Asia Buying Gold On Dips - “Empires May Fall, Currencies May Change... Gold Will Always Survive”

Tyler Durden's picture

From GoldCore

Asia Buying Gold On Dips - “Empires May Fall, Currencies May Change... Gold Will Always Survive”

Gold’s London AM fix this morning was USD 1,727.00, EUR 1,302.22, and GBP 1,093.17 per ounce.

Friday's AM fix was USD 1,715.50, EUR 1,295.21, and GBP 1,084.25 per ounce.

Cross Currency Table – (Bloomberg)

Gold opened in Asia nearly $13 higher at $1,734.90/oz (after closing at $1,719.60 on Friday) prior to giving up those gains and trading back near Friday's close at $1,720/oz in early Asian trade.  It then gradually rose back to challenge the $1,734/oz level and is currently in the middle of the range between $1,720 and $1,735 (see chart below).

Traders in Hong Kong say that the Chinese continue to buy gold on any weakness.  Bullion buying from China and the rest of Asia (more below) may have led to the spike higher at the open in Asia.

Risk aversion has increased and stock markets have risen after Greece’s parliament finally approved the austerity bill to secure a second set of loans from the IMF and EU. The move is likely to provide a temporary respite and stave off default and bankruptcy for a while longer.  

The debt deal and austerity measures were met with serious violence in the streets of Athens and elsewhere in the country, as it is deeply unpopular with the public and with much of the body politic.

The EU plans to meet Wednesday to give the final seal of approval on the 130 billion euro bailout.

Gold fell by nearly 0.4% last week – its second marginal weekly fall. This is negative technically but healthy for the gold market as gold appears to be consolidating after the sharp 20% gains seen in January.

Gold Spot $/oz – 2 Days (Bloomberg)

"The Chinese guys are still buying.  Whenever there is a dip in prices, they will buy. There's no change in their attitude," said a physical dealer in Hong Kong, who trades gold bars. "They are still buying today, because I think the downside is limited for the time being. Sentiment has improved a little bit.’’

Market focus tends to be almost solely on Chinese and Indian demand but demand is broad based throughout increasingly important Asian gold markets. Demand for gold remains robust in most Asian countries where consumers are buying gold as a store of wealth due to concerns about their local paper currency. 

This phenomenon is happening throughout Asia including in Malaysia, Indonesia, Thailand and Vietnam and other large Asian countries (see news below regarding demand for gold by investors in Thailand).  

AFP have a very interesting article on Vietnamese ‘gold fever’ which recounts how  “stashing gold at home rather than having cash in the bank is a generations-old habit in communist Vietnam”.

And old habits are dying hard even if an ounce of gold bullion can now cost up to US $100 more in Hanoi than anywhere else in the world due to government meddling in the gold market.

AFP quote 60-year-old retiree Truong Van Hue “I still like to keep my savings in gold. It's safe for retired people like me. I can sell the gold any time, anywhere, when I need cash,” he told AFP.

Although the treasure has long been perceived as a safe haven, the recent gold rush has alarmed Vietnam's government, which is faced with an 18 percent inflation rate and an unstable national currency, the dong.

Vietnam's love of the yellow metal is centuries-old, rooted in a history of strife, warfare and want. "Empires may fall, currencies may change... gold will always survive," said sociologist Vu Duc Vuong. 

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(Bloomberg) -- Gold Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York gold futures in the week ended Feb. 7, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 177,507 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 6,148 contracts, or 4 percent, from a week earlier. 

Gold futures fell this week, dropping 0.9 percent to $1,725.30 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 221,072 contracts, an increase of 11,210 contracts, or 5 percent, from the previous week. 

(Bloomberg) -- Silver Traders Increase Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators increased their net-long position in New York silver futures in the week ended Feb. 7, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 23,587 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions rose by 4,496 contracts, or 24 percent, from a week earlier. 

Silver futures fell this week, dropping 0.4 percent to $33.60 a troy ounce at today's close. Miners, producers, jewelers and other commercial users were net-short 34,650 contracts, an increase of 5,921 contracts, or 21 percent, from the previous week. 

(Bloomberg) -- Speculators Lift Wagers to Highest Since September: Commodities
Hedge funds increased bets on rising commodity prices to the highest since September on mounting confidence that growth in the U.S. will strengthen demand.

Money managers boosted their combined net-long positions across 18 U.S. futures and options by 13 percent to 929,199 contracts in the week ended Feb. 7, Commodity Futures Trading Commission data show. That’s the highest since Sept. 20. Bullish wagers on copper rose to a six-month high, and soybean holdings jumped by the most this year.

The Standard & Poor’s GSCI Spot Index of 24 commodities rose to a six-month high on Feb. 9, a day after the MSCI All- Country World Index entered a bull market, as indicators signaled accelerating growth. Fewer Americans than forecast filed claims for jobless benefits in the week to Feb. 4, and consumer confidence rose to a one-year high. Investments in commodities expanded for a seventh week, the longest streak since February 2009, data compiled by Bloomberg show.

“The improving economic data, not just in the U.S., we’ve seen better data in Europe as well, has put recession fears on the back burner,” said Anthony Valeri, a market strategist with LPL Financial in San Diego, which oversees $330 billion of assets. “That augers well for commodity demand.”

Silver Rally
The S&P GSCI gauge rose 1 percent last week. The number of futures contracts on 24 commodities from oil to copper rose 0.8 percent, extending this year’s expansion to 13 percent. The MSCI index of equities ended the week down 0.4 percent, and the yield on 10-year Treasuries rose 6.4 basis points, or 0.064 percentage point, according to Bloomberg Bond Trader prices.

Seventeen of the raw materials tracked by the S&P GSCI gained this year, led by a 20 percent advance in silver. Zinc jumped 13 percent and copper climbed 12 percent.

(Bloomberg) -- Gold to Peak, ‘Challenge’ $2,200 in 2012, Societe Generale Says
Gold will “challenge” $2,200 an ounce by the end of this year as it peaks, Societe Generale SA said in a cross asset research report e-mailed today.

“Global liquidity, negative real interest rates and persistent fears over fiat currencies as a whole will boost investment at all levels,” the bank said. “Even when the sovereign debt issues have been resolved in Europe, inflation will by then be an important issue.” 

(SET News) -- Thai bourse sees Gold ETFs as opportunity for investment
The Stock Exchange of Thailand (SET) confirms that trading prices of all four gold exchange-traded funds (ETFs) listed on SET are efficiently in line with gold prices in the global market and their net asset values, and the exchange also assures investors of its surveillance system. "The gold ETFs have proven very attractive for domestic investors since they listed on SET late last year, with a combined trading valuation of THB 6.52 billion (approx. USD 210 million) in 2011, because the instrument is an innovative financial tool well-designed to meet investor demand for gold trading. The SET-listed ETFs enable investors to buy or sell at any time during exchange trading hours and provide real-time indicative net asset values (iNAVs), unlike general gold funds. There is also no currency risk as the ETFs are traded in the Thai baht currency," said Pakorn Peetathawatchai, SET's Chief Marketing Officer.

Prices of gold ETFs listed on SET have tracked those of gold prices in the global market and trading prices are usually in line with gold fund's NAVs because leading gold brokers have participated as market makers. Consequently, investors have the opportunity to get returns similar to those from trading in physical gold without worries over the storage of gold, and can be assured by SET's settlement and market surveillance systems.

Silver is trading at $33.83/oz, €25.51/oz and £21.40/oz. 

Platinum is trading at $1,657.50/oz, palladium at $695/oz and rhodium at $1,500/oz. 

PRECIOUS-Gold rises on Greek austerity bill, off 2-week low‎

(The Sydney Morning Herald)
Gold gains on Chinese buying

(Reuters via Sharenet)
Shanghai Gold Exchange eyes OTC trade via interbank market

(Agence France Presse)
Vietnam battles 'gold fever' as price soars‎

Sudan central bank ups dollar supply after gold sale

Brimelow: Gold breaks on cue — is rebound coming? 

(The Telegraph)
Iran presses ahead with dollar attack

(The Telegraph)
Britain's extreme QE is dangerously counter-productive

(Max Keiser)
Keiser Report: FBI vs Gold Standard ‘Extremists’

Whither Gold

(Business Insider)
Mauldin: The Truth Is It Doesn't Matter Who's President -- We'd Be Screwed Regardless

(True Economics)
Gurdgiev: Few Thoughts on the Global Policy Crisis

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Gene Parmesan's picture

So they're having inflation issues with the dong?

HD's picture

Yes. Inflation is causing a ding in the dong.

GetZeeGold's picture



Benny prints dollars.


Benny takes said dollars and forces gold down.


Asia buys subsidized gold and says.....thank roo.


Am I missing something here?


Don't think so Dingdongs. Thanks for the cheap gold Benny!


Gold....the greatest arbitrage play of the last 5000 years.



Badabing's picture

Man, last nights open was really weird. On the Asian open the paper price immediately plunged $22 before the algorithms kicked in. If I didn’t know any better “along with the CME lowering the margin requirements and the MF global rip-off”, I believe that the paper market for gold and silver is crashing.

The  end is near, got phys.?


What, I think the Ponzi paper game is coming to an end and you give me a down?

Do you work for JPM?



Au Shucks's picture

Huh?  You have it completely backward!   check out and look at the gold chart from last night (not the daily chart, but the chart that has the last 3 trading days graphically displayed).  You'll clearly see a huge spike in gold up to almost 1760 and then an immediate take down back to opening levels.

Where do you get the plunge you referred to?


EDIT:  Just checked and they've removed the blip, but fortunately I copied it before b/c they're known for doing this:

If anybody can tell me how to paste an image, I'll post the graph.  I've tried a few ways, but ZH doesn't seem to allow it.



Zaydac's picture

Aw shucks - You got it. That blip up was there. I pointed it to an old friend who runs a junior and was staying with me last night. Then a few hours later it was gone. And yes, Kitco does do this. 

You can't post images here unless Tyler decides to grant you privileges. You can put your screen print on and put a link here. That will work.

AUD's picture

Yes, the dong is inflating

francis_sawyer's picture

I happen to be long dong at the moment (often happens in the morning)

I usually go short right after the cold shower...


HD's picture

Go Long dong and buy silver...

achmachat's picture

sometimes when in China and I introduce myself, I say that my Chinese name is "Dragon Lamp"    (yes... that's Long Dong...)

falak pema's picture

I hope room service arrives before shower, like for DSK.

LongSoupLine's picture



Sun Tzu...period.

For to win one hundred victories in one hundred battles is not the acme of skill. To subdue the enemy without fighting is the acme of skill.
_underscore's picture

Yes, I believe it's swinging wildly

engineertheeconomy's picture

problem with the chinese dong is that it's tied to the dollar dong. all paper will be completely worthless in about 6 months to a year anyways. say goodby to gas stations and grocery stores

GeneMarchbanks's picture

BTFD (Vietnamese Edition)

Rakshas's picture

...err....Gold Bitchez

HD's picture

It's sad that the poorest of the poor understand Gold is money, yet the all powerful Fed believes gold is a mere trinket.

AE911Truth's picture

...the all powerful Fed wants you to believe gold is a mere trinket.

Fixed that for ya.

Dorky's picture

Nationalize the Federal Reserve and make it publicly owned.

That's the only solution to American debt problem.

Chief_Illiniwek's picture

This country has a debt problem?


Say, did you see the Grammys last night...

riphowardkatz's picture

Great idea. We need Harry and Nancy in charge of the fed. That should solve everything.

End the fed. Free banking. 

Separation of economics and state. 

midtowng's picture

The question is when my miners will finally recover?

I'm not worried about my gold. It'll take care of itself. My miners are the ones who need help.

HD's picture

Over the years I've had much better luck with just buying the GLD - the miners are a crap shoot. Any little problem and they tank.

Badabing's picture

What we need is a miners union.

Miners Nationalize! Er, I mean unite.

Dorky's picture

Which planet are you from?

Who cares about your miners?

Nobody cares about anyone here on earth.


Absinthe Minded's picture

I Long Duck Dong, who you?

Big Slick's picture

No more yankee my wankee... the Donger need food!

LookingWithAmazement's picture

Is that epic Comex crash gonna come anytime soon?

_underscore's picture

..yes, when the PAGE of history turns.

NoClueSneaker's picture

.... there are 21 PDs more to go. JP Morgue will corzine them, and with the stolen customer deposits, with some leverage, the can kickin' can still go on for awhile ..... 

 Comex still there - transitory ... :-P

thorgodofthunder's picture

Nice Monday morning gold propoganda post. Way to pump the fuedal relic some more.

Zero Hedge reminds me a bit of that old Trident gum commercial:

"4 out of 5 Zero Hedgers recommend Gold for blind sheep herd following conspriacy theorists who chew conspiracy theories and live in bomb shelters constructed in their parents basements"

Shameful. The pump will continue, following of course by the liquidation that will punish most here.

_underscore's picture

I see fiat currency as the fuedal relic - what better to tool to oppress the 'peasants' - as we see right now. It really is glowing green kryptonite for bankers.

GetZeeGold's picture



Yeah....the rumors are true....peak paper.....all due to climate change.

Overflow-admin's picture

"climate change" -> Wasn't that "climate warming"???


Oops, climategate2.0, etc. Warmists busted all around...


P.S. Model Forecast is Scarfetta's forecast, not IPCC's.

GetZeeGold's picture



Oh.....look who's Mr. Freakin Observant.



engineertheeconomy's picture

The big boyz are freaking out. They're losing control. They haven't a clue as to how to deal with the mess they've gotten themselves into. Their fucked no matter what they do and they know it. Wiggle wiggle wiggle wiggle wiggle

TruthInSunshine's picture

Gold. Good luck with that. I'm sure it tastes great and is packed with minerals and vitamins.


gnom, gnom, gnom, gnom

<Eating Euros and Federal Reserve Notes>

Archon7's picture

Paper?  Paper is so yesterday...  today's big thing is numbers on a comptuer screen.  You can't even wipe your ass with your computer screen.

thorgodofthunder's picture

"I see fiat currency as the fuedal relic"

You mean money?  Well, money buys you a cup of coffee at Dunkin Donuts and there's no storage costs or commissions on sale.  How about your nuggets?  Think you've made a profit?  Try selling when you and your herd really need the money.

_underscore's picture

But, thorgodofthunder, the 'storage cost or commission on sale' is inflation (coupled with a fee attracting current/checking account - or at very best, a miserly deposit account paying a -ve real interest rate), so merely being 'overweight'  in fiat incurs that cost.

 I don't have a day-trader/ short term attitude to returns, but I do need my money off the table with only market forces on commodity price risk associated. I also day trade (though not so much these days..) & see the above costs   PLUS counterparty risk with equities (as you impute for gold)  - even total capital extinction is possible. Genuinely, if I could find any way to simply stay even-stevens, vis-a-vis inflation & counterparty risk/manipulation/insider info etc, I'd take that. Unfortunately, I don't see that existing for a non-banker/ non-insider / non-1%-er like me.

It does bemuse me somewhat, that the assumption (if you hold gold) is that you don't use fiat money at all anymore & walk around with a pocketful of fractional ounce gold coins bartering for groceries - of course not!

 Does a commodities trader / investor etc., try to buy  lunch with a bushel of corn or an AAPL share?

Your final point re trying to sell in extremis - well, I try to arrange my affairs so that I can liquidate at my time of choosing, not be stampeded into selling -as you try to do with any investment - but of course, that's always risk as with anything at anytime.

The 'feudal relic' aspect of fiat currency, imho, is the counterparty risk (the ability of the fiat creators to determine its worth) of allowing TPTB to reach into your pocket at any time of their choosing without your explicit / implied consent  to take away that stored value. When that sleight of hand is as easily accomplished as tagging an extra zero or two (or ten) onto a CB's balance sheet - at will - well, I've done my math & risk analysis, thank-you very much.




Archon7's picture

Hold that thought, and we'll ask you this question again when you need a shopping cart full of 100-dollar bills to buy a gallon of milk, a loaf of bread, and a dozen eggs...

chinaguy's picture


LMOA... as if ZH's posts move the fucking 13 week old troll.

Au Shucks's picture

Ben?  is that your well manscaped bearded face under that bag?

Archon7's picture

HAHAHAha... oh, man, thanks for the gut laugh.   -2 for cluelessness, +1 for making me laugh = -1

yabyum's picture

Thor, Keep your faith in your dong and dollar then!

ConspiracyTheory's picture

Gold is in topping formation for months and this article might just mark the turning point. Just like that "now is the best time to short china" article in January of this year marking the bottom in shanghai index (bet those people shorting at that time lose their shirt already)

riphowardkatz's picture

topping pattern formation for months sound similar to a base forming pattern for months to me.

Aquarius's picture

Gold's value is intrinsic: it is the only Absolute that humanity recognises; it is innate in all men.

Gold (and Silver) represent the confidence in governance or more correctly, those elite that have control of governance.

Gold never changes in value. Only confidences change and essentially, this change is brought about by the abuse and manipulation of values wrought by those elite of governance.

The expression/tools of governance are the fiat currencies. Today, they are all done. There is only one Universdal known to mankind: it is Gold and Silver bullion.

Humanity does not need yet another violent revolution as such makes things worse; we need an intellectual revolution - Une force tranquille.

The intellectual revolution has begun and its carrier is the Internet. It is the only tool that we, the unwashed have. Do not allow the Internet to be usurped by the elite incompetants and corrupt. You do not want to go here!

It is all about natural physics (physis) and Universal Principles and standards. But, we know of no Universal Standard.


Gold (and Silver) is a hedge to survive the impending Dark Age. The more that buy Gold and Silver (like the Chinese and Indians) the shorter the Dark Age - it will be demographically expressed!

Asians ("Gold Bugs"), make up ~3/4 of the global population.

Who is right?