How The Chinese Buy Gold?

Tyler Durden's picture

880 grams at a time...

 

 

As China News reports, in a gold shop in Taiyuan, Shanxi Province, a "tyrant female" (Google Translate must have loved that one) bought more than 880 grams of gold jewelry. Lunch boxes were used to weigh the gold and it left other shoppers speechless with admiration.

Reporters on the scene saw the woman buy gold jewelry and diverse, there are a dozen light gold ring, the rest of the gold necklaces, gold pendants and other a lot. The staff at the time of weighing a total of more than 880 grams of gold jewelery boxes accounted for nearly one-third the size of the load box, stacked full of gold so that shoppers around again and again speechless.

Faced with the question, "why buy gold", Ms. "buy gold" did not want to say, but suggsted for her "own use."

 

Perhaps she read Grant Williams anti-"Anti-Gold-Idiots" discussion this week:

"So these anti-gold idiots are just that, idiots, or else they have the memory of a goldfish, because currencies come and currencies go, as sure as night follows day. It is the natural order of things. And as you can see, it's not about trading gold to get rich or getting long gold or buying one by two call spreads or getting fancy, it literally is about protecting yourself in the end. It's not like Williams got rich. He just stayed rich. Everyone else got poor."

When Western central bankers rubbish gold as a "barbarous relic" or, as in the case of Ben Bernanke shortly before he started his job at The Brookings Institution left office in January, admit to a complete lack of understanding of it, does it not strike you as strange that, having accumulated significant stockpiles of gold over the years, they aren't in a hurry to swap any of it for paper money (well, with the notable exception perhaps of the United Kingdom, thanks to the antics of Gordon Brown, King of the Idiot Chancellors)?

It shouldn't.

Gold is held by Western central banks for exactly the same reason individuals ought to hold it: protection.

Central banks are accumulating gold because it cannot go BANG! like fiat currencies do.

Individuals should be doing the same — not being sidetracked by the distractions.

It's not about price. The story Jared shared with us demonstrates that beyond any doubt.

If you own gold, it will do all the heavy lifting for you when the time comes

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Greenskeeper_Carl's picture

good for her, but if it is for a storage of wealth, why pay more for gold in jewelry form?

 

johnQpublic's picture

enjoying a good conspiracy, as i do, the lack of concern for gold by central bankers almost makes me wonder if something is afoot

such as? you may ask

i saw a bit on discovery the other day

though a slow process, they were making gold in a lab somehow

scalable?

dont know

but it makes me wonder

BaBaBouy's picture

Very Smart People...
They Will Be Well Rewarded With Their GOLD Metal Money #1...

SWRichmond's picture

Faced with the question, "why buy gold", Ms. "buy gold" did not want to say, but suggsted for her "own use."

Prepper?

I seem to recall Kyle Bass buying a shitload of nickels, and telling people "I just like nickels".

mjcOH1's picture

"Faced with the question, "why buy gold", Ms. "buy gold" did not want to say, but suggsted for her "own use."

Prepper?"

 

Commissar's wife, doing her part to protect the people's wealth.

BoNeSxxx's picture

Other competing China headlines:

 

A bag of rice fell from a shelf

A bicycle was stolen

mkkby's picture

The media was ON HAND for some woman buying 2 ounces of gold.  Hmmm.  What a lucky coincidence. 

Who fronted her the money for this, and why???  Obviously this was guerrilla marketing, but for who?  Probably the jewelry store... but many other possibilities.

HamFistedIdiot's picture

Uhm. That was about THIRTY ounces of gold. Not a bad haul.

Soul Glow's picture

China has been telling their citizens to buy gold for years.  I wouldn't be surprised if it were propoganda.

HamFistedIdiot's picture

China is proud of Mao's killing 80 million of its own. I really can't see the Chinese leadership giving a shit about the common Chinese person. There certainly is no safety net nor environmental regs. If the Yuan is backed by gold and becomes central to the world's reserve currency, there is a good chance the Chinese gov will confiscate. But let's hope that doesn't happen. It would be karmically appropriate if the Chinese found themselves wealthy one day, as 100 million fat Americans on the dole find out how vulnerable they are as the USD loses 70% of its purchasing power.

Soul Glow's picture

If we should go there, because people here think the US .gov will confiscate their gold, imagine what China will do and how much gold they would get.

The Dunce's picture

OK.  OK.  We get it.  The Chinese worship gold.  You retards.

chumbawamba's picture

It certainly has no business being shamelessly whored here, but I do read the dude's blog occasionally.  I can't help, I keep falling victim to his minefield of links, clicking on them thinking I will be lead somewhere relevant but instead am treated to a log of his daily routine.  It's thrilling, actually.

I am Chumbawamba.

fonestar's picture

DON'T BE LIKE CHINA.  CELEBRATE 223 DAY TOMORROW!

The potheads have had April 20th for many years now (420 the police code).  Nothing scares the Obamas, the Maos, the Cass Sunsteins, the social engineers, boot-lickers and state worshipers more than to see people go out and vote with their dollars!  Buy something firearms related tomorrow, preferably scary tactical looking with a folding stock and high capacity magazine.  Or better yet, take someone shooting who has never shot a gun before.

Celebrate your rights loudly and in their faces, or lose them forver.

CoonT's picture

223 day? First I ever heard of it. Are you a member of CSSA or NFA? Damn, 223 day is here to stay! I think I'm going to the range today....

Closet canuckleheads and their "high cap mags" lol, love it!

fonestar's picture

There are high capacity magazines in Canada.  Being able to arm and protect yourself is a god-given right accross the globe regardless of what any smarmy politician says.  Just like it is fonestar's god-given right to be able to send $1 billion dollars to Tehran without anyone knowing about it.

MSO's picture

April 20th? Why wait so long; 308 day is just a couple of weeks.

fonestar's picture

Because 223 day is already established and it's associated with the liberal's darling, the AR-15.

chumbawamba's picture

Dude, you obviously have never touched a joint in your life because you have no fucking clue where 420 originates.  You're a shameless hack.  I will give you my bitpenny if you promise to go away and spend it.

I am Chumbawamba.

fonestar's picture

420 dipshit.  And no, fonestar couldn't care less about the potheads and what they do.

 

http://en.wikipedia.org/wiki/420_%28cannabis_culture%29

Papasmurf's picture

When money enters a gold purchase it is held long term.  China has too much currencly in circulation.  An ideal solution is to encourage citzens to swap their excess currency for an asset they will hold forever.  What they spend on gold is not driving inflation in their country.  Gold sales are deflationary.

Tompooz's picture

"China has been telling their citizens to buy gold for years."

It hasn't. This is an urban myth, grown from a single news item on CCTV showing citizens purchasing gold, when the ban on such transactions was lifted.

 

Soul Glow's picture

Personally I wouldn't buy gold jewelry, because of the premium, but any way it goes down, it won't matter if it is coins, bars, or on spindles - gold is a valuable commodity.

Real Estate Geek's picture

Some, like Ferfal, recommend jewelry for resale. Sell your dear departed Mom's necklace an inch at a time, and you are perceived as broke by the buyer. Sell a gold maple, and people start to wonder how many more of 'em you have at home.

Sweet Chicken's picture

Ding ding ding

Smartest thing I've read in a while concerning gold and the common mans attempt to survive through the economic shit storm heading our way. Accumulate as much scrap precious metal as you can. Those earring backings and left over shanks could easily be traded to feed your family in a pinch. It is quite easy to trade ounces of this without drawing too much attention to yourself, start throwing around coins and you might as well announce to everyone to rob your house. This is the primary reason silver bugs believe in silver so much. Well that and the complete destruction of this fiat monetary system we have. :)

Thomas's picture

Got a little math problem brewin' there, although your point is still made.

Pool Shark's picture

 

 

This is news?

880 grams isn't even 2 pounds

I'll bet there are a lot of Chinese buying much more than this...

[P.S., that's only about $37K melt value at yesterday's closing price. How many Chinese spent $37K on cars yesterday?]

 

 

mjcOH1's picture

http://www.nytimes.com/2013/07/20/world/asia/survey-in-china-shows-wide-...

 

"Average annual income for a family in 2012 was 13,000 renminbi, or about $2,100. When broken down by geography, the survey results showed that the average amount in Shanghai, a huge coastal city, was just over 29,000 renminbi, or $4,700, while the average in Gansu Province, far from the coast in northwest China, was 11,400 renminbi, or just under $2,000. Average family income in urban areas was about $2,600, while it was $1,600 in rural areas."

 

soo....probably not most, unless they dumped 10 years of total income.   

but of course, all pigs are created equal.    just some are more equal.

Berspankme's picture

Averages lie. There are about 100 million Chinese that have stolen huge amounts of money. Yes, there are 1.29 billion that have nothing but 100 million is a lot of people to buy gold

FEDbuster's picture

Assuming that all the jewelry bought was 14K, the purchase was about 16.5 troy oz of pure gold or about $22K worth.  Not really news worthy.  The better ZH Chinese gold purchase story was a few months ago when 10,000 people were waiting in line in the rain to buy gold for some Chinese holiday.  In the US, the only way to get 10,000 people to line up for something is to offer Section 8 Housing applications.

laomei's picture

Yea, Chinese don't really buy K-gold. It's all pure stuff that's in demand.

laomei's picture

Averages lie because they ignore the fact that the rural areas drag it all down.  For the major cities, you're looking at median household around $15k or so.... which is dragged down by the migrant workers as well as being dragged down even further by the low-end jobs that provide room+board, as well as the many jobs which have low monthly but high cash (unreported) bonuses.  In reality, on average, a city-dweller is looking at something in the 20~30 range.  Of which, over half goes into savings.  Having $100k+ in cash is really not all that rare either, and a family with housing sorted can easily live off of the interest with all earnings going into savings.  Farmer income is also rather underreported, as it tends to be a cash business and farm-income is tax free, but look around at the homes they are building and you'll know they generally tend to not be all that poor.

Again, there is 100 trillion rmb of CASH sitting in the major banks accounts, not invested, just sitting there untouched.  If even a portion of that was used by the masses to buy gold, it would require mass imports on a scale never seen before in human history, and the forex reserves would be drained to cover it.  In the end, that gold is imported by the major banks, who would then kick the fiat back to the PBOC for forex used to import.  The PBOC can just as easily re-issue it to keep away deflation, which keeps costs here down in terms of forex, and the sucking continues.  USD has to go somewhere, and the only logical place is back to the US, which is then faced with inflation, so the government issues bonds, which are bought to lock away the liquidity... which raises the national debt, which causes more problems.  

climber's picture

Alchemy is alive and well then. 

johnQpublic's picture

But Lab Director Stew Pidasso said Tuesday night the lab's scientists have produced economic quantities of the precious metal in a different way.

"The alchemists and the early nuclear scientists failed to realize that there's more than one way to skin a proton," Pidasso said. "Instead of trying to knock protons out of lead, protons can be borrowed from metals with lower atomic numbers and added to make gold."

Pidasso said the lab, a division of the U.S. Department of Energy, first achieved the transformation by borrowing protons from copper and nickel and adding them to bars of iron. But when copper and nickel supplies ran out, the lab began using protons from calcium, which is abundant in seashells along the nearby California coastline.

According to Pidasso, using proton borrowing and high-quality varnishes, the lab will be able to manufacture about 1,500 metric tonnes of gold per year, which, he predicted, might indefinitely fill what is estimated to be the gap between annual world gold demand and mine and scrap supply.

Pidasso said the laboratory's gold research long has been funded by grants from JPMorganChase & Co. and Goldman Sachs Group Inc. but that recently "enormous" help had been provided by Bear Stearns Cos.

 

 

edit:this is from 2007

slightlyskeptical's picture

Transmuting paper gold into nothing

WWW. GLDETF.com

 

SafelyGraze's picture

the gold-from-seashells article is fantastic

hugs,
ben dover, author and seashell collector

 

 

HulkHogan's picture

Ben Dover from the San Francisco Comical. People will believe anything written on the internets. 

MayIMommaDogFace2theBananaPatch's picture

...and he powers the entire apparatus with a SINGLE 9V BATTERY! </sarc>

RafterManFMJ's picture

No, it's never included; is this your first day?

MillionDollarBoner_'s picture

Sometimes it is included but its covered in chinese writing and lasts about a day before leaking into the circuitry and ruining the gizmo ;0)

gaoptimize's picture

Can you imagine the temperature and energy requirements that would be required to pull this of in anything beyond micro-gram scale?  It is inconcievable.  The nuclear waste would be monsterous in volume.  It would require a very coherent particle-eqivalent to Light Amplifiacation by Stimulated Emission of Radiation (LASER) (PASER?) in the form of protons or neutrons, and as far as I know, such a trick is currently impossible and may always be.  In any case, the power requirement and waste generated would require its own planet.