Gold Demand Surges As Price Suffers Worst Month Since November

Tyler Durden's picture

Amid a resurgent dollar, gold prices have tumbled in September (worst month since Nov 2016). However, as geopolitical tensions soar, with the standoff between the U.S. and North Korea probably topping the list, demand for precious metals surged with Gold ETF holdings rising most since Feb 2017.

Bullion has sunk 2.8 percent in September while holdings in gold-backed ETFs expanded 2.4 percent as of Thursday.

Plenty of investors are still seeking havens, says Barnabas Gan, an economist at Oversea-Chinese Banking Corp. in Singapore.

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38BWD22's picture

 

 

Gold, bitchez!

Physical only...

 

Raffie's picture

Gold going to the loving arms of the 1260 range.

Jamie Diamon & friends feel that is a best price for gold.

38BWD22's picture

 

 

Speculators gonna speculate.  $1260 would be just another bump in the road to much higher prices.

Kinda like recent Chinese actions re BTC...

Billy the Poet's picture

I found a mercury dime in the Walmart parking lot last week. All scratched up but junk is junk.

strannick's picture

ETF paper gold sucking up demand is WHY the price is low.

Smarten up, you no-phyzz-buying idiots

YUNOSELL's picture

Ah, excuse me..... can I exchange all my physical gold coins for a GLD ETF paper claim on unallocated gold? thank you for your assistance!

38BWD22's picture

 

 

Silver IS silver!

+ 10 cents!

Bill of Rights's picture

Got you beat, I was taking my daily walk around the local cemetery, and there laying on the ground at my feet no bull shit in a cigarette pack wrapper 10 silver dimes I was like what the fuck!..

Consuelo's picture

 

 

A daily walk around the cemetary keeps the grim reaper at bay...    

Fucker just keeps standing there though...

 

 

Kafir Goyim's picture

Those coins were to pay the ferryman.   Give them back, you bastard!

ReturnOfDaMac's picture

Did he get him to the other side?

Dsyno's picture

"I found a mercury dime in the Walmart parking lot last week. All scratched up but junk is junk."

"Would you bend over for 10 cents?"

"Why not? I bend over for the government, AND I pay them."

vato poco's picture

ahhhh, the good lads are even giving us a CHART that'll help us to know when to BTFD, and if we'd only BTFD at exactly the right time - you know, back in the past - , we'd have all made out like bandits. say, where do *we* go to get those charts from the future to know what to do today??

next up: yet another rerun of the Jesse Livermore story, urging us to be like the guy who made 3 gigantic fortunes using his canny skillz, and then lost all 3 of them using those exact same crafty skillz, and ended up eating a gun. betcha HE wished HE had some future charts, huh?

Raffie's picture

1260 is a very popular GOLD number... no clue why...

I keep all my PM expations at ZERO, because no matter how small of a gain will be a win.

Got all the gold/silver I want buried with a big X on the land and made a treasure map too. LOL. 

PlayMoney's picture

Econ 101 I was taught in school. The more the demand .....the more central banks short large contracts.

Give Me Some Truth's picture

Demand - or sentiment - has been killed by recurring smashdowns especially over the last six or so years. When prices should be going up, they go down. The effect is to demoralize 99.9 percent of prospective gold and silver buyers. You really do have to be a different breed to keep buying gold and silver when you know that "City Hall" is going to do everything in its power to make sure the price does not rise.

Most gold bugs are capitulating after years of "torture" and the One Percent who actually have enough money to move the gold price (if they ever bought gold) want only to protect the printing press and fiat money. They fear and despise gold. 

Demand for gold is coming from China, the people of India and Russia. The "man on the street" in America no longer thinks about it, or if they do they view it as a silly rock or relic. The campaign against gold (which is really a campaign to protect the fiat printing press) has actually worked. So far.

ronthefisherman's picture

Yup, China loves a low gold price - they are vacuuming up all the World's available phizzz.

Mid October the fireworks start when the Chinese offer Yuan and gold for oil from all the ME oil producers.

And can I get a bet on - that the FED will NOT raise rates in December?

No way they can afford to give the Chinese who are holding a trillion dollars worth of FED paper an interest rate rise.

 

 

 

Blue Steel 309's picture

I'll wait until it hits 1200 or lower, again. Thanks.

adamas's picture

1125... watch and wait... then 5000 18 months later 

EcoJoker's picture

Need to start killing bankers.

Kaiser Sousa's picture

Hence,

The "DEATH TO THE MONEYCHANGERS" refrain copyright

Kaiser Sousa circa for fucking ever!

debtor of last resort's picture

If you had one btc for every upvote you got from me, you would be fucking Hefner goats by now, dude...

lester1's picture

Eventually that fraudulent COMEX is going to fail to deliver physical gold and panic will set in within the wealthy elites. 

Prices will skyrocket when this happens. Paper gold should be illegal because it distorts reality.

HumanBrain's picture

Thats the way it will end. Chinese Gold backed oil and gas futures contracts will be the straw that breaks the Comex's back. The window to get real phyz will close in the next 6-12 months. 

HumanBrain's picture

Thats the way it will end. Chinese Gold backed oil and gas futures contracts will be the straw that breaks the Comex's back. The window to get real phyz will close in the next 6-12 months. 

laser's picture

Gold price will recover after the Chinese holiday week.

Give Me Some Truth's picture

They will fail to deliver when someone/some organization makes a big buy and actually demands delivery, which is unheard of I gather. But it will happen when the first "big money" panics. Then everyone will try to get some. The key for the Establishment is to keep that big player from panicking, or when he does to teach him a quick lesson so no-one else follows and leads to a stampede. He who "bails first" will lose club membership that's for sure.

Montana Cowboy's picture

Gates and Buffet combined couldn't put a dent in the real true global gold glut.

TVP's picture

Oh yeah, any day now for the past fifty fucking years the COMEX is going tits up.  It's coming, you better believe it.  Just keep waiting and waiting.  Phyzz stackers will emerge as the new kings of the world.  They might even get zapped up into the rapture and become gods.  

Even Goldmoney is better than physical, at least you can spend it without having to exchange for fiat and taking a loss on the premium.  They now accept cryptocurrency, too.

 

 

Montana Cowboy's picture

I don't know how long you have been hanging around these markets, but I have been trading them for almost 3 decades. This delivery failure threat is as old as the hills. I'll tell you why delivery defaults are impossible. Because the shorts are mostly bullion banks that actually have the metal. But the longs are in their positions on margin only. The bullshit longs don't have the cash to call for delivery. Its the paper longs that up-rig and corrupt the paper markets because they are too broke to execute on their contracts. You will never have delivery failures with cash-poor longs.

willy up the creek's picture

This would seem to make no sense.  How could demand be surging at a time when the price is going straight to Tampa.  And, if in fact, it is, that would seem to be a truly ominous sign.  What will the price do then when demand eases up?  I go with the obvious - if the price is falling, and sharply, then the selling must be surging even more.    

RealistDuJour's picture

To the person who downvoted you...  Okay, so Gold ETF's are up... yet gold is still down.  How bad would gold be down if the etf wasn't in there propping?  It is BASIC economics that if demand surges price does too.

 

ETF's account for what percentage of real global demand?  Squat.  Haven-seeking investors don't buy an ETF.  They buy physical gold.  Come on Zero even you mock "paper" gold. 

Bay of Pigs's picture

The Banksters buy the ETF's as a hedge on all their COMEX futures shorts.

Bunch of paper humping maggots.

TVP's picture

Fucking paper humpers.

I'm way better than that because I only hump PHYSICAL.  

Montana Cowboy's picture

Why blame shorts with no metal when there must be a long with no cash on the other end of EVERY contract? Do you realize that to open a Comex contract, you must go both long and short? If you opened your position with a long, you must close it with a short. If you opened it with a short, you must close it with a long. You only get to decide which card you play first and which one you play last - but you must do both. You get tagged with the label of which one you did first. That is the difference between a long and a short. But don't ever expect miners and coin dealers to tell you this. The Church of Gold and Silver likes to keep their believers in the dark.

Montana Cowboy's picture

Yep. If every ETF gold buyer instead bought physical, it wouldn't take a billionth of a percent from the physical glut. Another burned-out narrative is that ETF buyers don't realize there is no gold behind their purchase. There was once a time when that might be credibly asserted, but no more.

Montana Cowboy's picture

It seems counter-intuitive. Really its not. The explanation lies in the fact that, unlike other commodities, gold is not perishable and it is never really consumed. Supplies can come from stored inventory which has increased every day for thousands of years. Stackers think they are consumers because they took some ounces off the market. Stackers are just remote Comex warehouses because they can't possibly consume gold.

People are driven to gold because the amount of fiat can be continuously increased and inflated by over-supply. Why does anyone think gold got an exemption from this same dynamic? It didn't. The fact is that there is a glut of physical gold and the shorts know it. The coin dealers have totally exhausted that 'shortage' narrative and they have never provided any evidence for their 'cartel' theory. The existing supply has proven itself to be inexhaustible. People are finally questioning that narrative that gold, or any commodity, can be down-rigged to fire-sale prices for decades without depleting the supply. After 20 years of alleged manipulation, its either not being down-rigged or its not at fire-sale prices. And if the supply can't get depleted when prices are down-rigged, how can you ever expect it to go up?

SeuMadruga's picture

Paper-gold quenches demand that otherwise'd go to physical, thus preventing its supply from depletion.

ps: or so I've been told...

Montana Cowboy's picture

You could only make that argument to the extent that paper gold buyers mistakenly believe there is real gold behind their purchase. Otherwise its a choice to bet on the direction of the market. Nothing requires you to own the football team just to bet on the game. And if every ETF buyer bought physical instead, it wouldn't even be noticed in inventory depletion. Its another excuse invented by the coin and mining industry to conceal the gold glut.

Bay of Pigs's picture

What bullshit. You're spewing nonsense.

Montana Cowboy's picture

Okay. I can have my mind changed. Just give me a counter-argument. By the way, I am a stacker. But I make my money shorting because people subscribe to beliefs that are contrary to facts. Case in point - your post with no counter-argument. You are absolutely sure of something but you can't support it. You can only believe it. If you go into markets with that defect, you might as well just send me your money. The shorts simply know what you refuse to accept. There is a physical glut. Miners and coin dealers are in bankruptcy. This is why shorts are so confident. Paper longs can never overcome that reality of physical glut - and they have had plenty of time to drain supplies at alleged down-rigged fire-sale pricing.

Did it ever occur to you that shorts are mostly bullion banks that actually have the metal? But longs on the other end of every contract are mostly in on margin without the necessary cash reserves to complete the contract and take delivery. Who is rigging the market now? You can make a much better case that the markets are up-rigged by longs with no money than down-rigged by shorts with no metal. If Comex suddenly required every contract to be executed, the shorts could mostly perform and the longs would mostly need to file bankruptcy.

Dragon HAwk's picture

except that the more  fiat that is created, the more sloshing around that can seek permanent storage in a gold physical form.

Montana Cowboy's picture

So with all this excess fiat sloshing around, how come it doesn't deplete the endless gold supply - and at alleged fire-sale pricing yet? Gold should have been depleted long ago.

Give Me Some Truth's picture

Is there a "glut" of paper dollars (or computer digits representing units of dollars)? There would have to be. Never in the history of this country have so many dollars been printed and distributed out into the world. Every month, the government comes up about $60 to $100 billion short in paying for its obligations. It prints more money to make up the difference. It prints more money to distribute to its parnters at the big banks, who give some to the crony companies to buy back their stocks with. There seems to be an infinite supply of dollars and yet somehow dollars are in great demand. There is no infinite supply of gold or silver. Now it's true that far, far fewer people in the West are interested in owning gold than they used to be. But there's a reason for this. The same people who MUST print all the dollars they need know that they must also keep interest in gold and silver at historic lows. They do this by rigging the markets with an assist from the MSM in publishing stories disparaging crazy "gold bugs."  Demand for dollars can be kept high as long as demand for gold and silver is kept low. When it comes to "money," the masses must reject gold and silver (historical money) and embrace fiat currencies backed by nothing real. This is the modern way.

Montana Cowboy's picture

The demand for USD is substantially because people, corps, and countries have debt denominated in USD. They must get their hands on USD or else default. Then there is/was the petro dollar.

The notion of an infinite supply is not useful. Its a matter of supply and demand balances or imbalances. If there are excess dollars, why don't those dollars deplete the gold glut? Even if there is this cartel rigging gold, they wouldn't need to rig it when there is a glut. Market forces will do all the work for them.

And with all this printed money, how come it doesn't find its way to the gold supply? It seems that if gold was down-rigged to fire-sale prices for 20 years, that EXCESS fiat would have purchased it by now. Are you contending that such dynamics were stopped in their tracks by MSM merely ridiculing metals and metal buyers? If that's all it takes to win that war, then every gold bug ought to give up right now. Its hopeless. No, its all caused because there is a glut of gold and the shorts know it.

galant's picture

People are driven to gold because the amount of fiat can be continuously increased and inflated by over-supply. Why does anyone think gold got an exemption from this same dynamic? It didn’t.

 Yes, it has. Fiats can be immediately increased exponentially by banks on political whim. (Compare global money supply with world gold supply since Bretton Woods.)

 It is estimated by the World Gold Council that less than 200,000 tonnes of gold have been mined throughout history, with little consumed by industrial processes. Supply by mining has been at less than 2%.

Money supply divided by gold supply is the more interesting math.

Montana Cowboy's picture

"Money supply divided by gold supply is the more interesting math."

This presumes that gold is money. It also presumes you can determine the real gold supply, which I suspect is many times, perhaps hundred of times, what is currently believed. Regardless of whether or not gold is money, only about 1% of the people subscribe to that notion as evidenced by their behavior. They are no different than any other church that believes everyone else will come to their senses one day and subscribe to the only correct religion - Theirs!

If gold is money, how come I can't buy anything with it without first converting it to fiat? Was gold ever really money? If so, then how come when precious metals were removed from money, the money continued to perform as money and the metals did not?

I will contend that gold/silver are assets that should be regarded as money. Like everyone else here, I wish they were money. And I really think we would all be better off they were money. I have the same aspirations as the rest of you, but I try to stay realistic and I always demand evidence.

galant's picture

“This presumes gold is money.”

That seems to be quibbling about the meaning of words.

Whatever you want to call gold –  commodity, currency, money, wealth or “pet rock”  – the fact remains that it  has been a source of storing wealth since the birth of civilizations.