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Gold Smash Leads to Surge in Demand For Coins, Bars Around World
Gold Smash Leads to Surge in Demand For Coins, Bars Around World
- U.S. Mint sees highest monthly gold eagle sales in over two years
- Indians take advantage of low price in a season not typically known for gold buying
- Chinese investors, disillusioned with stock market, are buying gold in large volumes
- Demand for coins from Perth Mint 37% higher in June and even higher for July
The manipulative smash on the gold price on Sunday night has once again led to a surge of buying of gold coins and bars across the globe. Both the Wall Street Journal and Reuters report on how bullion dealers are seeing a spike in demand for gold coins and bars in India and China and indeed Europe, Australia and the U.S.
The U.S. Mint - which ran out of Silver Eagles earlier in the month due to unexpectedly high demand - has sold 110,000 Gold Eagle one ounce coins so far this month according to Reuters. This compares with a mere 21,500 ounces sold in May and 76,000 in June. It represents the highest level of monthly demand in over two years - with more than a week to go till the end of the month.
In India, July is typically a quiet month for gold sales as farmers, who make up the bulk of the population, allocate their cash towards cultivation, according to the WSJ. However, the unusually low price has led to a surge of buying.
“Gold’s plunge to five-year lows this week has prompted a swift rise in demand from jewelry retailers in China and India, the world’s top consumers of gold, leading to a doubling of premiums paid on physical gold,” reports the WSJ via Marketwatch.
The article goes on to quote an Indian jeweller:
“Until now, the gold demand was very low because of the season. Demand has picked up noticeably as the common man thinks prices have bottomed out.”
Meanwhile, Chinese investors have been allocating money to gold following the bursting of China’s equity bubble.
Interest in gold “had waned in recent months as investors flocked to the soaring stock market.” The surge in demand has caused a doubling in the premiums paid for gold. Demand for investment type “gold biscuits” has “shot up” this week according to a Hong Kong based jeweller. “Our sales are up by 20% to 30% compared to average sales in previous months.”
The Perth Mint in Australia has also seen a sharp rise in demand for gold coins. In June, sales were up 37% on the same month last year with the mint clearing 21,962 ounces.
“Sales in July already matched that level earlier this week and appear to be gaining momentum,” said Ron Currie, sales and marketing director.
The Perth Mint sells coins and bars internationally and is seeing strong demand in the U.S. and EU.
With the price of gold being determined by paper contracts - often regardless of the supply and demand fundamentals of the actual metal itself - spot gold prices today are no longer a barometer of perceived risk in the system.
However, It is clear that many investors in the East and West are accumulating physical gold, the main benefit of which is financial insurance. This would suggest that a great many more people are cautious about the health of the financial system and indeed the global economy than the gold price may indicate.
The experience of the Greek people in not being able to access bank accounts and even cash in safety deposit boxes is also making nervous and leading to gold buying and diversification.
The risks posed by the gargantuan unpayable debt choking the financial system and the economies of the world along with simmering geopolitical tensions remain. We advise clients to hope for the best while planning for the worst by owning physical gold - history’s and today’s store of value.
Must-read guide to bail-ins: Protecting Your Deposits From Confiscation
MARKET UPDATE
Today’s AM LBMA Gold Price was USD 1,101.65, EUR 1003.69 and GBP 705.91 per ounce.
Yesterday’s AM LBMA Gold Price was 1,096.80, EUR 1002.468 and GBP 702.38 per ounce.
Gold fell $6.30 or 0.4% to $1,093.90 per ounce and silver was flat or down 1 cent to $14.80 per ounce yesterday.
Today, gold in Singapore ticked higher, prior to gold bullion in Zurich moved slightly lower.
This morning in European trading, silver for immediate delivery rose 0.6% to $15.00 an ounce. Spot platinum rose 1.1% percent to $995 an ounce, while palladium rose 0.8 percent to $635 an ounce.
Must-read bullion guide: Gold and Silver Storage Must Haves
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It's just a matter of time before our "leaders" confiscate gold the same way FDR did, in 1933. The people who bought from the US Mint are in government records as having gold.
When I was a child, my, elderly, neighbor showed me her gold. She didn't trun her gold coins in, in 1933. What a thrill it was to see real gold coins.
The scarcity in gold supply would not only come from mines winding down, but from physical gold in strong hands.
There is supply, at the right price, and if people suddenly needed to cover their transactions with real gold it will pretty hard to shake volume from strong hands at anywhere near the current price.
Of all the gold that has been mined and still around how much of it is actually available for the market, how much tied up in banks, how much in strong hands (especially in current economic climate) in major investors/institutions, Indians, Chinese, SE Asia, etc.
A reduction in paper gold below mining costs reduces supply of 'available' physical gold. Demand increases with the falling COMEX paper price , whilst strong physical hands get stronger.
It would amazing if ened up with a Paper gold price of $250/oz at which price there would be zero physical gold available I would think.
The problem for paper/physical gold now is that those interested in acquiring and already holding physical gold are well aware of the strong global geopolitical and economic dangers about, thus they are not soft hands.
The conundrum then for those wanting a low gold price is that taking it too low sees physical gold get vaccummed from the market at an increased rate, winding the spring even tighter.
And another problem is that taking the paper gold, too low sees the tide turn to longs to cash in on a far too low a price.
So the lower they go the more delicate and dangerous things come for those wanting to control the gold price. Too llow creates a very tight coil that when it breaks free may see gold shoot through $2,000 in a day.
They will definitely make it so that only the strongest conviction will hold gold.
By the time it hits 1000, the average sheeple will be hating gold like the plague.
Hurrrra.. F&ck ya. Been scrounging eBay. Got a few nice gold st gauden's (Lady Libs).. Nothin like old gold.
The gold peddlers sound a lot like a character on CNBC, the equity gambler's network:
it's always BUY! BUY !BUY!
NEVER a reason to NOT buy gold.
Sure sign of HYPE.
I was at CNI in Los Angeles two weeks ago to buy a little silver. Ahead of me in line were three Cantonese men, buying Au. I don't speak Canto but understand a few words.
One of them bought three 1 oz. gold bars. The other two bought just under $10K worth of gold coins, Australian Kangaroos I think. All three guys paid cash.
They just shoved their PMs in their pockets and casually walked out the door...
Ya.. and on the exit fron Hong Hong the got electronixc paper T-bills, that they dumped for cash in the US of A. May the Debt come home to roost.
If you are going to buy shiny lead, better to but it at $800USD per ounce, seems to be heading there quickly - in spite of immanent apocalypse, according to the shiny lead carnival barkers.
with even gold-hostile media outlets admitting openly that the $2.5B dump was clearly designed to move the price rather than a genuine trade, what i wanna know is: why doesnt the 'Gold Fix' LBMA announce a +$20 offsetting corrective rise?
I mean, if youre gonna have a 'Fix' at all (which in itself erodes confidence in supply/demand transparency) failing to correct this manipulation just shows yer in the same boat as the manipulators.
Carn LBMA...... what are you waiting for? Prove your relevance.
I can't buy anymore, I have a knack for it dropping in value the moment I do.
Goldcore should apologize to all the sheeple who bought gold all the way down. Still trying to claim its manipulation just shows they are useless traders. Imagine spending 4 years clinging to a bad trade. Sad thing is they will do it all their life. Then the Gov will confiscate their gold. Bunch of mugs!
Old Gold is the way to go, especially if you think of gold as a very elastic luxury commodity. Elasticity can be moderated by scarcity.
so you're a trader, not an investor
why should goldcore apologise to gamblers?
Well this is fascinating...
One the one hand, Gold is classified as a "Giffen Good" or alternatively as a "Veblen Good" whose sentimental value-based demand rises as its price rises (in violation of classical demand theory)
and on the other hand, Gold also behaves like a traditional good, where falling prices result in diminishing supplies, until classical demand theory takes over again...
And yet, Wall Street is telling me I should not aquire or possess ANY Gold (in fact I should be chronically short Gold, with leverage), simply because the banksters are going to manipulate the price to zero...?
Do I have all this logic clearly laid out? It's so hard for me to think like a CNBC anchor some times... When the price of Gold reaches zero, there will be no more demand, right...?
No, wrong.
gold.
Bitchez.
When we (the semi-informed US citizenry) were concerned that inflation might get out of hand, we gravitated towards PM's. Fast forward and now some are concerned about deflation. In the face of a strengthening
dollar,and deflationary pressures in the US. The rest of the world would be concerned about the inverse, in terms of a weakening currency in their country; so they, like we previously did, will gravitate towards PM's. So if
the price of PM's are increasing in many parts of the world; parts where folks actually take PHYSICAL delivery, does it mean the over all trend for the PM's is up or down? And are the Central banks simply coordinating
with each other , like a dance, where one partner is the Fed. and the other is a conglomerate of other CB's? In this dance one partner will lead for a while(inflation), while the other follows(deflation), and in doing so
their respective banking interests are recapitalized, at the expense of the general populace, who are the furthest from the fiat spigot. Parties in the click know when a major shift is at hand, thus they can position
themselves to capitalize on the impending move. Inflation & disinflation are the millstones used to grind our bones to make their bread.
Uh oh... there's trouble at the mint...
If there is all this demand, how come the price keeps dropping? Must be way more supply but oh wait, there isn't any real way to measure it is there
London Gold Pool - Wikipedia, the free encyclopedia
Price continue to fall, people continue to buy.
Fall some more, buy some more.
Fall a lot more, no more money to buy.
Fall even more, panic sinks in.
Fall reaches the bottom, sell everything.
Those who think I am wrong, well, there were massive buying when the price was sub 1,600, and massive buying when it was sub 1,350, wasn't it?
Buy fizz, remove it from the banking system and hold. If anything hedge or trade with selling paper gold, but never the real asset.
When were any precious metals ever zero or even near zero throughout history? Think you'll buy your 18K heavy gold ring for $8.95? Good luck with that. The panic won't come with the gold. The panic will come when people realize the paper is worthless. Gold purchases will go OUTSIDE the market and spot price if the official "market" goes low enough, because there won't be any physical gold available. That's when gold owners will be totally redeemed.
When were any precious metals ever zero or even near zero throughout history?...
Well, as a believer in the historicity of the bible, there are a couple of accounts describing the same event on the up side:
"All King Solomon’s drinking vessels were of gold, and all the vessels of the House of the Forest of Lebanon were of pure gold; silver was not considered as anything in the days of Solomon" (2nd Chronicles 9:20) and "all King Solomon’s drinking vessels were of gold, and all the vessels of the House of the Forest of Lebanon were of pure gold. None were of silver; it was accounted as nothing in the days of Solomon" (1st Kings 10:21)
On the down side, these questions by Jesus still beg an answer: “For what is a man profited, if he shall gain the whole world, and lose his own soul? or what shall a man give in exchange for his soul?” Matthew 16:26
As Tyler is wont to say, it will assuredly go to zero for all eventually.
I think Silvers anti germ qualities would have always made it desirable for drinking vessels. At least after we started standing up.
As for fables as historical books, well maybe they are mistaken or written for a different purpose than conveyance of facts..
...Silvers anti germ qualities would have always made it desirable for drinking vessels...
Why aren't all drinking vessels made from silver if that's the reason for doing so? And do you suppose that a person's 70-80 orbits on this earth are the all to be all?
...As for fables as historical books...mistaken or written for a different purpose than conveyance of facts...
Your assertion this book is "fables" is based on what? I would contend your proclamation is based on nothing more than what the fed claims as to their right and ability to proclaim their product as inherently valuable for no other reason than their speaking the words and their ability to purchase our children’s future with our promise to pay interest on their garbage.
I will agree however, that the canonical law, prophets, wisdom literature, Gospels, apostolic letters addressed to churches / individuals and the Revelation of the apostle John foretelling the original and conclusive holocast, i.e. the destruction of the jewish temple in Jerusalem in 70AD and subsequent blossoming of the eklesia were in fact written for a different purpose than merely to proclaim truth, and that’s to provide access to the knowledge the called ones utilize in order to being counted among those united to our common self-existent Creator throughout eternity.
“Jesus called the crowd to him and said, “Listen and understand. What goes into someone’s mouth does not defile them, but what comes out of their mouth that is what defiles them.” Then the disciples came to him and asked, “Do you know that the Pharisees were offended when they heard this?” He replied, “Every plant that my heavenly Father has not planted will be pulled up by the roots. Leave them; they are blind guides. If the blind lead the blind, both will fall into a pit.” Matthew 15:10-14 RSV
jmbelief
+100 Golf clap.
Yeah, lot's of backing up the truck. Well if it hits $1000, my truck is dumping. I quit backing up the truck at $400.
You guys are really funny. What do you think Asians will be doing? LOL
Buying overpriced stocks and bitcoin? Who got screwed the worst in bitcoin? Who got screwed on their stocks the worst? So how good are asians at spotting value? Not any better than the rest and possibly even worse.
I really don't have time to educate you. Buy paper products and hold on to them tightly so you can wipe your ass with them.
Certainly not gld stocks or gold etfs but stocks in general seem to be much better investments than gold since 2011 and that is a fact, real-estate too and thats not paper. I was born in 1956, gold has not been much of an investment in my lifetime. I bought from about $265 to $400 and it took years to make anything with it but if I had bought AAPL in that timeframe with the same amount of money, I would have done far, far better.
if the queen had balls, she'd be king.
hind sight's a bitch.
you're still looking at gold through an investment lens like you were months ago.
and you still haven't learned anything.
What am I supposed to learn? Gold is good? It's good for jewelry and that is about it, oh let me not forget electrical connectors.
Bring the gold!
https://www.youtube.com/watch?v=xZu_AKGxllY
Gold has worked down from Alexander’s time. When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory. – Bernard Baruch
When GS calls for $1000 gold expect the price to rise.
I heard a rumour that they perfected a process to make GLD out of some part of spent nuclear fuel, which Gordo Brown used to good advantage a few years back.
But it's just an unsubstantiated story that you probably heard here first.
HP and Epson have long had a process to make GLD out of thin air.
It is called printer ink.
Our modern-day alchemists have already perfected the process that spins thin air into gold...or so they think.
ahhh fuck.... your just trying to scare the shit out of us now!!!! However I do find it a plausable story.... just hope that the cost of prduction is lile a million times more expensive than traditional mining.... otherwise we are fucked... this must be what it feels like to save in fiat...you know where they just perfected a process to make £$€ out of thin air ....
www.teamramgold.com
Back in the day, rumor had it that the Soviets had a reactor (s) configured to make gold on a full time commercial basis. it worked, but was still unprofitable with gold in the $300 range...
Fuku s?
I personally cant understand why there is such a divide between those for and against holding gold. Any sensible person should realise that it matters not what makes you wealthy So long as you become and remain wealthy (in the material sense) if that is your goal.
If that means holding gold then hold gold. If it means holding stocks then hold stocks if it means holding both then hold both... FFS its like having an argument about should a person be left handed or right handed ... WHAT FUCKING DIFFERENCE DOES IT MAKE so long as they can write!!!
The world moves fast - surly the purpose is to try be ahead any which way you can..Gold, Stawks, Fiat, Paper, real estate ... they are all just tools at your disposal... use whatever one is required for the "job" at hand.. (and for some of the dumb fucks in here... the job is to become wealthy)
Sure I agree that everyone should hold a % in AU... but not to the exclusion of every other asset.
www.teamramgold.com
for access to small weight bullion... open a free account today... Become an affiliate, refer a friend, earn commissions and get your bullion for "free"...
The reason for the divide is that the 'gold bugs' are doing the expected thing. Historically, their actions make perfect sense.
The anti-gold folks know this. But fiat currency requires faith...you've got to be a true believer. And true believers make gods of the objects of their affection, in this case, fiat currency.
We gold bugs represent not just a different viewpoint, but a challenge to their chosen God. For their fiat to have any value and meaning, all other would-be gods must be shown to be false.
So there can be no meeting of minds, no co-existence. Does the good Christian argue with the Devil? No, he says Get thee away, Satan! In fact, they're warned not to even TRY to reason with Satan, he twists the truth and traps the innocent...just get away.
It's a mindset that creates the divide. One does the normal, expected thing. Another, having chosen a new God, decides to do things another way. And because their actions are based on faith, not reason, it is a fragile confidence and easily shaken. To strengthen their own faith, they must 'prove' their choice was the correct one by proving that YOUR God is no good, a loser, a 'barbarous relic'.
Their God can't afford to let your God have any legitimacy.
his assertions do not warrant 9 down arrows. plain and simple. and i doubt he would disagree with anything you just said. however, his argument that whatever composition and distribution one wants to hold ought not to be much of a discussion as it invariably becomes. who cares? and I agree. putting all you wealth in gold is just as retarded as putting all into AAPL, NFLX, MMM, farm land, bonds, or lending it all to your cousin. Diversify and hedge according to what you can afford, risk tolerance, cash flow requirements, and of course, intertemporal preferences.
The down arrows are for spamming.
Mr Yellen , Mrs Barak and the FED have ass holes puckered up by information like this.
"Physical demand for gold in China is down 9 percent. Worldwide, demand for gold coins, gold bars down 17 percent this year. So you're not getting the buyers even though the price is going lower," said trader Anthony Grisanti on CNBC's "Futures Now."
http://www.cnbc.com/2015/07/22/gold-is-doing-something-it-hasnt-in-20-ye...
Quote from that article, "With inflation low and the dollar strong, Gero says gold will stay range-bound until there are signs of inflation." Ignorance is strength fellas.
This the best short explaination I've seen yet for what's wrong with gold: https://www.youtube.com/watch?v=BiXIs3bbETA
OMFG.
MDB must be on the job writing for this news outlet. . .