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Chinese Gold Imports From Hong Kong Rise Nearly 13 Fold – PBOC Likely Buying Dip Again

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From GoldCore

Chinese Gold Imports From Hong Kong Rise Nearly 13 Fold – PBOC Likely Buying Dip Again

Gold’s London AM fix this morning was USD 1,654.00, EUR 1,261.63, and GBP 1,040.25 per ounce. Yesterday's AM fix was USD 1,643.75, EUR 1,255.92 and GBP 1,037.72 per ounce.

Silver is trading at $31.66/oz, €24.08/oz and £19.87/oz. Platinum is trading at $1,591.50/oz, palladium at $636.30/oz and rhodium at $1,350/oz. 

 
Cross Currency Table – (Bloomberg)

Gold climbed $17.70 or 1.2% in New York yesterday and closed at $1,659.00/oz. Gold gradually ticked lower in Asian trading prior to tentative gains in Europe and is now trading around $1,655/oz. 

Gold's 1.2% gain yesterday was the largest since March 26 and its four sessions of gains is the longest winning streak in two months.


XAU/CNY (Renminbi or Yuan) Monthly Chart – Bloomberg

A positive sign for gold was that US COMEX futures volume was the strongest in a week and gold rose despite a sharp 1.5% drop in the S&P 500 and other equity indices and a large fall in crude oil and grains.

Gold appears to be catching a breather today and is taking a break after the four sessions of consecutive gains driven by safe haven flows on a cloudy global economic outlook.

Gold’s proven safe haven attributes were clearly seen again yesterday as the sharp bout of risk off in international markets saw gold again have an inverse correlation with riskier equity and commodity markets. 


SHANGHAI SE A SHARE INDEX – 2002- Today

Markets continue to digest the very poor US employment number which has led investors to again question the rose tinted view of the US economic ‘recovery’.  

The Fed’s beige book will be released at 18.00 GMT.  Investors will also watch the European government debt market, after Italian and Spanish debt was met with decreased demand due to shaky euro zone economies and renewed contagion concerns.

Chinese Gold Imports From Hong Kong Rise Nearly 13 Fold – PBOC Likely Buying Dip Again 

Chinese gold demand remains very strong as seen in the importation of 40 metric tonnes or nearly 40,000 kilos of gold bullion from Hong Kong alone in February.

Hong Kong’s gold exports to China in February were nearly 13 times higher than the 3,115 kilograms in the same month last year, the data shows. 

Shipments were 72,617 kilograms in the first two months, compared with 10,564 kilograms a year ago or nearly a seven fold increase from the record levels seen last year.

China’s appetite for gold remains strong and Chinese demand alone is likely to put a floor under the gold market.


Reuters Global Gold Forum

Mainland China bought 39,668 kilograms (39.668 metric tons), up from 32,948 kilograms in January, according to export data from the Census and Statistics Department of the Hong Kong government. 

Demand has picked up again after the Lunar New Year and demand has climbed in China as rising incomes and concerns about inflation lead to store of value buying. 

There is also a concern about the Chinese stock market which has gone sideways since 2001 (see chart) and increasing concerns that various property markets in China look like bubbles ready to burst.

Consumer demand for gold beat India for the first time in almost three years in the fourth quarter and China may replace India as the biggest buyer annually this year. 

The massive gold purchases may signal the People’s Bank of China is continuing to secretly accumulate gold reserves. 

Reuters report that there are suspicions that the number could include purchases from the public sector, as the market was largely quiet during a post-Lunar New Year holiday slump in February. "On the public level, China's central bank will continue to accumulate gold, which is easier than liberalising their capital account and currency," said Friesen of SocGen, adding that building gold reserves would help China's push to turn the renminbi into a global currency. 

Accommodative monetary policy will remain an incentive for private investors to buy into gold, he added.

The nation last made its reserves known more than two years ago, stating them to be 1,054 tons.

The PBOC’s gold reserves remain small compared to those of the Federal Reserve and many European nations.  Their gold reserves remain tiny when compared to their massive foreign exchange reserves of $3.2 Trillion.

It is important to note that in past years, Hong Kong gold imports have accounted for about half of China's total gold imports. China itself doesn’t publish gold import data and the very high and increasing demand from Hong Kong is only a component of overall Chinese demand.

The per capita consumption of 1.3 billion people continues to increase from a near zero base meaning that this is indeed a paradigm shift and not a blip or ‘flash in the pan’.

It means that gold will likely see record nominal highs - possibly before the end of the year.

Prudent western buyers wishing to protect and grow wealth will again buy gold on the dip as the Chinese are doing.  

For breaking news and commentary on financial markets and gold, follow us on Twitter.

OTHER NEWS 
(Bloomberg) -- China’s Feb. Gold Imports From Hong Kong 39,668 Kilograms
Hong Kong government announced Feb. gold exports data on its website. 

(Bloomberg) -- Russia’s FinEx Plus Plans Gold Exchange Traded Product This Year
Asset Management Co. FinEx Plus LLC plans to start a gold exchange traded product in Moscow and expand that to other commodities this year.

FinEx is in negotiations with the Micex-RTS exchange in Moscow to list the gold product, said Evgeny Kovalishin, general director. FinEx is partly owned by Andrei Vavilov, Russia’s former first deputy finance minister, according to Kovalishin. 

(Bloomberg) -- Raw Materials Group Sees Gold Averaging $1,775 an Ounce in 2012
Gold will average $1,775 an ounce this year, 13 percent more than in 2011, Raw Materials Group said in a statement today.

Silver will drop 6.3 percent to an average of $33 an ounce, platinum 1.1 percent less at $1,700 an ounce and palladium 2.9 percent lower at $710 an ounce, RMG said.

NEWS
Gold pauses after 4-day rally; investors turn cautious - Reuters

Gold futures retreat in electronic trading – MarketWatch

European stocks stage tentative recovery – Financial Times

Sovereign bonds ‘most overvalued asset’ – Financial Times

COMMENTARY
Was That The Bottom In Gold? – MarketWatch

Price Manipulation in the Gold and Silver Market - RT

JPM’s TV Appearance - Silverseek

Spain’s crisis exposes limits of ECB help – Financial Times

Economist’s Bishop On Concerns Re Paper Currencies and Gold - MSNBC

 


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Wed, 04/11/2012 - 08:01 | Link to Comment PaperBear
PaperBear's picture

40 ton of gold imported into China in February, hasn't piece of news already been published ?

Wed, 04/11/2012 - 08:18 | Link to Comment Colombian Gringo
Colombian Gringo's picture

Can't say, but Gold demand remains very strong. The Chinese invented paper money, and they know how the game will end, in tears for the suckers holding notes.

Wed, 04/11/2012 - 09:14 | Link to Comment Clint Liquor
Clint Liquor's picture

 

The Chinese invented paper money

That's right, and when Marco Polo showed it to the Europeans (who had never seen anything but Gold and Silver money) they asked 'why would anyone accept a piece of paper as money just because it had the Emperor's stamp'? Marco Polo replied ' if you do not accept it, the Emperor will have your head cut off and placed on a stake in front of your house'. The first Legal Tender Law.

Wed, 04/11/2012 - 14:28 | Link to Comment PayneNita
PayneNita's picture

my classmate's sister makes $62 hourly on the laptop. She has been unemployed for 5 months but last month her pay check was $13843 just working on the laptop for a few hours. Read more on this web site ....  http://bit.ly/FPPP3j

Wed, 04/11/2012 - 18:21 | Link to Comment DosZap
DosZap's picture

PayneNita

Are you the one helping to pass that F*****G spam email  virus with this bogus BS???.

Good thing I do not know who you are. We could have a friendly chat.

Cause your in need of a LOT of  Payne, ...............After the SOB is opened it mails it to all your contacts, and then theirs.

This POS should be BANNED!!!!!!!!!!!!!

Wed, 04/11/2012 - 18:30 | Link to Comment DosZap
DosZap's picture

2

Wed, 04/11/2012 - 08:33 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Gold Litchez!

 

Wed, 04/11/2012 - 08:03 | Link to Comment battle axe
battle axe's picture

China getting ready for the big pop of their real estate bubble...

Wed, 04/11/2012 - 08:03 | Link to Comment Mitzibitzi
Mitzibitzi's picture

Is this all physical they're buying, or is some of it merely on paper?

Wed, 04/11/2012 - 08:47 | Link to Comment Badabing
Badabing's picture

If its 40 tons of paper thats all the gold in the world.

Wed, 04/11/2012 - 09:55 | Link to Comment Thomas
Thomas's picture

Was wondering if India's stalled imports due to strikes and China's ramping up of purchases might be affliated with a third leg of a stool--heavy paper gold sales (without profit motive)--to somehow satisfy some need--some geopolitical payback--to provide China with cheap gold.

Wed, 04/11/2012 - 18:03 | Link to Comment DosZap
DosZap's picture

Is this all physical they're buying, or is some of it merely on paper?

The Chinese are not stupid like our people are, its IN THE HAND.They are plannig to have a minimum of 8100 Metric tons, or 11k Metric tons,maybe more..................they are shooting for backing the Yuan at least partially w/Au, so they can take the Reserve currency wand.

Wed, 04/11/2012 - 08:04 | Link to Comment bernorange
bernorange's picture

Price goes down, demand goes up?  Brilliant.

www.pmbug.com

Wed, 04/11/2012 - 08:07 | Link to Comment e_goldstein
e_goldstein's picture

Right. It almost resembles a free market, doesn't it?

Wed, 04/11/2012 - 08:29 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Benny throws hot QE cash on the gold short side......first government program that's ever worked for me.

 

Thx Benny!

 

Wed, 04/11/2012 - 08:08 | Link to Comment juggalo1
juggalo1's picture

Who cares how much gold mainland China imports from Hong Kong?  They are under one government, so it's basically an internal transfer.  How much net gold was imported by China?

Wed, 04/11/2012 - 08:08 | Link to Comment tocointhephrase
tocointhephrase's picture

There is a valid point here TD!

Wed, 04/11/2012 - 08:15 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Juggalo1... Why don't you ask the Fed/Treasury how much physical gold they are holding? ... Gold inventories; Secrets as closely held, or more so, than nuke secrets.

Wed, 04/11/2012 - 18:10 | Link to Comment DosZap
DosZap's picture

Snidley,

Why don't you ask the Fed/Treasury how much physical gold they are holding?

Its obvious they are holding NONE, if they were it would not be such a Taboo topic.............face it, that 8100 Metric Tons is GONE.

Wed, 04/11/2012 - 08:10 | Link to Comment ZippyBananaPants
ZippyBananaPants's picture

So Alcoa is back to where it was last week Wednesday? 

 

Wow, strong showing, I gotta have some of that, best of the best!

 

Why are people such idiots?

Wed, 04/11/2012 - 08:50 | Link to Comment Badabing
Badabing's picture

The only aluminum I will buy is foil for my hat!  

Wed, 04/11/2012 - 08:12 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

The movement of real wealth sans counterparty risk, gold, continues to flow from West to East...

When the BRICS debut their new common currency I doubt it will be a purely fiat currency... probably to be backed by a basket of commodities... gold included.

Wed, 04/11/2012 - 08:18 | Link to Comment Quinvarius
Quinvarius's picture

The ponzi lords insist that they are getting bargin selling gold to foreigners for the same pieces of paper they print endlessly.

Wed, 04/11/2012 - 08:14 | Link to Comment Dick Darlington
Dick Darlington's picture

OT:

     April 11 (Bloomberg) -- A Pennsylvania man who admitted his
role in a $17.6 million Ponzi scheme that defrauded 260
investors was sentenced to more than 33 years in prison by a
federal judge.
     Robert Stinson Jr., 56, of Berwyn, pleaded guilty last year
to 26 charges, including wire and mail fraud, money laundering
and bank fraud, according to U.S. Justice Department officials.
     “Stinson ran a company called Life’s Good Inc., that
solicited investments in one of four real estate hedge funds,”
promising returns of as much as 16 percent, according to a
statement from the U.S. Attorney’s office in Philadelphia.
     U.S. District Judge Michael Baylson yesterday also ordered
Stinson to pay $14 million in restitution.
     Officials said Stinson used some of the proceeds to buy two
Mercedes-Benz sedans, and falsely told investors he was a
graduate of Massachusetts Institute of Technology.
      The case is U.S. v. Stinson, 10-cr-00724; a related
lawsuit is Securities and Exchange Commission v. Stinson, 2:10-
cv-3130, both in U.S. District Court, Eastern District of
Pennsylvania (Philadelphia).

 

17 million ponzi and guy gets 33 year in the can. What abt the PhD's who run the current multi trillion dollar ponzi schemes?

Wed, 04/11/2012 - 08:46 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Works out to about a half million a year......not bad actually.

 

Wed, 04/11/2012 - 08:55 | Link to Comment Badabing
Badabing's picture

The Securities and Exchange Commission is the junk yard dog!

The real question is who owns the junk yard?

Wed, 04/11/2012 - 10:09 | Link to Comment SHRAGS
SHRAGS's picture

Can't have "wild type" competition threatening the greatest ponzi scheme ever...

Wed, 04/11/2012 - 10:58 | Link to Comment Clowns on Acid
Clowns on Acid's picture

Using this case as a precedent...($17MM - 33 years) I wonder how mnay years Jon Corzine will get ?

Wed, 04/11/2012 - 15:13 | Link to Comment UP Forester
UP Forester's picture

No time.  It was vaporized along with the segregated funds.

Wed, 04/11/2012 - 08:17 | Link to Comment EL INDIO
EL INDIO's picture

It looks like in November 2011 they imported about 100tons…

Fuck, the Chinese panda eats a lots of Gold !

(Unlike the Muppets who prefer paper !)

Wed, 04/11/2012 - 08:59 | Link to Comment Badabing
Badabing's picture

Don’t forget that China is one of the biggest gold mining countries in the world and only exports paper gold. That 1050 ton national gold reserve is probably double by now!

Wed, 04/11/2012 - 08:16 | Link to Comment apberusdisvet
apberusdisvet's picture

True price discovery will come from Asia, certainly not from CRIMEX.  Even though PAGE got co-opted by the cartel, a new Chinese exchange will open within a year; bet on it.  The Chinese are obviously going balls to the wall on gold, even to the extent of buying production from miners in South America and South Africa.

Wed, 04/11/2012 - 08:20 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

IMO... PAGE was squashed by the Chinese Gov to prevent another CRIMEX from opening shop in China.

The shady characters behind PAGE were the same crooks that run CRIMEX.

Wed, 04/11/2012 - 08:17 | Link to Comment Sudden Debt
Sudden Debt's picture

GREAT JOB BERNIE!!! NOW SELL THEM THE STATUE OF LIBERTY FOR THE PRICE OF 50$ TO COMPLETE THE DEAL!

 

Wed, 04/11/2012 - 08:48 | Link to Comment cowdiddly
cowdiddly's picture

Don't tempt them its made of copper and they are stockpiling that to. Rare earths anyone?

Wed, 04/11/2012 - 10:06 | Link to Comment uno
uno's picture

Homeland security has Statue of Liberty imprisioned for domestic terrorism

Wed, 04/11/2012 - 08:21 | Link to Comment youngman
youngman's picture

They are also buying gold miners around the world....they want the real stuff for their new reserve currency that will be announced when theydeem they have enough to do so.....and yes they will buy the real stuff on dips...as we play with our paper over here...until we can´t anymore....that is when they will announce the new reserve currency

Wed, 04/11/2012 - 09:14 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Youngman... Yep...

Wed, 04/11/2012 - 12:51 | Link to Comment _underscore
_underscore's picture

Yep +

The 'tightrope' the Chinese need to walk is not to spook other holders (or general market) of US$ reserves whilst thet hoover up all the real assets with their US$ reserves/bonds.

It's as plain as the wart on my nose.

I'm not sure they will have to announce an alternate reserve currency so much, just build bi (and multi) lateral trade agreements until the emperor's new clothes moment arrives, wrt holding US$ assets

Wed, 04/11/2012 - 15:42 | Link to Comment Winston Churchill
Winston Churchill's picture

What's going to be the excuse for going to war with China ?

Got to be a candidate ,does their Gold need liberation perhaps ?

Wed, 04/11/2012 - 08:30 | Link to Comment Bullwinkle Moose
Bullwinkle Moose's picture

Assuming China is importing gold at these very large numbers, where is all of this physical gold coming from? Somebody must be exporting the same amount.

Wed, 04/11/2012 - 08:35 | Link to Comment Sudden Debt
Sudden Debt's picture

In Fort Knox they have this machine that turns 1 ounce gold coins into 100 ounce gold coins.

Pretty Amazing actually!

 

This is a movie about that machine!!! :

www.youtube.com/watch?v=VdlLBWymnUA

Wed, 04/11/2012 - 08:40 | Link to Comment Winston Churchill
Winston Churchill's picture

One ounce of Gold into 100 ounces of Tungsten I believe !

Wed, 04/11/2012 - 08:32 | Link to Comment Nozza
Nozza's picture

From the Telegraph - $2000 by the end of the year according to Thomson Reuters GFMS

http://www.telegraph.co.uk/finance/personalfinance/investing/gold/919741...

Don't forget

http://en.wikipedia.org/wiki/Lifejacket

In case of the inevitable boating accident ;)

Noz

 

Wed, 04/11/2012 - 08:45 | Link to Comment JustObserving
JustObserving's picture

China has lots of money from its real estate bubble to buy gold.  All the gold bullion available in the world is worth about $3.3 trillion which is tiny compared to real estate values in China:

"An article in China Economic Weekly on January 25 pointed out that the average real estate price in Beijing in 2010 had reached about 8,000 yuan per square metre. With a total land area of 16.41 billion square metres, the value of land in Beijing was 130 trillion yuan, or $US19.85 trillion, significantly higher than the US gross domestic product of $14.5 trillion in 2010. “That means the land value in Beijing is more than enough to ‘buy up America’,” the article stated.

 

Together, the land values of Beijing and Shanghai last year were 199 trillion yuan ($30.3 trillion), which is greater than the combined GDPs in 2009 of the world’s five largest developed economies—US, Japan, Germany, France and Britain."

http://wsws.org/articles/2011/jan2011/chin-j31.shtml

Wed, 04/11/2012 - 09:04 | Link to Comment Sudden Debt
Sudden Debt's picture

Yes, but in Beijing, the slaves living on your ground become your property and you can do with them what you want. So if you ever wanted your own sweat shop, Beijing is the place to be!!

Wed, 04/11/2012 - 12:19 | Link to Comment rufusbird
rufusbird's picture

I was visiting the gift shop in a government owned "Museum" in a very rurual area outside of Beijing. I asked the young chinese woman who helped me what she did on her days off. She said, "Days off? we don't any days off. Sometimes we get a half day to shop and do cleaning."

Wed, 04/11/2012 - 09:47 | Link to Comment Ted Baker
Ted Baker's picture

RUMOUR HAS IT:- EQUITY SELLOFF UNDERWAY (10%+ OVER NEXT 2-3 DAYS) LEADING BY FINANCIALS BUT A HUGE SPIKE IN GOLD DUE TO STRONG BUYING FROM CHINA

Wed, 04/11/2012 - 10:02 | Link to Comment xela2200
xela2200's picture

Where did you get that rumor from Mr. CAPS?

Wed, 04/11/2012 - 11:00 | Link to Comment Clowns on Acid
Clowns on Acid's picture

This article is so weird....I mean why would the Chinese want to buy gold? Bernanke says that gold is not a currency.

And we all know that Ben has a PhD from Princeton and really really knows what he is doing. I mean just ask Bobby Brusca, Steve Liesman, or any other financial expert.

Sheesh....

Wed, 04/11/2012 - 11:07 | Link to Comment MFL8240
MFL8240's picture

The US is buying more junk paper and listening to a communist stump the country while we are getting our lunch handed to us by the east.  Wake up fool!!

Wed, 04/11/2012 - 12:35 | Link to Comment silverserfer
silverserfer's picture

the real question is what is the monthly import of raw jade into china. that is their true precious.

Wed, 04/11/2012 - 15:27 | Link to Comment hungarianboy
hungarianboy's picture

Gold is going to colapse. technicals show buying gold to risky. Bunch of bag holders.

Wed, 04/11/2012 - 18:33 | Link to Comment DosZap
DosZap's picture

Gold is going to colapse. technicals show buying gold to risky. Bunch of bag holders.

 

And what is your reccomendation as something that will retain value to take its place?.

Enquiring minds want to know.

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