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China Increases Gold Holdings By 57% "In One Month" In First Official Update Since 2009

Tyler Durden's picture




 

Back in April we wrote that "The Mystery Of China's Gold Holdings Is Coming To An End" as a result of China willingness to add the Yuan to the IMF's SDR currency basket which would require the disclosure of China's gold holding ahead of an IMF meeting on SDR composition which may be held in October.

By way of background, the reason why everyone has been so focused on Chinese official gold holdings is that there has been no official update to the gold inventory of the world's biggest nation, which have been fixed at 33.89 million oz since April 2009, a little over 1000 tons. In other words, the PBOC's gold inventory has been "unchanged" for over 6 years which is in stark contrast to the ravenous buying of physical gold China has been engaging in for the past 5 years.

As we further noted in April, "with China disclosing so little about its hoard, finding out how much the central bank has in its vaults is of increasing interest to traders. Confirmation of bigger holdings would signal the importance of the metal as a reserve asset and boost market sentiment, TD Securities’ Melek said. At a time when prices are languishing, the buying could give support, said Suki Cooper, director of commodities at Barclays Plc in New York."

In a rare comment on gold, Yi Gang, the central bank’s deputy governor, said in March 2013 that the country could only invest as much as 2 percent of its foreign-exchange holdings in gold because the market was too small. The press office of the People’s Bank of China in Beijing didn’t respond to a fax seeking comment sent on April 14.

Well, the long awaited moment has finally arrived and this morning, after a 6 year delay when, China finally admitted that it had been misrepresenting its gold holdings for a very long time, when it announced that its gold holdings had increased from 38.89 million to 53.31 million troy ounces, a 57% increase "in one month."

 

The amounts to a new grand total of 1658 metric tons, an increase of 604 tons from the 1054 reported last in 2009 and which according to the PBOC was also the May 2015 total.

What is surprising about this release are three things:

First, while we welcome some long overdue "transparency", the number is well below official expectations. This is what Bloomberg said previously: "The People’s Bank of China may have tripled holdings of bullion since it last updated them in April 2009, to 3,510 metric tons, says Bloomberg Intelligence, based on trade data, domestic output and China Gold Association figures. A stockpile that big would be second only to the 8,133.5 tons in the U.S."

Second, China has finally admitted that its official gold numbers were fabricated (alongside all other official data released from the communist country) as it is impossible the PBOC could have bought 600 tons of gold in the open market in June when the price of the yellow metal actually dropped by 2%.

Third, and perhaps most important, is the reasoning behind the increase. While in April it was expected that China will be focused on SDR acceptance of the Yuan, that was subsequently refuted when it became clear that the IMF has no intention of making such a decision any time soon.  So why make the disclosure?

  • PBOC SAYS GOLD RESERVE INCREASE AIMS TO ENSURE SECURITY

And from the PBOC:

Gold as a special asset, with multiple attributes financial and commodities, together with other assets to help regulate and optimize the overall risk-return characteristics of international reserves portfolio. From the perspective of long-term and strategic perspective, if necessary, dynamically adjusted international reserves portfolio allocation, safety, liquidity and increasing the value of international reserve assets.

In other words, China had to wait until its stock market was crashing to present the "systemic stability" bazooka: gold.

Because in revealing a surge in its gold holdings, the PBOC is hoping to finally provide that final missing link that will boost investor sentiment, and get people buying stocks all over again.

And now that the seal has been finally broken after so many years, and since today's update indicates that Chinese gold numbers are clearly goal-seeked with a specific policy purpose - to boost confidence - we await for the PBOC to start leaking incremental gold holding data every month (and especially in months when the market crashes) which will bring us ever closer to what China's true gold holdings are.

* * *

The SAFE's full accompanying Q&A statement with reporters on its latest reserves is below (google translated):

People's Bank of China, the State Administration of Foreign Exchange, the official answered reporters' questions on China's total foreign debts, foreign exchange reserves, gold reserves, etc.

 To further enhance the quality and transparency of foreign data, fully reflects the outcome of the internationalization of RMB recently, People's Bank of China, the State Administration of Foreign Exchange SDDS according to IMF data (SDDS) announced the country's foreign exchange reserves, gold reserves, and other data, corresponding adjustment of the caliber of external debt data, published a full-bore renminbi debt, including the debt included. People's Bank of China, the State Administration of Foreign Exchange person in charge of related issues answered reporters' questions.

First, what SDDS is?

A: SDDS namely IMF (IMF) Special Data Dissemination Standard of, is an international standard on countries' economic and financial statistics published by IMF enacted in 1996, the English name Special Data Dissemination Standard, referred to as the SDDS.

In order to improve the transparency of the Member States of macroeconomic statistics, IMF has developed GDDS (GDDS) and Special Data Dissemination Standard (SDDS) two sets of data dissemination standards. Both the overall framework basically the same, but in actuality, SDDS for data coverage, publication frequency, timeliness released, data quality, and other aspects of the public can get more demanding. SDDS the countries need to adopt in accordance with the requirements of the standard, published data of the real economy, fiscal, monetary, foreign and socio-demographic and other five sectors.

Currently, there are 73 economies adopted SDDS, including all developed economies, as well as Russia, India, Brazil, South Africa and other major emerging market countries. GDDS country had been announced by macroeconomic data.

Second, why should the adoption of SDDS?

A: With the deepening of economic globalization, improve data quality, make up the data gaps and enhance data comparability and enhance data transparency become a consensus. China's proactive response and internationally accepted data standards initiative, in November 2014, the Chairman Xi Jinping at the G20 summit in Brisbane officially announced that China will adopt the IMF Special Data Dissemination Standard (SDDS). After a series of technical preparations, the current standard conditions according to SDDS data published ripe.

Adopted SDDS, in line with our needs further reform and expand opening-up, help to improve the transparency of macroeconomic statistics, reliability and international comparability, promote the improvement of statistical methods; to further find out the macroeconomic real situation, as the country's macroeconomic provide the basis for decision-making to prevent and defuse financial risks; conducive to China's active participation in global economic cooperation, enhance the international community and public confidence in the domestic economy.

Three , according to the SDDS reserves data released specifically what?

A: The foreign exchange reserves, according to data released SDDS carried out, including the "official reserve assets" and "International Reserves and Foreign Currency Liquidity Data Template" in two parts. "Official Reserve Assets" includes the foreign exchange reserves, IMF reserve positions and special drawing rights (SDR), gold, other reserve assets of five projects, including "reserves" This project corresponds to the size of our country's foreign exchange reserves in the past announced ; "International Reserves and Foreign Currency Liquidity Data Template" includes four tables of official reserve assets and other foreign currency assets, the predetermined short-term net outflow of foreign currency assets and foreign currency assets or net outflow of short-term, memos.

On the publishing frequency, two pieces of data are released monthly, including "official reserve assets" not later than the seventh day of general release of the data at the beginning of each month on month, "International Reserves and Foreign Currency Liquidity Data Template" general release in the end of each month data. Since this is the first release, we have also released two pieces of data, to facilitate your control, according to the corresponding time in the future will be published separately requirements.

On statistical methods, in full accordance with IMF to carry out uniform standards relevant statistics.

Fourth, the comparative size of foreign exchange reserves in the past released the recently released data which points?

A: There are three main aspects:

  • (1) This announcement is fully consistent with the country's reserves of foreign exchange reserves in the past announced the size of caliber. The size of our country's foreign exchange reserves in the past has been published in accordance with the relevant methods and standards of statistics in SDDS. As of the end of June 2015, China's foreign exchange reserves of $ 3.69 trillion.
  • (2) new released other foreign currency assets. As of the end of June 2015, the Bank of other foreign currency assets of $ 232.9 billion.
  • (3) adjusted by the size of its gold reserves. As of the end of June 2015, the scale of China's gold reserves to 53.32 million ounces (equivalent to 1,658 tons).

Five , gold reserves according to data released this time, compared with the scale of China's gold reserves since the end of April 2009 increased by 604 tons. Why should our holdings of gold reserves?

A: The gold reserve has been an important element of international reserve diversification countries constituted the majority of the central bank's international reserves have gold, country as well. Gold as a special asset, with multiple attributes financial and commodities, together with other assets to help regulate and optimize the overall risk-return characteristics of international reserves portfolio. From the perspective of long-term and strategic perspective, if necessary, dynamically adjusted international reserves portfolio allocation, safety, liquidity and increasing the value of international reserve assets.

Six , in recent years, international gold prices volatile, the current round of holdings of gold reserves is at what time what channel from holdings? Whether the future will continue to overweight?

A: With the prices of other commodities and financial assets, the international gold prices also ebb. Over the past few years, gold prices continued to rise to a record high, the gradual decline. Our asset-based valuation and price changes for gold analysis, under the premise of impact and influence in the right markets, at home and abroad through a variety of channels, this part of the gradual accumulation of gold reserves. Overweight channels including domestic miscellaneous gold purification, production Shouzhu, domestic and foreign market transactions and other means.

Gold has a special risk-return characteristics, at a particular time is a good investment products. But the capacity of the gold market is small compared with the scale of China's foreign exchange reserves, if a large number of short-term foreign exchange reserves to buy gold, easily affect the market. At present, China has become the world's largest gold producer, is also a big consumer of gold, "hidden gold to the people," the situation has been happening. The need to continue and consider the future of private investment demand and international reserve asset allocation, flexible operation.

 

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Fri, 07/17/2015 - 06:43 | 6322764 Haus-Targaryen
Haus-Targaryen's picture

They left the 1 off the front of that number. 

Fri, 07/17/2015 - 06:55 | 6322783 Supernova Born
Supernova Born's picture

What are they trying to achieve with this false number?

The question to be asked.

Fri, 07/17/2015 - 06:56 | 6322790 Haus-Targaryen
Haus-Targaryen's picture

Everyone knows they are amassing huge amounts of gold.  Their old number was clearly garbage, and everyone knew it.  

They had to raise it just enough to placate people.  Guarantee you their actual holdings are still higher than reported today.  

Fri, 07/17/2015 - 06:59 | 6322795 Supernova Born
Supernova Born's picture

All warfare is based upon deception

-Sun Tzu

All deception is negated by my terminal

-Bloomberg

Fri, 07/17/2015 - 07:05 | 6322804 VinceFostersGhost
VinceFostersGhost's picture

 

 

Looks like China owns our asses.

 

Supposedly the US has some gold...but I've never seen it. Neither has Germany.

Fri, 07/17/2015 - 07:11 | 6322814 Kotzbomber747
Kotzbomber747's picture

My big problem with this: how much merit do ANY numbers or percentages coming out of China have?

Doesn't their economy also grow with 7% p.a.? Hmmmm...

Any conspiracy thinker who has doubts about the U.S. gold reserves in Fort Knox should have a field day with any official statistic coming out of China with regard to their gold reserves.

Fri, 07/17/2015 - 07:11 | 6322817 Pladizow
Pladizow's picture

Why release info now at support of $1,140/oz?

Fri, 07/17/2015 - 07:14 | 6322823 froze25
froze25's picture

Anyone else notice that all the 10oz bars of silver are on a delayed shippment from SD Bullion?  Physical stocks running low?  Has anyone seen if the other dealers are showing the same type of delay?

Fri, 07/17/2015 - 07:20 | 6322833 VinceFostersGhost
VinceFostersGhost's picture

 

 

I've got some scraps I can sell you...but anything of real quantity.....no can do.

Fri, 07/17/2015 - 07:32 | 6322872 papaswamp
papaswamp's picture

Scrap is where its at!

Fri, 07/17/2015 - 08:13 | 6322972 Manthong
Manthong's picture

VFG.. Germany does not want to see it..

Oops, I mean Merkel and Crew.   the German people will have their way with DE .gov when  they get over the beer binge and understand what the EU has been done to them.

 

Fri, 07/17/2015 - 08:40 | 6323070 Save_America1st
Save_America1st's picture

and the paper PM's are getting monkey-hammered now right on queue!  Time for another roll of silver Buffs!

Fri, 07/17/2015 - 08:50 | 6323102 J S Bach
J S Bach's picture

"China Increases Gold Holdings By 57% "

 

Yes... and I'm sure their tungsten holdings increased by at least 200% in that same time!

Fri, 07/17/2015 - 08:59 | 6323135 Save_America1st
Save_America1st's picture

no, they've got the real deal.  Remember that all gold that has gone to China has first be re-melted down in Switzerland and re-cast into Chinese Kilo bars of five 9's purity. 

China hasn't been fuckin' around.

And conservative estimates are that they've now stock-piled at least 10,000 tons or even upwards close to 30,000 tons of gold. 

Fri, 07/17/2015 - 09:00 | 6323172 BaBaBouy
BaBaBouy's picture

Chinee Report Only GOLD 604 Tonne Increase Over 6 Years ???

==> They Are SUPER SENSITIVE To The Markets And NOT TO INCREASE THE SPOT POG, So As They Can Keep Accumulating.
Imagine If They Had Reported The True 3250 Tonne Increase???

IMO They Will Reep Reporting Large Monthly Increases Until They Reach The Huge Number Of GOLD They Actually Have Already!

Fri, 07/17/2015 - 09:20 | 6323256 PrayingMantis
PrayingMantis's picture

 

 

... the point of the whole exercise is, (regardless of what China's true gold holdings figure was), China is telling the world the Renminbi (Yuan) is backed by solid physical gold with a huge manufacturing base (read: US companies that moved their manufacturing base in China ... like AAPL, etc.)  ...

       ... whereas the US dollar (Petrodollar) is backed by "paper" gold, ObamaScare, $70Trillion derivatives, $18Trillion debt, MSM propaganda, BHOliesandpromises ... etc.

 

       ... China is also telling the USSA that China's economy is robust and stable so that they could export more in order for chinese-hating redneck shoppers at Walmart could stuff their gills and their Made in China recycled bags with Made in China goodies and trinkets while ignoring their Made in China labels and opt for the 95% difference in price compared to the flag-waving-stars-and-stripes-made-in-the-good-ol-usa higher-priced trinket ...

           ... and China is also reassuring the USSA that those "fake" Chinese electronics gear the USSA bought and used in USSA military would remain dirt-cheap to encourage the smart-monied military brasses to buy more of the "counterfeit" stuff then try to hide them from military audit or CONgress   >>> "‘Made in China’: U.S. Military Finding Fake Chinese Electronics in Gear At Alarming Rate" >>> http://www.theblaze.com/stories/2011/11/09/made-in-china-u-s-military-finding-fake-chinese-electronics-in-gear-at-alarming-rate/  ...

 

 

Fri, 07/17/2015 - 10:21 | 6323432 Pinto Currency
Pinto Currency's picture

 

 

Over the past 8 months, Chinese wholesale gold consumption has averaged ~ 50 tonnes per week as measured in gold bar withdrawals from the Shanghai Gold Exchange vaults:

https://www.bullionstar.com/blogs/koos-jansen/strong-withdrawals-mainland-hong-kong-gold-vaults/

The Chinese government buys directly through Shanghai and does not disclose weekly purchases.

Global weekly mine production is 55 tonnes per week.

From 2008 to today there have been ~ 9,000 tonnes withdrawn from SGE vaults.

Fri, 07/17/2015 - 10:25 | 6323562 Manthong
Manthong's picture

“ravenous buying of physical gold”

“Then this ebony bird beguiling my sad fancy into smiling,
By the grave and stern decorum of the countenance it wore,
`Though thy crest be shorn and shaven, thou,' I said, `art sure no craven.
Ghastly grim and ancient raven wandering from the nightly shore -
Tell me what thy lordly name is on the Night's Plutonian shore!'
Quoth the raven, `Nevermore.':

-Edgar Allan Poe

if they have less than 10,000 tons, I will be beguiled

Fri, 07/17/2015 - 11:10 | 6323749 whotookmyalias
whotookmyalias's picture

Ah yes, the Chinese government.  A very trustworthy body indeed.  Let's all believe them and rush towards a gold backed currency that has no provision for conversion.

 

I hate to break it to you, but you can't really see the great wall from space either.

Fri, 07/17/2015 - 11:40 | 6323763 Manthong
Manthong's picture

Not exactly correct if you have the right optics....

http://www.nasa.gov/vision/space/workinginspace/great_wall.html

..but you can see the pollution cloud over Peking..

.. and gold is a reserve that will be hard to value properly when the synthetic structures evaporate.

Fri, 07/17/2015 - 11:55 | 6323940 whotookmyalias
whotookmyalias's picture

The urban legend was that the Apollo astronauts could see it when circling the earth with the unaided eye.  That is not true.  Of course with the right optics.

 

Fri, 07/17/2015 - 13:54 | 6324379 Gaius Frakkin' ...
Gaius Frakkin' Baltar's picture

Like all good propaganda, what you say is half-right, so it's believable, but the wrong conclusion is drawn. Yes, the Chinese government can't be trusted to accurately report gold holdings, but the lie is to suppress the price of gold while they continue to accumulate.

Fri, 07/17/2015 - 14:49 | 6324564 MonetaryApostate
MonetaryApostate's picture

I hear dragons hoard gold, but what is gold really worth when the elite plan on collapse the whole shebang?

Yes, 7 years into this depression and nobody gets the economic games the wealthy are playing here, the trickle down economics are working beautifully, and the wealthy packed up shop and went back home to London...

BUT, it will be the London Bankers falling down this time!
http://galeinnes.blogspot.com/2015/07/social-herds-economic-turds.html

Fri, 07/17/2015 - 19:37 | 6325608 bigkahuna
bigkahuna's picture

barbarous relic

Fri, 07/17/2015 - 14:19 | 6324486 summerof71
summerof71's picture

Of course the market tanked today too...

Fri, 07/17/2015 - 20:06 | 6325678 Squid-puppets a...
Squid-puppets a-go-go's picture

yer, methinks they havent announced enough of an incerease to reassure their domestic market at all. And its not enough to compell the IMF to give them a louder voice at the table.

So unless its about a planned steady release of updates each month, i struggle to see the utility of the move

Fri, 07/17/2015 - 09:01 | 6323181 idea_hamster
idea_hamster's picture

Did someone say they asked for comment via fax?!

Barbarous relic, indeed!

Fri, 07/17/2015 - 09:08 | 6323154 BaBaBouy
BaBaBouy's picture

Ahhh... Who To Trust???

COMEX And Their Paper GOLD Papers.

NYC FED And Their Underground GOLD Stocks Unaudited.

Fort Knox GOLD Storage Unauditesd.

Chinee And Their LOW GOLD Numbers Unaudited.

Ahhh... Who To Trust???

Fri, 07/17/2015 - 07:34 | 6322876 A82EBA
A82EBA's picture

APMEX offers seven brands of 10 oz bars with no mention of delay

Fri, 07/17/2015 - 07:43 | 6322881 Supernova Born
Supernova Born's picture

Premium increases have exceeded spot price decreases on silver eagles recently.

Fri, 07/17/2015 - 07:54 | 6322917 A82EBA
A82EBA's picture

Yes, a lot.  Great point.

On May 29 I bought ten 1oz rounds at spot price $16.70 and the check I wrote was $107.

Today, at spot $15 (10% lower) the total is $177 (65% higher)

Fri, 07/17/2015 - 07:59 | 6322921 Supernova Born
Supernova Born's picture

Whoa. Thanks for the numbers.

Fri, 07/17/2015 - 08:03 | 6322939 Manthong
Manthong's picture

Oh yeah..

Like they did not amass more than the fictional 8,000 tons Au the US supposedly has.

I smell some reality coming.

But of course, the US .mil Asia pivot will counter the Chinese tiger.

LOLOLOLOLOO

Fri, 07/17/2015 - 09:13 | 6323225 Save_America1st
Save_America1st's picture

just picked up 20 more oz's of silver Buffaloes from SDBullion for 342 total which included shipping and CC charge of 3%, and 1.29 over spot.  No mention of delay. 

Fri, 07/17/2015 - 11:22 | 6323804 Manthong
Manthong's picture

Try placing an order for couple 28,000 or so.

Size matters.. ask my girlfriend.

Fri, 07/17/2015 - 20:19 | 6325707 TheReplacement
TheReplacement's picture

I asked.  She didn't really like something this thick.

Sorry.

Fri, 07/17/2015 - 08:26 | 6323020 deadelephant
deadelephant's picture

At a spot price of $16.70 you bought rounds for $10.70/oz?  The big question I have is what type of weapon you used in that robbery.  Would love to get the same deal.

Fri, 07/17/2015 - 09:14 | 6323141 A82EBA
A82EBA's picture

Good eye, my mistake, qty was 5 not 10

spot down 10%

total down 8%

 

thank for catching that

 

edit: just bought a 10 oz for $170.80 out the door

 

Fri, 07/17/2015 - 19:20 | 6325533 Supernova Born
Supernova Born's picture

APMEX must read ZH as premiums seem to have very recently dropped.

 

 

 

 

Fri, 07/17/2015 - 10:57 | 6323682 Professor Know ...
Professor Know Nothing's picture

On Monday APMEX price above spot for 10 oz silver bars was 7.5%. Now 11.4%. For 100 oz silver bars the price was 5.7% above spot, now 7.5%. Break paper market, break!

Fri, 07/17/2015 - 11:18 | 6323787 phoggy
phoggy's picture

I always use a company out of Kansas called SilverSaver. www.silversaver.com  Been using them since 2012, they never have any issues with inventory.  They ship anywhere in US and Canada.

They also have an automated system that allows people to dollar cost average into silver/gold by setting a schedule.  This is good for people that just want to save on a schedule.  For example, I do $50 every Tuesday.  It automatically is taken from my bank account and $50 of silver is deposited into my account.  Then when I want to take delivery, I go into my account and request delivery of whatever specific item(s) I want.

If the market price drops and I want to load up, then I can do a onetime purchase or wire money in.

Easiest and most convenient way to buy gold/silver that I found.

 

Fri, 07/17/2015 - 07:36 | 6322877 Fukushima Fricassee
Fukushima Fricassee's picture

Gainsville coins has been "extremly busy" show room reflects very low stocks.

 

US Our tax dollars are wasted selling paper gold.

Fri, 07/17/2015 - 08:39 | 6323069 indygo55
indygo55's picture

Delays are everywhere. I had a delay on a 100 oz bar of a few days but I got it. My local coin store is OUT. No eagles or maples or bars of any kind at all and premiums are $5.00 each when they come in upon special order. No dates of delivery are available. 

Fri, 07/17/2015 - 10:07 | 6323402 Bunghole
Bunghole's picture

Silvertowne also has the same warning

Due to high demand for silver, shipping times may be longer than usual.

Fri, 07/17/2015 - 10:27 | 6323568 e_goldstein
e_goldstein's picture

My local dealer got 20 10 oz silver bars in on Wednesday,

I went in on Thursday to buy a couple and they were gone.

Fri, 07/17/2015 - 12:04 | 6323968 lunaticfringe
lunaticfringe's picture

Don't burn your powder just yet. We still have 100 bucks worth of gold downside left and maybe hi 12's in silver. Wait another month and then buy more. I have been comfortably sitting on the sidelines waiting for this current carnage and 4.5 year bear market to come to an end.

 

Fri, 07/17/2015 - 13:24 | 6324271 83_vf_1100_c
83_vf_1100_c's picture

Provident took 9 days on my delivery which showed up yesterday. This included time burnt sending an M.O. and all the items had notes stating a delay which is unusual. Not bad.

Fri, 07/17/2015 - 13:51 | 6324380 lunaticfringe
lunaticfringe's picture

I buy almost all of my PM's at Provident. I use personal check and by the time they get done holding it and clearing it- it takes right at 3 weeks.

Fri, 07/17/2015 - 08:21 | 6323007 Crash N. Burn
Crash N. Burn's picture

"Supposedly the US has some gold...but I've never seen it. Neither has Germany."

 

 That would be the famous (infamous) "vampire" gold:

"during the one year in which the government of Germany sought to have a small portion of its gold returned to it in an open-and-official manner, stretched out over several years, it got nothing. However, when the government of the Netherlands made a request for the “repatriation” of a similar portion of its own gold “secretly”; it received all of that “gold”, apparently over a matter of mere days/weeks.

Then we had our second, bizarre twist to this increasingly absurd “gold repatriation” melodrama. Germany’s government gave-up any attempts to get its gold returned to it publicly from the United States (i.e. under the light of day); and now, supposedly, Germany is also having its gold “secretly repatriated” (under dark of night). And now, suddenly, it’s having no problem getting its gold returned to it.

Just as with the Netherlands; it was able to get more gold delivered “secretly”, over a period of days/weeks than it could get publicly (and openly), over a period of one full year. What can we conclude about this surreal “gold repatriation” process?

Apparently, the “gold reserves” of the United States of America, world’s only superpower, have acquired what can only be termed a “vampiric” quality: when exposed to direct sunlight, or even a glance from anyone other than a banker or politician; the gold evaporates. Of course many previous commentaries have identified the bankers and politicians, themselves, as “vampires”.

The gold reserves of the United States are never exposed to direct sunlight. The only “people” who even claim to have memory of seeing any of this “gold” are (other) vampires. But the U.S.’s reserve of Vampire Gold is merely the first layer of fraud in the systemic gold-fraud of the U.S. government (and the bankers lurking behind it).

Why does the U.S. government consider it vitally important that its “gold” never be exposed to direct sunlight, where it could be publicly counted and inspected, to ensure that any/all bars were filled with gold (not tungsten)? Because as a part of any official audit; among the data which would be collected/released would be the serial numbers of those bars.

Here lies the second dilemma for the U.S. government regarding its mythical gold. Even most Skeptics believe that the U.S. has some (real) gold still stored in its vaults. The question never answered (by an official audit) is who own those bars, or (more to the point) how many owners would claim to have title to each bar?"

The U.S.’s Vampire Gold: It Evaporates When Exposed To Sunlight
Fri, 07/17/2015 - 11:48 | 6323912 Manthong
Manthong's picture

Netherlands.. gold returned... MH-17 report..

Nothing to see here..  move along.

Fri, 07/17/2015 - 15:53 | 6324838 Crash N. Burn
Crash N. Burn's picture

"Netherlands.. gold returned... MH-17 report.."

Imteresting, the Netherlands termed it secret:

"it is telling that the Dutch announced on Friday that they have just secretly repatriated 122 tonnes of their sovereign gold reserves from New York back to Amsterdam.

The gold, worth $5 billion at today's prices, represents 20% of the Netherlands total reserves. It now keeps 31% of its reserves in Amsterdam. Another 31% is believed to be in New York, with the remainder spread between Ottawa and London – the same locations where the bulk of Swiss gold is purported to be stored...

..Questions are already being asked about how the Dutch were able to repatriate such a sizeable volume of gold when Germany's request was brushed aside. It may be that by taking a discreet approach the Dutch allowed the Federal Reserve room to manoeuvre – allowing them to harvest the metal from the open market."

122 Tonnes of Gold Secretly Repatriated to Netherlands

 

Fri, 07/17/2015 - 20:23 | 6325715 TheReplacement
TheReplacement's picture

Happy MH-17 anniversary.  Sigh.

Fri, 07/17/2015 - 09:14 | 6323227 VinceFostersGhost
VinceFostersGhost's picture

 

 

Heh heh.....good times.

Fri, 07/17/2015 - 08:52 | 6323125 Closet Boy
Closet Boy's picture

What small amounts of gold bars leaving Ft. Knox are being discovered with tungsten filling.  D, NL, and other depositors are being denied inventory. Personel on base have never seen the gold, as well.  Strange?

 

Goldfinger needs to straighten out this mess. 

Fri, 07/17/2015 - 11:01 | 6323702 Crash N. Burn
Crash N. Burn's picture

"Personel on base have never seen the gold, as well. Strange? Goldfinger needs to straighten out this mess."

Last seen prior to FDR's little gold stunt, now they do "Clouseau style" audits:

"The most-recent of these “audits” typifies the farcical nature of this bankers’ joke. The U.S. Treasury Department’s Inspector General went to “audit the gold” at Fort Knox. He arrived at the vault, saw that the seal on the vault was still in place, and concluded it was unnecessary to go to all the bother of counting the gold (let alone inspecting the purity of the bars). Apparently the thought that “someone” (i.e. banker or politician) could have broken the seal, and then had it replaced, never entered into the thoughts of the intrepid Inspector. As quipped at the time; it was the world’s first “faith-based audit”. He believed that everything was in place, so there was no need to go to all the time/effort/bother of an actual (legitimate) audit. Of course if the Inspector General was so perturbed at the thought of “breaking the seal” on the front of the vault, he always had another option. He could have entered through the escape tunnel, at the back of the vault."

 

 Gets even better, dog ate their homework:

"This was the status of the mythical Fort Knox gold: 1,000’s of tons of gold which no one ever sees, decade after decade, and which the bankers and politicians have stopped even pretending to “audit”. Then (as reported at Jim Sinclair’s site) an inquisitive journalist from Goldseek.com made a request under the Freedom of Information Act to see the (old) private audits conducted by the bankers/politicians, and a funny thing happened. The politicians are claiming that these audits have been “lost”.

Are there any “audits” of Fort Knox gold still in existence, at all? Yes, but those audits only claim to “prove” the existence of 3% of this supposed gold. The audits which supposedly “proved” the existence of the other 97% of this gold are gone." - both quotes from the article in my first post

Fri, 07/17/2015 - 13:27 | 6324287 quasimodo
quasimodo's picture

So has anyone seen China's gold? If not, then it's no better than Ft Knox.........nothing but a friggin number on paper.

Fri, 07/17/2015 - 15:55 | 6324855 Rancho Texican
Rancho Texican's picture

...and neither has/will Texas.

Fri, 07/17/2015 - 07:08 | 6322812 Max Steel
Max Steel's picture

Bloomberg motto is deception and propaganda itself 

Fri, 07/17/2015 - 07:11 | 6322816 Supernova Born
Supernova Born's picture

IMO, the Bloomberg terminal isn't about providing information, it is about collecting information on what market makers are researching.

I wouldn't be surprised if the NSA modeled their systems likewise.

Fri, 07/17/2015 - 07:02 | 6322800 new game
new game's picture

we will NEVER know the truth about gold, who has it and how much, and for that reason i'm OUT.

Fri, 07/17/2015 - 07:17 | 6322825 Supernova Born
Supernova Born's picture

Chemistry, physics and history provide everything one needs to know about gold.

Fri, 07/17/2015 - 08:21 | 6323006 AE911Truth
AE911Truth's picture

Chemistry, Physics, History...

Plasma condense into any element. M. T. Keshe

 

Fri, 07/17/2015 - 08:43 | 6323082 shouldvekilledthem
shouldvekilledthem's picture

Central planners do not care for such nonsense when paper is effortless.

Fri, 07/17/2015 - 07:17 | 6322826 Arnold
Arnold's picture

I can tell you to the 1/10 of a penny how much your paper Precious Metals are worth.

Fri, 07/17/2015 - 07:28 | 6322858 Tall Tom
Tall Tom's picture

ZERO

Fri, 07/17/2015 - 11:27 | 6323835 RafterManFMJ
RafterManFMJ's picture

Golf clap.

Fri, 07/17/2015 - 07:33 | 6322875 Herodotus
Herodotus's picture

Oh ye of little faith.

Fri, 07/17/2015 - 08:00 | 6322935 holgerdanske
holgerdanske's picture

"we will NEVER know the truth about gold, who has it and how much, and for that reason i'm OUT."

all you need to know to be in, is that physical gold cannot be printed or made, it has to be found and refined at great cost. That is all you really need to know.

Gold, the original and only true money, in spite of Armstrong et al!

 


Fri, 07/17/2015 - 08:07 | 6322947 VinceFostersGhost
VinceFostersGhost's picture

 

 

and for that reason i'm OUT

 

Lie down and just die then....it's what they were going for.

 

Next?

Fri, 07/17/2015 - 10:32 | 6323587 e_goldstein
e_goldstein's picture

Can I buy the salvage rights to your boat?

Fri, 07/17/2015 - 15:22 | 6324689 debtor of last ...
debtor of last resort's picture

Knowledge is cheap, new game.

Fri, 07/17/2015 - 08:17 | 6322893 silver_stacker
silver_stacker's picture

Anybody who follows precious metals knows that this new number is bullshit. The worlds leading gold experts have been estimating that China's gold holdings to be in the 10,000 to 30,000 metric tons range. It's been long believed that when China reports their true gold holdings that the price of gold will skyrocket thru the roof because it will expose the fact that all of that gold flowed from western central banks and there is no gold left in the U.S. I just read yesterday that between Russia, India, and China, they have been buying up more than the annual world mine production of gold for the last 5 years. Where is the gold purchased from the rest of the world coming from? It's pure math. This would expose the fraud. Obviously China is not done aquiring more gold at western suppressed prices below production costs. When they can't get any more gold and they report their true holdings...it's game over!

Fri, 07/17/2015 - 09:04 | 6323194 eddiebe
eddiebe's picture

And when it's 'game over', it's war.

Fri, 07/17/2015 - 09:06 | 6323203 game theory
game theory's picture

Fake Chinese mine production numbers are where this gold game is being played. This currency war has gone nuclear...the Fed is going to be forced to move.

Fri, 07/17/2015 - 20:31 | 6325740 TheReplacement
TheReplacement's picture

One has to be careful.  If you corner the market on something then does that really drive up the price or does the market react by finding something less expensive?

Fri, 07/17/2015 - 10:11 | 6323493 data_monkey
data_monkey's picture

If everyone knew they had been amassing huge amounts of gold, then how much is priced in if they lowball the number? This changes nothing.

Fri, 07/17/2015 - 10:32 | 6323586 jaxville
jaxville's picture

  People and pundits keep pointing to Chinese gold demand and making the assumption that it is all going into their central bank.  The fact is that most of it is satiating public demand.

  I have clients who have visited China and they all report crowded shops where gold bullion, jewellery and other gold objects are sold to the public.

  The most stable gold reserves a nation can have are those in private hands.  I can't understand why some keep insisting that gov't holdings matter more than those held by their citizens.

 

 

 

Fri, 07/17/2015 - 11:42 | 6323883 Mugatu
Mugatu's picture

Does not matter.  Despite the hype, gold continues to fall.  As all those Iranian tankers storing oil start flowing to the world market, Oil will fall.  As oil falls, the remaining $13 billion of gold owned by Venezuela will have to be sold/pawned thus causing more issues for gold.  Meanwhile interest rates are going to rise also hurting gold further.  A perfect storm is going to hit gold.  

Time to sit back and wait for gold to break $900 before you buy more.  Its not time to be a gold bull.  You can't be in gold buying mode 100% of the time.  You got to know when to buy and the time is not now.

Fri, 07/17/2015 - 14:23 | 6324503 Bay of Pigs
Bay of Pigs's picture

I guess you've never heard of cost average buying?

One other thing I have noticed is that many currencies have been tanking and gold has been doing quite well. The Canadian dollar is still near $1500 an ounce for instance.  Up 5% yoy and when priced in USD, down 13%. Big swing currency wise.

Fri, 07/17/2015 - 15:25 | 6324707 debtor of last ...
debtor of last resort's picture

You can't measure gold and silver in currencies, BoP, especially in dirty flow fiat. I agree with your cost average though.

Fri, 07/17/2015 - 11:55 | 6323945 Money_for_Nothing
Money_for_Nothing's picture

They are announcing the party is over and that they have the biggest dick that is likely to be used for what dicks are used for. They are hoping everyone else will acquiesce and become their consort.

Fri, 07/17/2015 - 12:29 | 6324050 PesoFist
PesoFist's picture

Could they be officially claiming just enough gold to get into the SDR this October, then once they are in, reveal the rest.  This would be the best way to take control monitarily.  SDR lets them in thinking they won't be the strongest currency in the basket, then all the sudden the reveal massive gold holdings and become the strogest overnight and take control.

Fri, 07/17/2015 - 20:42 | 6325770 conscious being
conscious being's picture

I don't think China cares much about this bankster contraption called an SDR.

Fri, 07/17/2015 - 13:35 | 6324318 FireBrander
FireBrander's picture

China has a history of "Accumulating" and "Hoarding" raw materials...and they all ended the same way...panic selling and a price collapse...

Fri, 07/17/2015 - 06:56 | 6322792 negative rates
negative rates's picture

The 7 and 11 were left off that number.

Fri, 07/17/2015 - 07:22 | 6322834 Bokkenrijder
Bokkenrijder's picture

Look at the timing: the Chinese stock market is selling off, the Chinese housing bubble is deflating and 'growth' (7% according to the Chinese themselves, haha!) is coming to a standstill.

IMHO this is purely a domestic move in order to brainwash the Chinese people to have confidence in their central planners. "Don't worry about stocks and housprices: your government knows what it's doing and has increased it's gold reserves." As an unwelcome side effect however, the Chinese people will probably start to copy their government and buy more gold which will drive up prices.

So by releasing this 'official' number, the Chinese government may have shot itself in the foot if they want to continue to accumulate gold at relatively low prices.

Fri, 07/17/2015 - 13:37 | 6324326 FireBrander
FireBrander's picture

Any chance the people can exchange their stock certificates, or paper money, for gold? Yeah, that's what I figured...

Fri, 07/17/2015 - 07:41 | 6322894 translator zero
translator zero's picture

No, they left a zero off of the end. But the real number is higher. 

Fri, 07/17/2015 - 07:56 | 6322923 holgerdanske
holgerdanske's picture

This is garbage. What good is a statistic like this? and why would anyone bother reporting on it.

Meaningless and a total waste of time.

 

Keep stacking and make sure it is in coins that can be traded when need arises. You don't want to sit with a 1 kg bar which you can only sell to a bank or dealer, that can then confiscate it on sight, if reuired by law.

 

The states have got themselves into a state where the fiat money can collapse with no warning. Better be prepared or follow closely what is about to unfold in Greece.

 

It might well be an eye opener.

Fri, 07/17/2015 - 08:12 | 6322968 ZH Snob
ZH Snob's picture

this is like a bad strip tease.

Fri, 07/17/2015 - 16:13 | 6324939 Model T
Model T's picture

But, but; the nice man on TV said it was a "barbarous relic"----why they want to buy "barbarous relic" ???

Fri, 07/17/2015 - 09:22 | 6323269 wanderintheland
wanderintheland's picture

Go away, spam fucker.

Where's the mods???

Fri, 07/17/2015 - 09:57 | 6323433 Bunghole
Bunghole's picture

Who blindly clicks on links from some assclown with no history?

Fri, 07/17/2015 - 06:41 | 6322760 Usurious
Usurious's picture

bitches' gold

Fri, 07/17/2015 - 06:43 | 6322762 JustPrintMoreDuh
JustPrintMoreDuh's picture

Those idiots traded paper with ink for some barbaric relic ... suckers! 

Fri, 07/17/2015 - 06:45 | 6322766 Martial
Martial's picture

Wait....so they're saying they bought NO gold from 2009 until last month?

Fri, 07/17/2015 - 06:48 | 6322773 Quintus
Quintus's picture

Why not?  It's as credible a statement as any of their other economic statistics.

Fri, 07/17/2015 - 07:28 | 6322856 PartysOver
PartysOver's picture

The peeps in China that create those reports are in an intense compitition with the USSA BLS to see which can create a bigger pile of BS.  And the ignorant masses will take a big ol' sniff and like it.

Fri, 07/17/2015 - 06:48 | 6322772 kowalli
kowalli's picture

gold bitches

Fri, 07/17/2015 - 06:49 | 6322774 Serfs Up
Serfs Up's picture

Believable!

Fri, 07/17/2015 - 06:52 | 6322778 fockewulf190
fockewulf190's picture

It´s only a bishop move on the global chess board.  Not surprisingly, the move can only be awarded with a "?!" instead of an "!".

Fri, 07/17/2015 - 06:55 | 6322788 brunoaa
brunoaa's picture

An average purchase of only 100 t per year? Even Bloomberg was forecasting a number twice as big. Weird.

Fri, 07/17/2015 - 07:26 | 6322839 Tall Tom
Tall Tom's picture

The number is unbelievable.

 

If it is true then where has the Physical Gold ptoduction been going? Who is quietly stocking up reserves?

 

How much Physical Gold is the Federal Reserve stealing and secretly stockpiling, supressing price on the Paper Markets in order to acquire more of it easier?

 

If China has not been buying it up then who else is large enough to adsorb the annual production and release by the miners?

 

This report is problematic...for the FED.

 

AUDIT THE FED.

 

Who in the fuck has the Gold?

 

 

Fri, 07/17/2015 - 07:30 | 6322864 VinceFostersGhost
VinceFostersGhost's picture

 

 

Who in the fuck has the Gold?

 

If it's not you....it doesn't really matter.

Fri, 07/17/2015 - 07:47 | 6322901 Tall Tom
Tall Tom's picture

Well then...

 

If that is the case, then...

 

It certainly DOES matter to me.

 

Does it matter to you? (Yeah. I know that it does.)

 

I refine Gold. You can bet that it matters to me.

Fri, 07/17/2015 - 07:49 | 6322911 VinceFostersGhost
VinceFostersGhost's picture

 

 

Go back and think about what I said again Tom......you either have it in your hand.....or you don't.

Fri, 07/17/2015 - 08:20 | 6323003 Tall Tom
Tall Tom's picture

I have it. IN PHYSICAL FORM. I wear some of it. I carry some of it as COINS on my person at most times.

 

I have some of it stashed away...in PHYSICAL FORM. I do NOT OWN PAPER GOLD.

 

I just do not have as much of it, the Physical Gold, as I want.

 

To get more of it it needs to BOTH be available and within budgetary constraints.

 

If the Fed has stolen it, or, if it is "locked up in a bank in Beverly Hills in somebody else's name", or, if it is in the Chinese Central Bank, then getting more of it will be problematic.

 

You wrote that getting large quantities IS already a problem. Rob Kirby also says the same thing.

 

I am watching that develop.

Fri, 07/17/2015 - 08:30 | 6323029 VinceFostersGhost
VinceFostersGhost's picture

 

 

Then what are dogging me for?

 

The fight is out there....not with me.

 

You're punching the air.

Fri, 07/17/2015 - 08:40 | 6323061 Tall Tom
Tall Tom's picture

I wasn't dogging you...

 

I was supporting you.

 

When I wrote that I knew that you had it (as it matters to you...) that needed to have been the clue.

 

I also wrote that I REFINE IT.

 

You did not read what I wrote, bro.

Fri, 07/17/2015 - 08:44 | 6323086 VinceFostersGhost
VinceFostersGhost's picture

 

 

I was reading what others would read in it and just being proactive.

 

It's just a little thing I do.

 

Sorry if I stepped on your toes.

Fri, 07/17/2015 - 10:17 | 6323527 lasvegaspersona
lasvegaspersona's picture

In the article it quotes Li Gang as admitting China does not buy as much as it wants 'as the market is too small'.

This means China is cooperating in maintaining the dollar. They could easily drive the price very high and displace the dollar as a wealth reserve.

Fri, 07/17/2015 - 07:35 | 6322880 papaswamp
papaswamp's picture

Have to remember gold in Asia and ME is huge...its currency. Very few places you cannot purchase items with PMs or PGs. Its a barters fans giant play land.

Fri, 07/17/2015 - 10:13 | 6323510 lasvegaspersona
lasvegaspersona's picture

the people of China buy lots of gold too..

Fri, 07/17/2015 - 06:57 | 6322789 sagitarius
sagitarius's picture

GAAP or IAS procedure?

I mean books cooking according to GAAP or IAS?

Nevermind, htey have at least doble as much to disclose yet, but it is on the books of any other entity, maybe any other banks, or a Hong-Kong scheme.

 

Russia was buying 100 tons per year in the recent 3 years.

My estimate is, that China was buying 5x more....

Fri, 07/17/2015 - 07:12 | 6322803 Supernova Born
Supernova Born's picture

Is actual math used at all in central banking?

Fri, 07/17/2015 - 07:20 | 6322832 Arnold
Arnold's picture

Yes, pay day is every two weeks, commissions are monthly and bonus s are annual.

Fri, 07/17/2015 - 08:13 | 6322975 VinceFostersGhost
VinceFostersGhost's picture

 

 

How do you juggle that rigid schedule with the hookers and blow?

Fri, 07/17/2015 - 08:24 | 6323016 youngman
youngman's picture

You know there are probably 10 Chinese guys that actually count all the gold...make a report and give it to some Political head who looks at it and decides what number to put out....pure government crap..

Fri, 07/17/2015 - 08:30 | 6323035 Freebird
Freebird's picture

Of course man! You just can't just create fiat willy nilly. If you could the global financial sytem would be in a perillous state like a house of cards. Please...

Fri, 07/17/2015 - 09:06 | 6323204 lakecity55
lakecity55's picture

It is in I-Talian, amigo.

Write it in Spanish or English, please.

Fri, 07/17/2015 - 07:13 | 6322821 PirateOfBaltimore
PirateOfBaltimore's picture

The monkey is going to need a bigger hammer.

 

I'll put a gram on the price closing down today 

Fri, 07/17/2015 - 07:32 | 6322871 VinceFostersGhost
VinceFostersGhost's picture

 

 

I'll put a gram on the price closing down today 

 

Heh heh....as in REAL gold?

 

That alone should be enough to drive it down $50.

Fri, 07/17/2015 - 07:37 | 6322886 PirateOfBaltimore
PirateOfBaltimore's picture

No, good weed. That's more of a currency in baltimore.

 

Through a THC induced haze is the only way I can make the "markets" today make sense.

Fri, 07/17/2015 - 07:46 | 6322906 1stepcloser
1stepcloser's picture

Everyone knows Crab cakes are the best currency in Baltimore

Fri, 07/17/2015 - 08:17 | 6322988 PirateOfBaltimore
PirateOfBaltimore's picture

Too right you are: EBT Crab Cakes, Bitchez.

Fri, 07/17/2015 - 08:29 | 6323033 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

As long as they have a good supply of crabmeat from Louisiana!

Fri, 07/17/2015 - 08:43 | 6323083 PirateOfBaltimore
PirateOfBaltimore's picture

Woop, there it is. 

 

Slammed to 1140 handle at US open. Bunch of bullshit.

Fri, 07/17/2015 - 17:12 | 6325138 PirateOfBaltimore
PirateOfBaltimore's picture

Annnnnd I'd like my weed now please.

Fri, 07/17/2015 - 07:24 | 6322842 johnlocke445
johnlocke445's picture

China has made it perfectly clear to the world that gold sits at the apex of their financial pyramid. Therefore, China must have a reserve amount at least equal to the United States (which has none in first place). I say this for one reason. China would not embarrass itself by announcing such a small amount of gold in its reserves after making such a big public relations commitment telling the world that gold is the center of China's financial strategy. In other words, the Chinese always put their gold where their mouth is.

Fri, 07/17/2015 - 09:04 | 6323195 lakecity55
lakecity55's picture

yeah, but it is all to secretive, we do not know for sure the US is out of Au. They are getting it somewhere to make AGEs.

Fri, 07/17/2015 - 07:36 | 6322844 Herodotus
Herodotus's picture

This is only one category of state-owned gold.  This is foreign-exchange reserves owned by the PBOC.  Couldn't there be other agencies of the government that also own gold?  Perhaps they have a sovereign wealth fund that owns another 10,000 or 20,000 tons.

Fri, 07/17/2015 - 07:27 | 6322851 docinthehouse
docinthehouse's picture

Anything China says is BS.

Hope they "salt" their cheerios with it.

It makes for a pretty urinal.

Fri, 07/17/2015 - 07:27 | 6322852 Dathedr
Dathedr's picture

The moment of gold and silver's price ascent then must be very close, and with it of course the fall of banksters' crime centers too. Now just imagine watching the collapse of 1,6 quadrillion dollaro in derivatives fall -- what an unforgettable, one-time event with fireworks and all is that going to be! Great historic time ahead indeed!

Fri, 07/17/2015 - 09:03 | 6323191 lakecity55
lakecity55's picture

Here is your hotel bill, sir.
Do you take Derivatives?
No.
Cash?
No. Only Ag or Au. Special discount on your bill if you have Pt this week.

Fri, 07/17/2015 - 07:28 | 6322857 youngman
youngman's picture

Remember the Chinese are very corrupt...they other gold they bought probably went inot their personal family  accounts...not the states...that is how they do it....one for China..one for me...one for China..ooogh..two for me..

Fri, 07/17/2015 - 09:38 | 6323341 Max Cynical
Max Cynical's picture

Makes me wonder how many wall street insiders have personal vaults full of gold/silver.

Fri, 07/17/2015 - 07:29 | 6322861 Arnold
Arnold's picture

'My word is my bond.'

Seems to have gone the way of the wind, following the same path in China as it has in America.

 

This is what happens when you drink the red commie Kool Aid

Fri, 07/17/2015 - 07:29 | 6322863 slowimplosion
slowimplosion's picture

But the price remains the same?  Sure, yeah right.

Fri, 07/17/2015 - 07:35 | 6322879 Lumberjack
Lumberjack's picture
Asian buyers snub falling gold price, India still at a discount

 

http://in.reuters.com/article/2015/07/17/gold-physicals-idINKCN0PR0C6201...

 

A fall in global gold prices to eight-month lows this week failed to boost demand in top consumers China and India as would-be buyers anticipate further declines on the back of a strengthing U.S. dollar.

Bullion took a hit after Federal Reserve Chair Janet Yellen told Congress the U.S. central bank is on track to lift interest rates this year if the U.S. economy expands as expected, sending the dollar to a seven-week high versus a basket of currencies.

Spot gold fell as far as $1,142.10 an ounce on Thursday, its lowest since November 2014. It is on course to extend its losing streak to a fourth week.

"Demand is sluggish. The Chinese would rather invest in the stock market, the property market, than in gold. The strong dollar is dampening interest in gold," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers Ltd in Hong Kong.

Domestic prices in India remained at a discount to the global spot benchmark, although the discount narrowed to $4-$5 an ounce from $6-$8 last week.

"Demand is quite weak across the country as consumers are cautiously spending," said Neelkamal Soni of Bikaneri Jewels. "Jewellers are giving preference to liquidate old stocks instead of buying new gold to prepare jewellery."

Indian gold prices are trading at their lowest level in four months.

Reflecting weak demand, India's gold imports dropped 37 percent in June from a year ago to $1.96 billion. Imports should fall further in July with demand not picking up despite lower prices, said Bachhraj Bamalwa, director at All India Gems and Jewellery Trade Federation.

  

The Indian market has not been at a premium since April.

Fri, 07/17/2015 - 07:37 | 6322887 papaswamp
papaswamp's picture

Keep coming down baby...some mines will go on the markets then....

Fri, 07/17/2015 - 08:15 | 6322980 Latitude25
Latitude25's picture

Yeah, I really believe what reuters says.  Signs of desperation in credit markets everywhere.

Fri, 07/17/2015 - 09:01 | 6323174 lakecity55
lakecity55's picture

Well, think of all the zombies in the US who turned down 10oz of silver for a Hershey bar of the same size in that recent video.

Fri, 07/17/2015 - 07:37 | 6322885 topshelfstuff
topshelfstuff's picture

"""""""" from 38.89 million to 53.31 million troy ounces, a 57%""""""

 

from 38.89 million to 53.31 million troy ounces is a 37% NOT 57% Increase


 

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