Chinese Stock Market Collapses 7.4% - Gold Demand Surges To Record

GoldCore's picture

Today’s AM LBMA Gold Price was USD 1,174.40, EUR 1,048.38 and GBP 745.89 per ounce.
Yesterday’s AM LBMA Gold Price was USD 1,174.60, EUR 1,052.51 and GBP 748.80 per ounce.

Gold fell $1.30 or 0.11 percent yesterday to $1,173.10 an ounce. Silver slipped $0.03 or 0.19 percent to $15.87 an ounce.

GOLD in USD - 5 Day

GOLD in USD – 5 Day

Gold in Singapore for immediate delivery inched up 0.3 percent at $1,177.20 an ounce near the end of the day,  while gold in Switzerland went a few dollars higher prior to selling pressure capped the gains and saw another correction.

Gold is lower in all major currencies this week. Today, gold is marginally higher over uncertainty with the Greek debt crisis as safe haven investors returned, equity markets dipped and Chinese stocks crashed.

Silver briefly hit a three month low at $15.50 an ounce. Palladium crashed to nearly a two-year low, seeing its largest one day fall since September, on demand concerns.

GOLD in GBP - 5 Day

GOLD in GBP – 5 Day

On a weekly basis, palladium is down 4.7%, its biggest weekly loss since mid January and its seventh in a row. Platinum’s actually posted the smallest weekly drop, of just 1%. 

Asian and European stocks have fallen sharply. The Chinese stock market crashed 7.4% overnight. They have had the biggest two-week loss in more than 18 years and are close to entering a bear market after extending losses from their June 12 peak to 19 percent in less than three weeks.

GOLD in EUR - 5 Day

GOLD in EUR – 5 Day

European stocks are down 1%, with investors getting more and more nervous about the complete lack of progress and increasingly entrenched positions in the Greek debt crisis negotiations. We are heading into crunch talks at the weekend and last ditch, ‘make or break’ discussions by euro zone finance ministers will resume on Saturday,

Financial authorities and the Troika have prepared a “Plan B” to protect the euro zone from financial market turmoil. Creditors are trying to force Greece to repay the International Monetary Fund 1.6 billion euros ($1.79 billion) on Tuesday.

Some European bonds also saw losses. Italy’s 10-year bond yield rose four basis points to 2.13 percent, trimming its drop for the week to 15 basis points. The yield on equivalent-maturity Spanish debt increased two basis points to 2.09 percent.

SPDR Gold Shares, the world’s largest gold backed ETF climbed 6.9 metric tonnes yesterday, its biggest one-day increase since February 2nd. That has brought the fund’s weekly inflow to 11.3 tonnes for far, also the biggest since the first week of February

SILVER IN USD - 5 Days

SILVER IN USD – 5 Days

The London Bullion Market Association (LBMA) said on Friday it had granted the Tokyo Commodity Exchange (TOCOM) a licence to use its Good Delivery List as part of TOCOM’s accreditation procedures. The agreement is effective from Friday, the LBMA said, adding that it has had similar deals in place with NYSE Liffe and NYMEX/CME for a number of years. More

Shanghai Gold Exchange volume climbed to a record today as prices declined incentivizing value driven Chinese buyers as Chinese stocks crashed 7.4%.

Volumes for bullion (99.99% purity) traded on SGE rise to a record 48.325m grams from 36.356m a day earlier, according to data compiled by Bloomberg. This exceeds the previous record of 45.717m on March 26.

In late morning European trading, gold is down 0.04 percent at $1,173.95 an ounce. Silver is off 0.47 percent at $15.81 an ounce and platinum is also down 0.36 percent at $1,077.49 an ounce.

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Kina's picture

If China want to continue to accumulate gold I don't think they will be forcing the price up in competition with the LBMA.

However if China thinks an increased price of gold gives them geopolitical or economic advantage over others...

ramgold2206's picture

Ok before you all kick the shit out of me with down arrows I'llI admit I am pushing this thing a little... but whats wrong with that... I just want to let people on ZH know there is serious money to be made in Karatbars .. its not MLM BTW - its simple referral commissions that all.. AND its Physical GOLD .. not some paper on Comex.. which we all know is the only system more rigged than fractional reserve banking.

The product is superb and that is the only reason im involved. If you read and comment on ZH your intelligent - all I'm suggesting is that you use that intelligence and earn some €€ and gold from it.. What's the worst can happen.. you have a stack of gold bullion at the end of it!!!

The reason I'm promoting in on ZH is because you guys are economists/accountants/professional traders and understand the fiat currency issue. So why don't we band together and use a system developed by Karatbars, make some money and perhaps help a few people get some bullion.. it may be the only thing they have when the ticker reached zero. 

 

Look at the end of the day all I know is that it works and works really well at that. You tell a few people about karatbars, they purchase some bullion you earn commissions in €, you acquire some bullion with that € and spend some of the € on the day to day shit..

 

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crazytechnician's picture

"because you guys are economists/accountants/professional traders"

I think you will find most of the bloggers on here are tin foil hat wearing nut jobs , half of them have been waiting down in their damp bunkers , starving themselfs of sunlight . living off of stale 30 years old prepper food with a tonne of silver , guns and ammo all waiting for armageddon. Sorry but it just aint gonna happen and bitcoin is gonna be the next global reserve currency not gold or lead you morons.

Alive or Just Breathing's picture

"I think you will find most of the bloggers on here are tin foil hat wearing nut jobs , half of them have been waiting down in their damp bunkers , starving themselfs of sunlight . living off of stale 30 years old prepper food with a tonne of silver , guns and ammo all waiting for armageddon"

Now that shit was funny.

 

"bitcoin is gonna be the next global reserve currency not gold or lead you morons."

Then you went and fucked up your whole argument. Bitcoin? The Big Dawgs ain't going to let you bring your "farmed in my momma's basement" digital currency to the plate buddy. No..... Everyone gets fucked in this game.

 

Long KY.

 

crazytechnician's picture

In that case you are gonna need the KY.

Call me back when bitcoin hits 65k....

Alive or Just Breathing's picture

65k what? Dollars? Yen? Toilet Paper?

The reference is meaningless. At that point the dollar will be just that, toilet paper.

crazytechnician's picture

" At that point the dollar will be just that, toilet paper."

You still don't get it do you, muppet.

The dollar, is already toilet paper , the rest,  is just a case of timing , and semantics ,

FFS. If the dollar had any value whatsoever there would be no such thing as QE...

teutonicate's picture
teutonicate (not verified) crazytechnician Jun 27, 2015 8:07 AM

And you think we have tin-foil hats?!

jomama's picture

down 7% is hardly a collapse.

LawsofPhysics's picture

...and yet the price in dollars does... ...nothing...

fucking YAWN...

teutonicate's picture
teutonicate (not verified) LawsofPhysics Jun 27, 2015 9:04 AM

True, but let's consider what the prices of the dollar and gold as quoted in the press really mean.

If you are referring to the strength of the dollar index, which I don't think you are, then one junk fiat priced in terms of a trade weighted-basket of other junk fiats is meaningless as an argument.

If you are referring to the weakness of gold priced in dollars, which I think you are, we all know that PM price suppression on the COMEX by CB's will remain in high gear up until the time when people start wanting to take delivery - at which point the shortage of physical will make this a very expensive proposition.

When bond prices held up, this was easier for the CB's to do, once bonds (and the CB's balance sheets) start collapsing this will be more and more difficult.

If demand continues to increase for PM's in China and other countries, physical pricing will have to rise - at least in those markets.  At some point arbitrage between physical on those markets and physical which can be demanded by taking delivery on COMEX will need to close, and paper prices wll need to converge toward physical prices.

Most people who argue for owning physical, which is the preferred from a risk perspective (although it is much more transactionally expensive), do so because of the counterparty risk in the paper markets.  They presume that there will be a dramatic and near instantaneous "short squeeze" event that will result in a collapse in COMEX.  The entire free float on gold and silver in the COMEX is a rounding error compared to the balance sheets of the CB's.  They can continue to cover their losses by closing out shorts at higher prices - which will give the paper longs and exit, or in the alternative the option to take physical delivery at market prices.  I think the paper market scare is, to some extent a promotional tactic for company that sell physical at high mark-ups.

The reason that bond prices are declining, is not because (as the media would like us to believe) investors are anticipating a Fed rate hike, it’s because investors are beginning to realize the fiat currencies that these bonds are denominated are all depreciating in real terms.  Once this process starts, it is going to be very difficult to reverse - since there will be no fiat to hide in.

pokerbloker's picture

Bwy de fwucking dwip, blitches!

dontgoforit's picture

A year from now we will be saying....how did I not see this coming?

Albertarocks's picture

It's hard to say who is responsible for the title of this article, ZH or Goldcore.  But in either case. "surges" is not the same thing as "drops to".  Please get your act together.

PhilofOz's picture

Oh yeah, then the headline would make sense ....

"Gold Demand Drops To Record"   
Squid-puppets a-go-go's picture

well if gold cant rise on a chinese bear market then the comex slammers have still got the scheme totally nailed

 

KnuckleDragger-X's picture

Your confusing paper for shiny. Singapore is selling physical for delivery, COMEX, not so much......

RaceToTheBottom's picture

Has Singapore price separated from COMEX?  
Real question, not slamming? 

Is there any variability of the data?

KnuckleDragger-X's picture

Who is buying and why tops the list. Speculation vs investing.......

847328_3527's picture
China announces they will be setting new gold price by end of year

 

On June 25, a representative from the Shanghai Gold Exchange announced that they are planning on establishing a new physical gold price mechanism by the end of the year that will compete with London and the U.S. Comex.

 

http://www.examiner.com/article/china-announces-they-will-be-setting-new...

 

It would be nice if they divorced the price of physical from the price of paper, yes.

 

83_vf_1100_c's picture

Nice, yes but I suspect they are stretched out just as hard as the West and are no more likely to try a Gold satandard.

LithiumWarsWAKEUP's picture

Maybe peg it to gunpowder and lead.