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Gold Tumbles Most In 4 Months On China Demand Slowdown Fears
Gold prices are down almost 2% this morning (over $25) as last night's slowdown in Chinese money-supply growth and fears that China's insatiable gold demand has become less insatiable send the barbarous relic back towards $1300. Slowing GDP expectations, increasing restrictions on shadow-banking commodity-backed financing, and a need for liquidity are all factors weighing on the precious metal this morning.
China's appetite for gold is waning after a decadelong buying spree, suppressed by the country's economic slowdown and constrained credit markets.
Demand in the world's biggest gold consumer is likely to stay flat in 2014, according to estimates from the World Gold Council. Gold demand in China has expanded every year since 2002, when it declined, according to the industry group, whose forecasts are closely watched in the gold market.
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Chinese consumption has helped to underpin gold prices since 2001, when many price and trading restrictions were relaxed. Last year saw frenzied buying as Chinese investors and jewelry buyers sought to capitalize on low prices. Chinese demand jumped 32% in 2013, vaulting the country past India to first place in the rankings of the world's gold consumers. But it is unlikely that record pace can be maintained, even if prices turn lower, according to the World Gold Council.
"We're looking at best for it to be on par with 2013," said Albert Cheng, managing director for the Far East at the World Gold Council. The council is releasing its latest report on China's gold market Tuesday.
Although the report doesn't offer a figure for estimated Chinese gold demand this year, it says 2014 will be a year of consolidation. "Chinese consumers brought forward jewelry and bar purchases, which may limit growth in demand in 2014," the report said.
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"We're not seeing the kind of crazy buying we saw last year," said store manager Karone Huang. Last year, "we couldn't even fill our orders fast enough. That's how busy we were."
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Where did Gold prices go when the Chinese demand was off the charts? Down! This whole system is a fucking fraud!!! The fact is that there is no Gold at all, this was another raid orchestrated by the US government and Federal Reserve by and through JP Morgan to prop up a failing dollar. I find this so disgusting I cannot find the words to describe this whole system built on lies, fraud and a fraudulent and dsihonest media!
look at it from the positive.....at least you know you're owned and managed.........now you can go back to Miley and Kim and GMO
Guess Charlei Munger's hems are stuffed.
that is the excuse given for slamming the prices? well, they must be really desperate ...
how convenient ZH puts this right under the big news on Ukraine ... just in case anyone wonders why?
Will see for how long the guys with money in the table buy it ???my bet not for long...
one thing is for certain, players are running scared, time to withdraw to higher ground
!% decline is big news?
Nobody cares if Netflix or Tesla go up or down 1%.
Charlie Munger and his Chocolate Skivvy Factory....
on a serious note they might get a quick hit sub 1200 again but it'll be short lived so take advantage . silver MIGHT break 18 BRIEFLY
Only Nixon can go to China...and only Chinese can buy gold.
Not sure I buy this as a reason - why is platinum / palladium falling too? More behind the scenes...
Yeah...gold demand might be "flat" this year according to the entrenched WGC (motto: "We hate gold")...but even the WGC reported in the *very same report* that the WSJ (motto: "We hate gold") cited that gold demand in China was set to rise by 20% by 2017.
But, as we all know, the WGC "demand" numbers are roughly 30% of actual demand.
Keep spinning boyz.
Even if Chinese demand was flat in 2014 (which I doubt) that would still mean that they will "consume" more than the entire world mining production... Left apart India and all the rest of the world. The World Gold Conspiracy can say what ever they want. We all know that they are part of the cartel and therefore rigg their numbers to provide a bearish outlook on gold.
^this..+1
Lets not forget that Indian will likely ramp up on the imports in the second half of this year, expect the new government to abolish the sanctions that are in place
For me its a buying opportunity!
So lets take a snapshot of this one...
The Chinese bought JPMs most expensive piece of real estate in the 4th Qtr of last year that just happened to include the vaults to there PM commodities business and more than likely other banks in the neighborhood...
Anybody been checking with a fine tooth comb what has been going (in and out) of those vaults since that "fire sale" took place that was depreciated by oh let's see... 60% of it's market value some have speculated the spread to be even higher?...
We need an audit!
Perhaps Bukake Bart Chilton of DLA Piper will give us a peek?...
Wouldn't Tyler normally call this a "collapse" or "crash" or maybe an "utter routing" of the gold price? "Tumble" seems so dry in comparison. Knuckles knows not to worry about paper prices. Cheers.
All that part of the article after "WSJ reports" - - -
is usually pure bullshit
The "reasons" they give for any movement is laughable.
no chit......told some friends in manhattan about mungers comments and they were first gen holocaust survivors and they would ONLY smile....they knew how the game is played....
china compliant-if you could see the whole picture-china is part of all this b.s.
but china is buying the actual metal. all i can do is laugh at how obvious this all is.
and how stupid the other half of these trades are...
the smell of fear to get a rational minded human to sell phyzzz!
Last gasp by the cartel? Enquiring minds want to know.
All I see are a lot of 'maybes' and negative projections by msm... oh yeah, I left out paper suppression.
Do people cancel the fire insurance on their homes when the cost of fire insurance drops?
^^^^ this. They will do anything they can and even attempt what they can physicaly not do in order to maintain control. And then it will all come crashing down hard.
Exactly! Bloomberg says World Gold Council says opposite..China Gold Demand Rising 25% by 2017 as Buyers Get Wealthier
http://www.bloomberg.com/news/2014-04-15/china-s-gold-demand-rising-25-b...
We know what happened when the paper pushers forced gold price to around $1180... Physical demand in East and Mid East went through the roof.
Why would the paper pushers expect a different outcome this time?
They've done 3 QEs with the same exact results.
They are either as dumb as fuck, or smart beyond compare.
The line inbetween is almost impossible to see.
one thing you and i must comprehend is they control the inputs and outputs. so where this goes is not for me to speculate...
it's the "new normal" at least thats what my dad says! (he's got an MBA!)
Sorry to hear that. We can't all choose who are parents are.
Agree with everything you have said, but according to a back of envelope calculation, about 40 tons of gold dropped the price today.
By sheer coincidence, 40 tons arrived last Friday from Ukraine!!
Surely some mistake?
"I find this so disgusting I cannot find the words to describe this whole system built on lies, fraud and a fraudulent and dsihonest media!"
The word you're looking for is: PONZI (or, a couple of other alternatives might be: PAPER; VIRTUAL) Tis the world of unicorns, all make-believe.
seer, losen some soil and plant some seeds and enjoy the day! that is reality! all this other shit is one big storm cloud brewing...
Yea. Just listen to those bootlickers on Bloomberg radio---Tom Keene and McKee. Both have 'jobs' that require them to 'not know' or espouse 'The Truth'. What lame pathetic soul of a man could be such a coward? They have prepared for themselves an eternity of wailing and gnashing of teeth!
Ohhhh, that China slowdown fear. Only $25 smash?
And they are finally growing weary after a decade of buying? <eyeroll>
Wohoo! I gots dry powder baby!
yes. 1250 and i'm back in again. pretty please.
Me too spanish; I'm getting tax refunds, they're going straight into a new leaky canoe.
dup.
RIGGED.
keep stackin...
The gold EBT program.
It is rigged and we've seen thias movie before.
The setup ... the hook ... the wire ... the STING
http://www.youtube.com/watch?v=LN2hBOIXhBs
so WSJ interviewed or polled millions of chinese gold buyers? ha
The price of gold has nothing to do with Chinese physical gold demand. Otherwise it would have hit incredible new heights in January and Feb this year not to mention last year. This article is pure propaganda.
Hope it goes down to $1000. I need moar.
Just another excuse to smack down the price, The COMEX is running so low on supplies it has to use another way to manipulate. I am sure the Chinese have no problem with it since what they buy is ALWAYS unreported
With the "all-in" cost to produce gold ranging between 1000 - 1300 usd/oz for different miners, it would be a impractical proposition.
Don't worry 4 guys on the phone in London will fix this until the bullion banks manipulate it down again but incredible Indian demand will help it strengthen but Chinese copper contracts tied to mouse shit will alter the perception negatively but only until JPM's vault can't meet delivery for the 23rd straight month but no one gives a shit because the GLD is now seeing inflows.
This stuff is easy to underestand you just have follow the story lines. Silver, on the other hand, has just been a consistent pile of shit, which is what you want in an asset. consistency.
Complete and total propaganda courtesy of the WSJ. I used to have a subscription. Cancelled it years ago. They called last week with a great deal for me. I laughed out loud at the poor sales rep. I told them I'd only be interested if then brought Tyler Durden on to replace that douchebag Hilsenrath.
i take it they passed on that...
And Yellen speaks Weds in NY on economy...
Bullshit. If I can offload a dollar for anything of substance you can bet I'm going to. Saving in dollars is suicidal. This article is simply, government propaganda.
And that right there is why I stack. Gold will go up and gold will go down, but it's a certainty that the dollar will weaken, if not outright collapse, in the future. My faith in gold is reciprocal to my lack of faith that the 'leaders' of the US will dig out of the hole they've created. When the Dollar loses resrve currency status, I'm covered.
When the Dollar loses resrve currency status,...
s/b "as the dollar loses reserve currency status". When the post mortum is conducted it's going to be very interesting to note the look on the faces of those who thought increasing the supply of frns from 800-900B to over 4T in 4-5 years and then threatening resource rich nations with trade sanctions were good ideas.
So, are the Fed and Obama Administration trying to crash the dollar on purpose? Dr. Roberts says, “No, they are just stupid and arrogant. . . . If you add up the IQ of the White House and you add up the IQ of the Fed and multiply it by a thousand trillion, it might equal 50. These are stupid policies designed to completely destroy the U.S. dollar. . . . I don’t think the United States can win the war against gold.”
---Greg Hunter with Dr. Paul Craig Roberts
http://www.bdlive.co.za/world/asia/2014/04/15/chinas-demand-for-gold-pus...
You sell all your gold and quit buying at the start of a crisis.
And that's why I never play the casino...
More like Goldman reiterated their call on sell gold yesterday. Gods work fittingly on Passover
Gold Viagra - If an uptick lasts more than 4 days, please call TPTB....This game will end, in the meantime, you know what to do....
Relax We will get another chance to buy at 1200 or maybe 1150. It won't really matter when the shit hits the fan.
You know what is so interesting, we see stories on here all the tim about Countries like Venezuela etc. Never see any articles about families in these places who had saved in gold and are now being rewarded for it.
I wouldn't tell my toilet paper starved neighbours that I own gold.
Unless you also own lead copper and brass of course....
where would you hide your beamer?
"Yet Argentines don’t just hold cash and see their savings erode, they have sought refuge partly through purchases of luxury cars.
From the Bloomberg:Oh pleez...buying a lux auto ain't gonna help you preserve anything. Wow...that would be stupid.
Bullshit. one, two, and 3 months out are in backwardation. Just a co-ordinated correction before the next leap. BTFD
Yawn. Bring on Goldman's $1030. Let's dance!
If $1180 folds, I like $1155 then a V recovery. I expect that the bid stack will be quite deep into that level.
Who doesn't love a sale?
Thank you.
That is all.
No doubt there are thousands of Chinese celebrating the price falling through $1300 by buying some more
Silver down 3% today and down more than 66% (inflation adjusted) from May 1, 2011 and the second death of Osama bin Laden. What is a bigger conspiracy - the lies about Osama's death (not one word is true says Seymour Hersh) or the conspiracy to suppress silver?
I call it bubble bursting, you call it what you want (or perhaps jump from $5 to $48 was normal?)
$5 to $48 was normal in a world that finally recognized the massive paper obligations around the world and tried to compensate. Ya $48 was high, over zelous, but that too is normal.
Compared to the vast amount of paper, of all sorts, printed in the past 15 yrs. silver and gold at these levels are undervalued. I believe that, one day, the metals will achieve a value = +/- to the paper obligations signed on to currently, as backing and legitimacy. But only after the psycopathic bullies are kicked out of the playground. Today's rout, and most in the past, just bullies being bullies protecting their turf.
There may be a conspiracy to suppress silver, but I can walk into a store today and buy a shitload of it. Grtanted, probably around $23 an oz. But until it is venezuelian toilet paper, the conspiracy will remain a conspiracy, that 99.9% of the people could care less about. The pings are growing fainter and the plane is in water that may be too deep to recover. Also the Kardashians.....
Who cares about gold, just another speculative asset. I'm not a gambler so I don't hold any.
ummmm, you may want to read up on some history bro.
Ohhh, gold is looking like it's going over the waterfall.
Dear eddiebe,
If you believe that, then I offer to buy ALL of your physical gold at today's price.
Is it a deal?
http://www.bloomberg.com/news/2014-04-15/china-s-gold-demand-rising-25-b...
Try buying an ounce of silver for $19. lmao.
The Fed needs to get their hands on some physical, so they can send it to the Germans. Time to monkeyhammer the paper market.
Making Deal???
Xi Jinping to Zhu Guangyao...
Americans! Can't live with them! Can't live without them!
TPTB love to dump the price in mid-April. Look at last year.
Who gives a shit? I really don't give a rat's ass about the price since I consider gold to be insurance and not an investment. For all I care they could drive the price down to $500, and if it's really available at that price (without the system blowing up) then I'll scoop up moar.
D.E.
That's the only way to play it at this point.
But the bullion banks are ever vigilant that John and Susie Q "shithead" will continue to part company with the barbaric relic that GLD Bad, Paper Good.. Either you are with us or you're with the terrorists!...
Well you know what I meant.
In all liklihood none of this debate will matter as our President and Congress are determined to build the foundation for starting a World War before GLD ever reaches $2,000 an oz anyway!
Gold and the US Dollar Fight to the Death-Paul Craig Roberts
http://usawatchdog.com/gold-us-dollar-fight-to-the-death-paul-craig-robe...
See you boys at $800/oz
more paper lies...when China, Russia, India and others were on record buying sprees the EE (Evil Empire JPMorgue) papered it over to drive it down and send more phyzz gold from West to East.
Now they spin this "gold tapering" bullshit to gain another opportunity to smash paper lower, and guess what??? More cheap phyzz or what's left of it will continue to be drained outta London and be shipped to China.
Don't panic...no one here should be gambling with their fiat in this rigged casino anyway.
Do as always and BTFD!!!
Let them have their lies and their bullshit paper games. We can't stop any of that, but we sure as hell can keep stacking while it's at clearance fire-sale prices once again.
This won't last forever so get more phyzz today and sleep well tonight.
Western Central Banks and the IMF are the mostly likley manipulators behind large Gold down trades like this. The fact is, the FED is the worst market manipulator of all the banks and yet nobody can stop it. It is motivated to punish those that dare feel safe in PMs. In fact all savers are getting punished today by the central bank leviathin. Even Big Gov't has little control over FED policy and has little insight into its market operations. The currency and credit bubbles represent the greatest threats to sustaining today's fiat currency system. Those Agents that can, WILL do whatever they have to do to protect the status quo. It's probably an opportunity to scoop up physical since this is most likely a paper sell-off with little actual physical hitting the market.
demand went down cause they can't deliver anymore
So because China is only going to buy all the gold mined in the world again this year, there is a selloff? Heh. No.
This is just more Anglo banker nonsense. The Chinese are not going to give our gold back. It is illegal to export it. They don't want to give it back. They are not going to sell it. They buy more as things get worse. It is gone. As a student of history and finance, I advise you take part in the looting of Western gold vaults.
This years buying in gold and silver 1.5 times last years in China, now Indian buying escalating, Russian buying escalating. The bb's are just trying to shake out the weak hands while buying what they are selling prior to the next leg higher.
Have your banker shills come out and make ridiculous statements having no substance, while at the same time the banks smash gold and silver lower to make you believe it must be true; look at the price action. More creating your reality, which means, back up the truck. It's also cot day.
In the game of paper scissors rock the winner is.... wait for it... Where are the scissors?
Gold:
Gold is getting smoked today. Worst day since December, when the taper was first announced.
Next price target 1000?
Latest news:
http://tersee.com/#!q=gold&t=text
I'll be there!
Great!!!!
Then I will buy MORE gold !!!!
Strange that all that Chinese gold buying didn't do anything to drive the price UP?!
Yes sure the real reason is anything but manipulation of course
The only thing weighing on the PM's are those who have destroyed the economy and believe that 'confidence' in the dollar is elevated as gold is repressed. Sadly for them, these morons are preparing their own demise as the world awakens to 'God's Money'....
Gold 700
Yea..they prolly stopped buying cuz they already have it all.
When was this article written?..before the smackdown?..seems like it came out very shortly after the drop.
Jmo
Seems like buying oportunity. One of the last perhaps.
Friday, July 8th, 2011 @ 15:30
"Buy silver coins or gold, so that you can buy what is necessary."
http://www.thewarningsecondcoming.com/eternal-father-will-prevent-new-wo...
Deja Vu
What is unbelievable about this article is that anyone is still reading the Wall Street Journal of Horsefuck. Wake up, folks. Do some reading. All markets are rigged. Do you not get that yet??? Ask yourself--if gold sold off from true market forces, where did it go??????? Who bought it below 1300??? Ask yourself -- if it's worthless, who dared then to buy it ????? Why is it not eight bucks per tonne???? Ask yourself -- does China prefer to keep trillions in US bonds instead of converting it to gold, oil fields, gold mines, timber fields, agricultural property ???? Wake up folks. Do some reading!!!!!! Grant Williams' take is available right here on ZH, as well as elsewhere. GATA has documented this bullshit baloney price-smashing for 15 years now. Did you not hear anything about "Flash Boys'??? Do you think gold sold off because the Chinese overnight reversed a decade of shedding US dollars???? This price smash shows nothing more than fear and panic by the US Fed. It is a big, honking warning that you are personally in deep shit. Wake up, folks and stop believing MSM's horsefuck.
I think the WSJ is very valuable, as is its sister-publication online "MarketWatch.com".
Whatever I read on these 2 web sites, I presume it to be FALSE. I then act accordingly - which is how I was able to retire at age 56.
No kidding !!!!
A "down to bone" strategy...but good one never the less :)
By the way, some folks never retire at 56, heck not even 66....it would be really boring with that much fun going around, don't you think?
I believe you!!! I use CNBC for the same. purpose. There hasn't been one word of truth (not counting Santelli) on CNBC in several years. If you want to know what to run away from, just go with whatever CNBC is shilling.
I heard an interview lately with David Collum (by Chris Martenson). He speculates that the USSA, instead of parting with its own stash of gold, drives the price down in order to buy the gold of those 'spooked' by the fall in order to make payment to China (in gold) for them to continue buying our treasuries. Although very disingenuous it could ring of truth if we still have our gold. That is the question. Audit the fed!
I somehow doubt that the big money in China that was handed out to their banks and land speculators was lining up at their local precious metal and jewelry shops. If anything, the falling yuan and domestic financial turbulance is the kind of thing that makes ordinary buyers want MOAR.
Bitcoin approaching $500 again, perhaps some chinese rotation going on.
I think "anything but dollar" is going on, if you ask the next guy.
And my Toyota Prius stalled in the driveway this morning, on fears of inclement weather in Iceland.
GMAFB !
Guys! it's easter holidays (baisakhi & vishu in india) sale!
Anyone who believes a word of what comes out of the WGC's arsehole is very likely a worshiper of the other world renowned truth tellers, Obunga, Kerry, Rice, Carney, Hillaroid, Reid and the Queen of Truth... "Polyp" Pelosi. Gold is a bet that these corrupt douchebags will burn our country down...
why is platinum / palladium falling too? More behind the scenes...
This would indicate the common trait they all share, i.e., monetary utility.
Besides, naked shorts are cheap insurance for the fed, especially when their script is produced for nothing, (electronic cypherage) and backed by even less than the naked short contracts they use to improve the appearance of their books.
jmo.