
E.g. "Fed to double balance sheet every 18 months"
Then it doesn't have to be redefined again.
polo007
Go Away......
Price of Tungsten going to $2,000 / ounce
I was afraid this would happen...
Hi Obamao, same day prior to Boston bombing, there are 100 ton of golds blow up in Comex right front of CFTC by financial terroirists, which costs me two arms and two legs. Can you arrest these bad guys asap so free market can return to financial worlds? I know you have Texas oil on hand right after Boston pressure cooker.
go ahead ben, keep on knocking the bottom out of gold and silver! I'll just keep buying! so fuck you and your fucking ponzi stock market!
well said CG
All this buying is like lining up to kick the banksters in the face.
Remember, laces out.
I just kicked em in the face with purchase of 40 ben franklin half dollars....
ZH at its most obtuse... defending something that Pax Americana has debased.
The Oligarchy has decided that Ron Paulism and gold buggery is NOT AMericanism...move on libertarian minority, you are NOT LIKED by the ruling Oligarchy. There is something Chechen about the contrartian rhymes and chimes of ZH doom n gloom arrogance...
I'm saying this as a visitor from another planet called France; where we dance in statist trance to Oligarchy supremacy all the while our leaders sing "we are socialists". Our current leader is more François Mollet than from Hollande! If you appreciate that historical nuance.
To each his own delusion. I'm totally drunk on Chardonnay and logic that stinks of golden rule : do unto others...but that is now a parabole like : DO what you are prepared to SAY beforehand as electoral promise or stay silent, never betray that faith of people's trust as expressed in "one man one vote"! (Silver rule) or its Bronze brother : never junk the rule of law decided by the majority EXCEPT after institutionalised debate, and as a fucntion of NEW legislative majority...something as far removed from our current political reality as Fukushima's technology is to notion that progress and science are saviours of humanity; in all its dystopianally energised, toxically disseminated death sparks by oceans and atmosphere united, bizarre creations of 2I st century Fox or MGM of paranoid moguls of this crazy, head up ass world.
Why can't we respect exemplarity and rule of golden, silver and bronze rules; symbol of true Olympianism's extension into this political world; more attuned to law of jungle than starter's gun under rules of Baron de Coubertin.
We should be sons of Montesquieu and not those of Machiavelli...the man's whose doctrine our current media and politicians; whipped to white hot obedience by the all powerful oligarchy; recurrently bow to.
Print the legend never the truth...!
This isn't Hollywood this is the real world; no tinsel curtain should hide manipulation from puppet crony legislation.
'Cos that is asking for the return of barbarians to the gates; from Chechenya or elsewhere today; Saudi and Yemen yesterday; God's knows where tomorrow.
Beware remnants of first world middle class now fast becoming a species condemned to dire extinction.
You make me want to take a short cut to church this sunday, thanks.
I am probably the only ZHers that thinks this is a miscalculation if there is only one round of gold take down?
How much capital was lost in the 1600 - 1300 take down? Now with all the buying, how much more captial will be lost from the 1300- 1000 mark.
And this might be a dumb notion considering it takes 1300$ to product right? But man... can I ever see a suckers bet coming....
People buying physical are not betting.
Meanwhile people waiting for another drop ARE.
Simply put, if prices get knocked down further, there won't be an ounce for sale anywhere near those prices on the entire planet. Fekete's permanent backwardation is gonna go from Wall St. to Main St.
Shit. They'd have to take it below $800.00 to hit my dollar cost average for Au. Let them try. I'll just smile and buy some more for old time's sake.
That's the beauty of this. There are enough physical buyers at $1300/oz to clear the physical market. How are they going to break through the $1200/oz floor without blowing up the COMEX at the same time?
This is called "checkmate," bitchez.
I guess that explains going askless in China overnight to 1425 on no volume I could detect.
i can hear the conversation now in the halls of comex and the fed, "wtf! don't they know they are suppose to sell when we say sell? what are we going to do now? do we have to ramp the price to 2000 to get them to sell? will they sell? we don't have anything to sell them? we'll have to give them cash. we don't have any cash. wtf are we going to do? i know. maybe if we ramp the stock market they will sell their gold and buy stocks or maybe if we can push the 10 year down 100 basis points they will sell gold and buy dollars. or maybe if....what are we going to do? i want my mommy."
They do have enough cash for cash settling. Remember, they get to print it.
There is only one thing that is bothering me. If China is now having to order from China, who in Switzerland can afford to sell at this low price?
Couldn't they cover themselves with options on futures (yea, yea, I know it's paper, but some view them the same).
Who says they are? Premiums are there for a reason.
CIA -- they store gold in Kloten. The CIA can afford anything.
Whew - good thing I can still buy the paper - all you want in fact. Just put in an order at the ask - any ask - and it seems almost majical that 5000 lots show up until you are filled.
Thank Dimon!
I was quoted $1488 and $1478 from Scotia and RBC this afternoon. And silver Maples were $27 something and $30 something at Scotia and RBC.
Edit: Customer service said I was the 3rd person this week to enquire about PM and that was unusual. This was the largest banking centre in the downtown of a large city.
I walked into a Bank of Nova Scotia once because they were known in the media as the most "gold friendly" bank in terms of selling bullion coins. As soon as I asked about bullion they had to spend 10 minutes finding someone who even knew what they offered.
Eventually a woman came out and handed me a brochure and explained they didnt have any bullion except at the main branch. If I wanted that it would be a special order with high premiums because of the inconvenience. The said that Gold Certificates had a lower premium and the bank would even hold onto them for me (back then it seemed weird but writing that now it seems almost cartoonish).
"It says here in the brochure that gold certificates are backed by the assets of the Bank Of Nova Scotia, why not back them with gold?"
Blank drooling stare.
http://finance.yahoo.com/blogs/michael-santoli/gust-deflation-stirs-skittish-stock-market-163404101.html
Listen to the stock market the past couple of weeks and you’ll hear the hiss of deflation, of air leaking out of the 2013 rally as concerns build about downward pressure on economic growth, prices and corporate profit potential.
While the Standard & Poor’s 500 index ebbed 3.5% from its recent all-time high to Thursday’s close, this represents a sub-surface correction among stocks exposed to global economic momentum finally roiling the market’s surface. The index’s energy and basic-materials sectors are each down more than 5% in the past week.
Gold, suffering from dimming concern about systemic financial risk as well as cooling inflation worry, is down more than 20% from its all-time high and down 10% since April 11. Crude oil is off 15% since February and lumber futures are lower by 10% in a month.
The 10-year Treasury yield is near 1.70%, down steeply from 2.05% five weeks ago. An auction Thursday of Treasury Inflation-Protected Securities, or TIPS, which compensate investors for future inflation, drew the weakest bidding interest in five years, suggesting the markets have little fear that inflation will be a major concern in coming years.
http://finance.yahoo.com/blogs/breakout/stocks-set-scary-may-says-nenner-151635217.html
It's been so long since the stock market has done anything except inch higher, making it easy to lose sight of the big picture for stocks. The reality is, the S&P 500 is less than 3% off it's all time highs. Regardless of whether you think this is a buying opportunity or the beginning of the end of the rally, there's still time for traders to adjust their portfolios.
Count Charles Nenner, founder of the Charles Nenner Research Center, as someone who thinks the sell-off has only just begun. In the attached video, Nenner explains that those buying now in anticipation of an improving economy have missed the bus by four years. Good news gets bought once by the smart money, he says. Expectations that the macro picture will improve were a bullish catalyst in 2009. Now it's time to sell the news.
Nenner says his firm took off all of its equity exposure when the S&P was at 1,510 specifically so they "wouldn't have to deal with all this mess." He bases his work on cycles of time and price. From that perspective he says stocks are going to be forming a top in late April. Any market close more than a couple points below 1,544 on the S&P 500 would be an indication to him the market is ready to roll over in a big way. As of mid-day Friday, stocks are bouncing between 1,540 and 1,550; perilously close to what Nenner would consider a technical breakdown.
What happens then?
"I think the beginning of May it starts to get scary," says Nenner. Most people would argue it's plenty frightening already, both in and out of the stock market.
http://www.youtube.com/watch?v=4wgbpGF9kT0
The Secret World Of Gold Part 1
http://www.youtube.com/watch?v=5OEMBzbINBI
The Secret World Of Gold Part 2
http://www.youtube.com/watch?v=hZzlz8GlX-c
The Secret World Of Gold Part 3
+10.000
Btw, should you tell the Tylers? Maybe they want to put it in front page.
That's an excellent documentary. Succinctly summarizes the big issues with precious metals. I'm stunned that the CBC actually ran it.
Fantastic polo, thanks. Only thing I'd mention, documentary says 1933 govt paid $35 to citizens per ozt. Incorrect, if I recall they bought at face($20 ozt roughly face value of coins) THEN raised the govt price to $35, for foreign coin return, NOT paid $35 to the citizens for coin return.
The crooked bastards in charge have only increased demand for precious metals. The paper markets are becoming irrelevant. Keep stacking and short JP Morgan as they are about to become victims of the mother of all short squeezes.
Sounds too risky. They probably have gone long already, and will gain big profits from the upcoming short squeeze.