China Hasn't "Seen This Gold Rush In 20 Years"

Tyler Durden's picture

As we noted last week, all around the world the demand for physical precious metals has soared in the days following paper gold's price collapse. As the FT reports, from Shanghai and Hong Kong to India, one dealer noted, "Older members who have been in the business for 50 years haven’t seen such a thing." The feverish buying has left many of Hong Kong's banks, jewelers, and even its gold exchange without enough gold to meet demand. Record volumes on Shanghai's exchange, lines outside Beijing jewelry stores, and the proximity of Hindu festivals drove "Indian physical demand and premiums," higher as the worlds two largest gold buying nations prompted one exchange CEO to note that we hadn't, "seen this kind of gold rush in over 20 years." It would seem the concerted effort to collapse paper prices in London and New York has provided the rest of the world a multi-decade buying opportunity.

 

Via The FT,

Asia is witnessing one of the strongest waves of physical gold buying in 30 years, with bargain hunters using the drop in prices to secure jewellery and gold bars.

 

The feverish buying has left many of Hong Kong’s banks, jewellers and even its gold exchange without enough yellow metal to meet demand. In Shanghai, the gold exchange saw volumes – often seen as a proxy for demand – rising to a record on Monday, while queues formed outside some jewellery shops in Beijing.

 

...

 

Haywood Cheung, president of the Hong Kong Gold & Silver Exchange Society, said the exchange had effectively run out of most of its holdings as members looked to meet a shortfall in supply amid rampant retail demand for gold products.

 

“In terms of volume, I haven’t seen this gold rush for over 20 years,” he told the Financial Times on Monday, adding that the exchange only had around twenty 1kg bars, and 100 five-tael bars left in its inventory. “Older members who have been in the business for 50 years haven’t seen such a thing.”

 

...

 

Trading volume on the Shanghai gold exchange jumped to a record high on Monday, reaching 43 metric tonnes, according to data compiled by Bloomberg. The previous record, set on April 19, was just 30.4 metric tonnes.

 

...

 

[In India, traders] reported stronger-than-usual buying as bargain hunters feared that prices had bottomed and would start rising once again.

 

The proximity of some Hindu festivals, usually trigger points for gold demand, further exacerbated buying. “Indian physical demand and premiums rose,” Suki Cooper, metals analyst at Barclays in London, said in a note to clients on Monday.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
nope-1004's picture

Banks can't print physical.  Take delivery and bury these crooks.

 

NewThor's picture

Tyler I got a messge for you.

Double dusted.

 

http://youtu.be/WiQAZlBU2bQ

Divided States of America's picture

This may be the 'bank run' on the fiat monetary system that the central bankers are worried about.

FL_Conservative's picture

Why do you think Bernanke has a "scheduling conflict" for Jackson Hole?   He's having a hard time finding a clean pair of tidy white-ies to wear.

Temporalist's picture

My first thought was that he doesn't want to answer any questions so there are no "market" "reactions" vis a vis his mouth. 

Jack Napier's picture

Hmm, no BitCoin shortage? Go figure. Hard money has its advantages.

NewThor's picture

WHOA.

Settle down, down arrow brigade. Sometimes I think you guys have been punched one too many times in the head.

Let me ask you this, if Comet ISON is 1.5 times the size of Earth, 

how much is GOLD going to help?

 

Dr. No's picture

Of course the answer is none.  But why do you need to drag out some end-of-the-world senario to downplay gold?  Pretty pathetic actually.

NewThor's picture

DOWN PLAY GOLD?

Are you paranoid much?

I am trying to get on BloombergTV with this story,

and I would mention that all gold and silver comes from

exploded stars, not a printing press.

This is pretty disappointing Zerohedge.

You guys get all lathered up about two 19 year old bombers,

but I put 4 excellent videos together,

and hope people will get the connection

that a SOLAR SYSTEM EVENT

seems to be the ONLY thing that explains

why every single government is printing at warp speed.

But, it's like all you want to hear is GOLD IS GOD.

I'm a hug fan of Gold and Silver and anti-paper, GLD and Bernanke too,

but you guys really got to take your heads out of your asses

and take your tunnel vision blinders off.

NewThor's picture

Looks like it's my day to fight in the ring at fight club,

Good, let's see what I can do? Who wants to go first? Or shall it be all at once?

Do you know how many death threats I've gotten for my Comet Ison videos?

Why don't you try and answer that question while you hide behind the 

anonimity of the down arrow? 

I am your brother. I bring you truth. And all you want is a fuckin' fluffer for gold

or your investments. 

Follow the Truth no matter where it leads you.

BITCHEZ

Rubicon's picture

What on earth are you talking about?

NewThor's picture

Google: Comet Ison WTF NASA Part 4 : Double Dusted

n8dawg84's picture

New Thor,

Where can I find your videos about the comet?  Thanks

NewThor's picture

www.youtube.com/thornews

There are 4 Comet Ison videos.

And, in the one I finished last night,

I put out a call to action to Tyler Durden of Zerohedge.

So, please people, stand down on your vitrol.

dammit.

I'm not some fucking Gold hater and distractor,

I've been on this site for a while,

and through my anti-bernanke/geithner

I DO BELIEVE IVE GOTTEN MORE THAN MY FAIR SHARE of high level visits.

That's why I don't post on here as much, OR make videos about economics.

The economy is too fuckin' fragile.

I don't want some type of Spanish Inquisition treason charge

for explaining to the masses how derivatives are the biggest scam

in the history of mankind.

I don't know why everyone is so fuckin' butt hurt about looking at the Heavens,

or even thinking about our Solar System.

I've been tracking and correcting NASA on it's minimal double peaked solar maximum

and it's 'false' comet ison conclusions. 

So if you don't want to support me, or take the 8:23 to watch my badass video

fine. 

...but while you're all fuckin' circle jerking each other off about Gold and Silver,

I'm over here trying to stay alive while talking the truth.

You're making me think Goldbugs have less brotherhood than thieves. 

I STILL LOVE ALL YOU BITCHEZ, bitchez.

T

PS. Tyler. Ain't no one gonna give a shit about Comet Ison until the Cool Kid in class (YOU) does an article on it.

PSS. SPACE is BIG BUSINESS. WHERE THE FUCK DO YOU THINK GOLD AND SILVER COME FROM???

 

 

NewThor's picture

Come on, step up to the plate, scappers.

Why don't you put some words behind the down arrows?

We all know that paper GLD will go up like a flame soon,

and physical will go parabolic.

How much constant confirmation do you need, son?

Why don't you step in the ring for a moment?

Let's test your intellect out, bitchez.

WillyGroper's picture

Thas right. Ask man on the moon mayor Newt.

Pope Clement's picture

Shut the fuck up Donny you're out of your element - Your fight is not here with ZHers but with the NASA douches and mainstream astronomers who have led you astray with their outdated gravatational models on the nature of the universe and have you bloviating such nonsense that Au and Ag came to earth in the dust from exploding stars. Calm down, the comic book like concepts of academic astronomy such as black holes, dark matter, big bang etc. are passe, you've got some catching up to do. But I will grant you that catastrophic solar system events are quite the game changer such as those of circa 6,000 ago which nearly ended humanity and gave rise to the stories of the old gods and to civilization too.... but that's a whole nother subject whose memories of fire and brimstone are still very much with us, peace brother

http://www.youtube.com/watch?feature=player_embedded&v=sbBZZyL7EJY

www.thunderbolts.info 

 

Dr. No's picture

I am not denying there is a astroid event comming.  Why else would Obama promote NASA activities around such things?  But, no matter how much prep or bloomberg airtime you get, it doesnt change the fact we will be splattered like a june bug on a windshield.  Until then, I will continue to live.

NewThor's picture

A) I am going to try to use my heart, mind and spirit to move any incoming asteroids/planets into an orbit that doesn't harm Earth. (Just like in the Matrix)

B)If that doesn't work, let's Comet Ison was going to dust the Earth and make it unbreathable for a few years (Hence all of the underground bunkers), well, would you want to be part of the team that hid the truth from people up until the end, or would you want people to know the Truth and have more time to get right with their maker?

C) All actions and thoughs echo into infinity. Don't believe me? Ok. After this life, I will show up in another life, punch you in the face and say 'Told you so.' (then i'll help you up and buy you a beer. no hard feelings bro.)

For the record, I don't know what Comet c/2012 s1 Ison will do.

I do know that Nasa says that Ison will be the biggest brightest Comet of all time, seen during the day for months like a second Sun, AND it's nucleus and make up are like an average comet.

THAT DOESNT MAKE ANY FUCKIN SENSE, bitchez

 

akak's picture

You make Jim Willie sound shy and conservative.

I think you are seriously unhinged.

Dr. No's picture

It makes sense to me.  In order to get a headline in this day in age, you need a whopper.  Therefore, NASA said "biggest, brightest, ever, no joke" so they could get some playtime between kardashians and various popstar tweets.  NASA is looking to get some funding and these kind of events help out if they can get the public's attention.  Without funding, a bureaucrat will wither on the vine.

EINSILVERGUY's picture

Dude,

Are you for real or dusting on something other than star stuff?  Get a grip

 

Rustysilver's picture

FL_Conservative,

 

NO, he is standing in line to buy gold like the rest of us.

Zero Debt's picture

Nothing like a good ol fashioned traditional bank run.

azzhatter's picture

I buy silver at apmex. Hardly anything available this morning, all out of stock

goldfreak's picture

it's true most bars and rounds aren't available

Provident is mostly delayed ans so is Gainsville

SemperFord's picture

I also like Apmex because I can avoid taxes and they ship quickly but no silver since last week.

gaoptimize's picture

I have a suspicion the the 100oz JM bar I ordered on Tuesday will not be shipped before the end of April as stated in the email I was sent by APMEX when they received my payment.

Captain Benny's picture

I stopped all business dealings with APMEX because they use JPM as their clearing banker.  Think about the information JPM has collected on PM owners world-wide... do you like being on that list?  Do you like supporting the cartel by encouraging people to bank with them?

Disgusting.

gaoptimize's picture

I'm concerned about this issue, so I called APMEX about it.  The customer service representative says they use the Bank of Oklahoma, a division of BOK, which my research indicates is not related to JPM.  Please clarify your comment.

WhiteNight123129's picture

It is nice to see that while Governments try to throw their own people at each other throats, the people of the world unite against their governments and their irredeemable currencies. People of the world unite!

 

THAT BEING SAID GOLD WILL FALL FIRST WHEN WE HAVE THE ILLUSION OF BACK TO NORMAL!!!

THAT MEANS WE ARE AT THE EARLY STAGE OF THE CHRONIC STAGFLATION!!!

THE MASSES OF INVESTING WILL BELIEVE IT IS A REGULAR CREDIT EXPANSION, WHILE IT IS THE BEGINNING OF THE BASE MONEY MOVING IN THE ECONOMIC WITH LONG TERM CHRONIC STAGFLATION IMPLICATIONS!!!

WATCH OUT FOR THAT FELLOW GOLD BUGS!!!

RafterManFMJ's picture

OW! OW! OW! My ears! My poor, deafened ears!

WhiteNight123129's picture

Oops, Sorry about that,

I am just warning that when people sitting on idle cash have confidence again we will have a last hourrah on stocks. They will spend their deposits in stocks and goods and services.

It will be very wicked because inflation will still be low and people will confuse this period with a ~back to normal~ while it is base money starting its decade long leak in the economy with at the end of the process a new level of prices.

This will be characterized by universal bashing of Gold, universal belief in central banks and cheers on stock markets and a relatively low level of inflation and the long bond starting to go down in price.

In fact it will be the beginning of a chronic long march of higher inflation and higher interest rates (yet lagging inflation, i.e. still negative in real terms) and contracting PE and a long rise in Gold price.

I expect the Gold price to be at 1,100 or even 1,000 at that point. So keep your spirit up when you see that.

 

THe next expansion will not be due to credit expansion but the dam of base money starting to move in the real economy....

 

 

MeelionDollerBogus's picture

THAT flies in the face of stolen deposit accounts & high inflation requiring those with cash left over to make minimum payments on credit cards to keep using them to buy food & gas. Retail’s burnt, burnt out, done.

DoChenRollingBearing's picture

Yes, if I can FIND some, I will buy more!

ParkAveFlasher's picture

GoldCore has silver eagles, krugerrands, maples, bars.

AllThatGlitters's picture

It seems that the situation between gold and silver is very different.

We are all aware that many dealers are out of (or holding back?) inventory and that Eagle Premiums at many are way, way up, even when back-ordering.

However, gold premiums haven't really budged.  Can buy Gold Bars for just $21 over spot still.  I've been watching this, and it hasn't moved:

http://www.pmbull.com/gold-price/

There are a variety of 1 ounce bars for cheap premiums too.  Are gold premiums going to start rising?

OutLookingIn's picture

Basic Fact:

Not enough to go around.

Plenty of paper - if you want it.

Just, that physical is scarce. Unless you entice it out of hiding with large premuiums.

Eventually this won't work. Bad money (fiat) drives good money (gold) into hiding.

People would much rather 'spend' their fiat before they touch their gold and silver.

AllThatGlitters's picture

Acting on conviction is the only way to go DoChen!

Shell Game's picture

+1

Dear junkers - admit you hate a sovereign individual's choice to protect their wealth because it is literally a BOLD claim on sovereign wealth.  It is wealth that is not yours, it is not the State's, it is a product of individual effort and an individual act of defiance.  

XitSam's picture

People whine about APMEX but they have gold. This is not the time to be complaining about price. Same for ammo. Food is next. Get you some now.

azzhatter's picture

I like Apmex. A little high priced but excellent service

Urban Redneck's picture

They have to pass on the legitimate cost to build and maintain a real-time inventory infrastructure, it's not a charity operation, and there is a value both in time saved by not waiting for an air breather and certainty of execution, but some people put a premium on price or hand-holding, and when your at or near the top of the heap (at least in terms of volume) both the customers and the competition will swing you and rightly so, otherwise- you fall out of shape. (that and the fact that the name crapmex just rolls off the keyboard...)

101 years and counting's picture

Still a bubble.  All these people will be shooting themselves when gold drops under $1000.

swissaustrian's picture

The mining industry will collapse sub 1200 first.