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Gold Bar “Supply Constraints” In Singapore Sees Record Premiums

Tyler Durden's picture




 

From GoldCore

Gold Bar “Supply Constraints” In Singapore Sees Record Premiums

Gold rose to a one-week high, as the dollar and stocks retreated after another 5% plunge in Japan’s Nikkei. Silver, platinum and palladium advanced also.

Physical gold demand remains robust internationally and supply issues in Singapore have led to premiums reaching a record high there.


Gold Spot $/oz, Daily, 3 Year – (Bloomberg)

Some of the buying on futures markets may be shorts being forced to cover their record short position. The COT (Commitments of Traders) data clearly shows that there is the strong possibility of a significant squeeze of speculators short gold. This could be a catalyst to propel gold higher.


Cross Currency Table – (Bloomberg)

Traders and speculators are watching the $1,413/oz resistance level. A daily close above this level will likely trigger the beginnings of a short squeeze.

Holdings in the largest bullion-backed exchange-traded product expanded yesterday for the first time since May 9.

Strong premiums for gold bars in Asia show that jewellers and investors are busy buying bullion on this dip. In Singapore, Reuters reports that “supply constraints” have sent premiums to “all time highs” at $7 to spot London prices.

Animal spirits are returning to the gold market in the ‘Land of the Dragon’ in this the ‘Year of the Snake’.

The volume for the Shanghai Gold Exchange’s benchmark cash contract surged to 19,599 kilograms yesterday from 15,641 kilograms the day before. In two days the volumes have nearly doubled and surged from 10,094 kilograms to 19,599 or 94%.


Nikkei Index, Daily, 1 Year – (Bloomberg)

Animal spirits have been greatly in evidence in global equity markets for many months now with abnormally strong gains seen in many surging markets. This is despite a very uncertain global economic outlook and great uncertainty regarding corporate earnings in the coming months.  

With many stock markets overvalued on a host of benchmarks, there is the real risk of a material correction in the U.S. and other markets and this should lead to renewed diversification into gold.

It will also lead to renewed safe haven demand if other markets see stocks plummet as has been seen in Japan in recent days.


S&P 500 Index, Daily, 4 Year – (Bloomberg)

The 17% correction seen in the Nikkei in the last week alone, looks likely in the coming months in other markets which are increasingly being driven by liquidity, debt and margined speculation rather than value investing.

The rotatation out of gold and into stocks seen in recent months could reverse very quickly and investors may just as quickly rotate back into gold in order to hedge significant macroeconomic risks.

 

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Thu, 05/30/2013 - 08:13 | 3609884 Confundido
Confundido's picture

Ready for the 8:20am ET smack down?

Thu, 05/30/2013 - 08:17 | 3609893 GetZeeGold
GetZeeGold's picture

 

 

Time to make the donuts and demonize gold.

 

Plenty of equities to buy......no pushing or shoving!

Thu, 05/30/2013 - 08:30 | 3609917 kralizec
kralizec's picture

But I like pushing and shoving sheeple out of the way when I am buying barbarous relics!

Thu, 05/30/2013 - 11:25 | 3610558 13thWarrior
13thWarrior's picture

Beware ZH, you'll need a license to publish news about Singapore in couple of days.

http://www.reuters.com/article/2013/05/28/net-us-singapore-internet-idUSBRE94R0G220130528

 

Seriously there couldn't be a more creative waythan this. Who says Singapore lacks creativity.

 

Thu, 05/30/2013 - 13:35 | 3610914 Nehweh Gahnin
Nehweh Gahnin's picture

"The MDA said the new regulation did not apply to blogs, though adding: 'If they take on the nature of news sites, we will take a closer look and evaluate them accordingly'."

Thu, 05/30/2013 - 23:26 | 3612633 13thWarrior
13thWarrior's picture

Today's special is "Boiling frog".

Thu, 05/30/2013 - 09:57 | 3610242 Silveramada
Silveramada's picture

updates form the underground world of precious metals dealers...

http://zysites.com/silververitas/

 

the shortage is not over yet.

Thu, 05/30/2013 - 10:53 | 3610440 Deo vindice
Deo vindice's picture

That has to be one of the most irritating, hard-on-the-eyes sites to read.

The message might be read if they changed to a readable format. (dump the black background)

Thu, 05/30/2013 - 08:13 | 3609887 ParkAveFlasher
ParkAveFlasher's picture

Dragons and tigers and snakes, oh my!  Dragons and tigers and snakes, oh my!  

Thu, 05/30/2013 - 08:49 | 3609979 eddiebe
eddiebe's picture

you can say that again.

Thu, 05/30/2013 - 08:54 | 3610000 Never One Roach
Never One Roach's picture
Chinese Year of the Snake 2013

 

 

According to Chinese Astrology, the Year of the Snake person is a smart person. They think of clever schemes in a cold calculating manner. This Chinese zodiac animal sign represents people who are loners and use others to achieve their aims and goals. Their Chinese horoscope makes for interesting reading. Their goals may be worthwhile for mankind or could be solely for the gain of the Snake person. Some people find them attractive because of their swift movement and slender silky beauty. Other people are repelled by the Year of the Snake person because of their perceived danger. Whatever - the person born in the Year of the Snake will invoke a strong reaction from people.

 

http://www.cultural-china.com/Kaleidoscope/cultural_tool/year_snake/

Thu, 05/30/2013 - 10:25 | 3610340 Scro
Scro's picture

Yea! I'm a snake.

Thu, 05/30/2013 - 12:51 | 3610784 akak
akak's picture

That's funny.

Somehow, I was under the impression that 2013 was officially the Chinese Year of the US 'american' Citizenism Citizen, whose Blobbing-Up Nature is Eternal.

Thu, 05/30/2013 - 13:07 | 3610829 TheFourthStooge-ing
TheFourthStooge-ing's picture

Ah, ah, Chinese Citizenism Communautist Party makes same declaration at beginning of every Chinese Citizenism New Year.

Such is the eternal nature of Chinese citizenism carbunculosis. Bear with it.

Thu, 05/30/2013 - 13:26 | 3610884 akak
akak's picture

Ah, but the carbunculosis of the Chinese Citizenismish world is very cozily cornicopious, you'll see.

Thu, 05/30/2013 - 08:18 | 3609895 greatbeard
greatbeard's picture

A $7 premium to spot?  Whoopdi frickin' do. Gold has been jammed down several hundred dollars and somehow a $7 premium soothes the burn?

 

I see some wanker in my area on Craigslist making a big deal out of his offer to pay melt value for silver eagles.  Rot in hell shitbag.  (no offense meant to shitbags, or any nationality/ethnicity/religion resembling shitbags)

Thu, 05/30/2013 - 08:27 | 3609906 GetZeeGold
GetZeeGold's picture

 

 

I'm fortunate.....we don't have any wankers on my local Craigslist. Probably because we can still own guns here.

It really pisses off our politicians......but we don't care.

Thu, 05/30/2013 - 08:31 | 3609918 Its_the_economy...
Its_the_economy_stupid's picture

@G Beard

Really Funny!! +1

 

+100 for not being rayciss!

Thu, 05/30/2013 - 11:13 | 3610515 Thisson
Thisson's picture

LCS often pay spot for silver eagles too.  At least here in NYC.

Thu, 05/30/2013 - 13:25 | 3610881 KnightTakesKing
KnightTakesKing's picture

I think you would have to be a fool -- or very desperate, to sell Silver Eagles at spot price given the current manipulated low prices.

Thu, 05/30/2013 - 08:21 | 3609902 kindape
kindape's picture

it sure seems (based on news items on this site at least) that the culture of gold ownership in USA is tiny compared to Asia. I wonder what the cultural reasons for that are. (other than USA has had benefits of seignorage and peace for a very long time)

Thu, 05/30/2013 - 08:34 | 3609926 Canadian Dirtlump
Canadian Dirtlump's picture

lack of historical perspective pushed by a mongoloid education system perhaps. further exacerbated by a hollow do nothing but consume attitude and finally a gostocks or go home message pushed by the mainstream.

 

same as canaduh.

Thu, 05/30/2013 - 09:52 | 3610221 Divine Wind
Divine Wind's picture

 

 

Au Canada

Au Canada

Thu, 05/30/2013 - 10:24 | 3610338 fortune114
fortune114's picture

I told my Mom, who is an older boomer, that she should hold some physical as part of her savings.  She remarked that it would be too inconvenient when she needed to use it.  Now, when she needs to draw from her savings, she does an easy online transfer.  Gold, on the other hand, would be troublesome to go sell and then deal with the cash or arrange for a deposit.  I asked her how inconvenient it would be if the Gov't decided they needed to take 1/3 off the top of her account or the bank closed without warning one day.  Hopefully that sinks in. 

Thu, 05/30/2013 - 13:41 | 3610940 Nehweh Gahnin
Nehweh Gahnin's picture

I talked to my mom about my parents' stock & paper holdings too.  I lost some teeth when my jaw hit the floor when she responded, "None.  We got out of stocks and bonds completely.  Land and metals and food."  I guess my rants over the last several years did sink in.

Thu, 05/30/2013 - 08:21 | 3609904 Xibalba
Xibalba's picture

bizarro world

Thu, 05/30/2013 - 08:23 | 3609905 greatbeard
greatbeard's picture

>> The rotatation out of gold and into stocks seen in recent months

Seriously, that's what happened to gold and silver?  There must be some giant flashing neon sign on the trading floor that flashes on when it's time to rotate out of gold/silver cause the move is instantaneous.  Amazing, the sign flashes on and 500 tons of gold is dumped in a few minutes.  Funny how that sign always flashes on during slow trading hours or right at the open.

Thu, 05/30/2013 - 08:25 | 3609910 GetZeeGold
GetZeeGold's picture

 

 

You seem a little nervous amigo.....just buy some equities and relax.

Thu, 05/30/2013 - 08:32 | 3609921 Its_the_economy...
Its_the_economy_stupid's picture

fUNNY!!

Thu, 05/30/2013 - 08:38 | 3609933 moonstears
moonstears's picture

HLF-Herb for Life is a trendy pick./sarc

Thu, 05/30/2013 - 08:32 | 3609922 SheepDog-One
SheepDog-One's picture

Doesn't cost anything for the daily unsourced article of lies which is all it takes to prop-up all markets another day. No possibility to lose, eva!

Thu, 05/30/2013 - 08:33 | 3609925 sleepyguy007
sleepyguy007's picture

wow at exactly 830am ,   silver and gold actually went up.  its like seeing a werewolf or something.

Thu, 05/30/2013 - 08:52 | 3609993 FranSix
Thu, 05/30/2013 - 09:38 | 3610161 orangegeek
orangegeek's picture

Gold is finally heading higher in the near term.

 

http://bullandbearmash.com/chart/spot-gold-daily-consolidating-outlook-b...

 

A higher USD may slow this down.

Thu, 05/30/2013 - 09:49 | 3610209 Michigan
Michigan's picture

You can see the disconnect on eBay if you want. Krugerrand's were going for $1,533.00 yesterday when gold was only $1,392.00!

http://www.ebay.com/itm/1-OZ-Gold-1983-South-African-Krugerrand-Coin-in-...

Thu, 05/30/2013 - 09:52 | 3610217 Michigan
Thu, 05/30/2013 - 09:56 | 3610235 Divine Wind
Divine Wind's picture

 

 

With all of the Chinese knockoffs in circulation I cringe at the thought of buying PMs off eBay.

That is just looking for trouble.

I prefer to buy local. Fewer fault points.

If I  have to pay a higher premium in certain instances, so be it.

 

Thu, 05/30/2013 - 09:58 | 3610249 Michigan
Michigan's picture

Yet, even with all that risk we see Gold selling for almost $150 over spot yesterday evening.

Thu, 05/30/2013 - 10:17 | 3610316 greatbeard
greatbeard's picture

>> I cringe at the thought of buying PMs off eBay.

Many  years ago I bought a couple of gold eagles off of ebays and just about got singed.  The guy had a decent track record but apparently I was the beginning of the end.  Paypal saved my couple slices of bacon on that one.  A few months later I got an email of a deal that was litterally "too good to be true", an emergency sale of a fair amount of gold at a discount to spot.  In a moment of clarity I ignored the greed factor (actually it was the fact that nobody has to sell gold coins under spot that was the tip off).  A few months after that I got a letter from the postal inspectors wanting to know of my experience.  I want back and checked this guys ebay rating and right after me his ratings hit the toilet as nobody was getting their coins.  I had tracked  him down and called several times but he was never "available" but a Guedo sounding guy was always able to provide his excuse. 

Thu, 05/30/2013 - 11:16 | 3610526 Thisson
Thisson's picture

Lots of fees are embedded into Ebay and Paypal, including shipping and insurance.  Better to use the Nucleo exchange at BullionDirect.

Thu, 05/30/2013 - 10:08 | 3610288 youngman
youngman's picture

We are now in the period when all the real gold moves east....and nothing big will happen until someone can´t deliver what they are supposed to deliver...when that happens the market will react....and I do not think Central banks will be able to stop the event....other than dump their gold on the market....but that will be seen as panic....

Thu, 05/30/2013 - 10:31 | 3610356 toadold
toadold's picture

I spotted a guy selling the cases and the paperwork for proof coins on Ebay. So no way in hell would I buy a collectible coin off of Ebay.  You pay for a proof and you get the poof. 

Sun, 06/09/2013 - 12:28 | 3639183 FiatFrivolity
FiatFrivolity's picture

I've been holding off since 2011, but it may be time for me to stock up on some tiny 50 gram gold Valcambi CombiBars before premiums go through the roof.

http://www.buyinggoldbars.co.uk/bullion/valcambi-combibars/

Do NOT follow this link or you will be banned from the site!