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Gold Bar Premiums In Asia Rising Again On Physical Demand

Tyler Durden's picture





 

From GoldCore

Gold Bar Premiums In Asia Rising Again On Physical Demand

Gold’s London AM fix this morning was USD 1,652.50, GBP 1,077.11, and EUR 1,296.18 per ounce.

Yesterday's AM fix was USD 1,641.00, GBP 1,063.51, and EUR 1,286.25 per ounce.

All eyes are glued to the European Central Bank’s monetary policy and interest rate announcement scheduled later today.  Gold rose above $1,650 an ounce in Europe on Thursday as the euro climbed against the dollar after a well-received auction of Spanish bonds, but its gains were limited by uncertainty ahead of a European Central Bank interest rate decision later in the day.

Economists polled by Reuters say the ECB will take a breather this month after unleashing back-to-back interest rate cuts, so they can assess the impact of the their actions in the final two months of 2011.  The wording post announcement will be closely watched for any suggestion of further monetary easing, however.

Worries that the Eurozone is still stuck in its debt crisis at a time when the US economy is improving has pressured the euro and lifted euro-priced gold.  Gold in euro terms has outperformed the yellow metal this year, rising 7.4 percent against dollar gold's 5.6 percent.

Demand in Asia continues to be strong.  China remains the world’s largest producer of mined gold.

Premiums for gold bullion bars in Asia are rising again and are at their highest since October in Hong Kong and Singapore. Premiums are at $2.15/oz in Hong Kong and $1.65/oz in Singapore.  Bullion’s strength was also attributed to the euro’s 16 month low, with Fitch warning the ECB to purchase assets to try to stabilize the euro.  

Spot gold was up 0.6 percent at $1,650.34 an ounce at 1009 GMT, having earlier touched a one-month high at $1,652.30. U.S. gold futures for February delivery were up $12.60 an ounce at $1,652.20. 

A stronger rupee has boosted the purchasing power of gold bullion consumers in India.  This is in the run up for the Indian Wedding Season which resumes January 15th and continues until April, leaving a  few weeks break for a period that is considered bad luck for nuptials.  Chinese demand will weaken next week as many factories and businesses are set to close for the Lunar New Year’s celebrations.

Eurozone leaders will come and go but gold cannot be printed like paper money from central banks. Investors here in Europe who have had to survive austerity measures, cuts in social services, rising prices on consumer goods and unemployment are losing faith in the politicians that represent them.  Gold bullion still represents a positive play for any diversified portfolio.     

Silver & Platinum
Demand for silver coins has been strong at the start of 2012, with the U.S. Mint reporting American Eagle silver coin sales of 4.257 million ounces in January, a higher volume than recorded in any of the previous three months.

U.S. Mint gold coin sales have also been healthy at 82,500 ounces so far this month, already 26% higher than in the entire month of December.

Platinum climbed for a fourth day on Thursday, on track for its largest weekly gain since October with a rise of 7%. 

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

NEWS
(Reuters)
Gold steady as Spain auction, ECB meeting loom

(India Reuters)
Gold buying firm as wedding season restarts

(BusinessWeek)
Asian Stocks Fall on Economy Concern; Gold, Europe Futures Climb

(MarketWatch)
Record-high imports from Hong Kong lift bullion; platinum rallies

COMMENTARY
(The Telegraph)
Eurozone waters down its tough fiscal rules in new treaty

(ZeroHedge)
Iran: Oh, No; Not Again

(TheStreet)
Gold-Silver Price Ratio Getting Silly Again

(MoneyWeek)
The Wart on the Skin of Capitalism

(BullMarketThinking)
“There’s Physical Gold and Paper Gold–The Closer You Are to Physical the Higher the Price”

 


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Thu, 01/12/2012 - 08:57 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

Just order...

Thu, 01/12/2012 - 09:28 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Unjust Chaos is more like it, ne?

ori

 

Thu, 01/12/2012 - 09:51 | Link to Comment Fips_OnTheSpot
Fips_OnTheSpot's picture

Oh, i meant: order more bullion ;-)

 

Today high in EUR: 1300.03 (so far)

Thu, 01/12/2012 - 10:32 | Link to Comment GetZeeGold
GetZeeGold's picture

 

No problem......don't we just break out Obama's stash of gold?

Thu, 01/12/2012 - 08:59 | Link to Comment juggalo1
juggalo1's picture

I don't understand Fitch "warning the ECB to purchase assets to try to stabilize the euro".  If the ECB purchases assets, doesn't that mean it is selling Euros?  Doesn't that push DOWN the value / price of the Euro?

Thu, 01/12/2012 - 09:12 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

"assets" covers virtually everything in the world. Depends on what assets Fitch is recommending.

Thu, 01/12/2012 - 09:13 | Link to Comment Eugend66
Eugend66's picture

If the ECB uses USDs things change a bit, right ?

Thu, 01/12/2012 - 09:15 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

If the ECB uses the Yuan to bolster the ESFS things change a lot.

Thu, 01/12/2012 - 09:06 | Link to Comment Troy Ounce
Troy Ounce's picture

 

 

Rabo economists Willem Boonstra making an ass of himself by comparing gold with shells and mirrors and showing no understanding of the fundamentals of gold or gold standards.

http://fd.nl/economie-politiek/columns/wim-boonstra/652626-1201/red-onze... (Dutch)

Thu, 01/12/2012 - 09:18 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

W Boonstra should chew on this for a while...

http://finviz.com/forex.ashx

Gold 1656 and rising in spite of CBs fighting it tooth and nail...

Thu, 01/12/2012 - 10:15 | Link to Comment Dr. Gonzo
Dr. Gonzo's picture

Did he tought the usefullness of wiping your butt with paper money when the govenment issuing it devalues it to nothing? That's always the stongest arguement for proponents of fiat currencies in a debate.

Thu, 01/12/2012 - 09:06 | Link to Comment Oh regional Indian
Oh regional Indian's picture

It's nice to see how may reasons are pulled out to explain moves in a market that is based on 95% manipulation and 5 % fundamentals.

Metal. Mental. hmmmmm....

ori

/world/

 

Thu, 01/12/2012 - 09:13 | Link to Comment Snidley Whipsnae
Snidley Whipsnae's picture

Ori, I'm not sure there are any fundamentals moving the markets. Perhaps it's all manipulation?

Thu, 01/12/2012 - 09:17 | Link to Comment LongSoupLine
LongSoupLine's picture

It's fundamentally manipulated.

Thu, 01/12/2012 - 09:17 | Link to Comment Oh regional Indian
Oh regional Indian's picture

SW, let's give the fundamentals the 1% froth upon 99% manipulation, shall we? But yes....the scale and scope is dazzling.

ori

Sun, 01/15/2012 - 05:46 | Link to Comment BorisTheBlade
BorisTheBlade's picture

No reason to call this sharade 'markets' then, since manipulation is the only fundamental left.

Thu, 01/12/2012 - 09:16 | Link to Comment paulie187
paulie187's picture

ECB is cetainly listening to Fitch they are buying as many Club Med bonds as they can, after all they are assets right? EUR must be solid as a rock.

Thu, 01/12/2012 - 09:18 | Link to Comment s2man
s2man's picture

You mean I get to say it?  Cool

Gold BitcheZ!!

Thu, 01/12/2012 - 09:37 | Link to Comment paulie187
paulie187's picture

ECB is cetainly listening to Fitch they are buying as many Club Med bonds as they can, after all they are assets right? EUR must be solid as a rock.

Thu, 01/12/2012 - 09:53 | Link to Comment Vagabond
Vagabond's picture

"Premiums for gold bullion bars in Asia are rising again and are at their highest since October in Hong Kong and Singapore. Premiums are at $2.15/oz in Hong Kong and $1.65/oz in Singapore."  Am I missing something?  That's nothing.

Thu, 01/12/2012 - 13:38 | Link to Comment DosZap
DosZap's picture

I wonder why they get to pay such CHEAP PREMS when we get bent over?

Thu, 01/12/2012 - 09:56 | Link to Comment westerman
westerman's picture

I am glad I bought gold coins this weekend, I have already made money.

Thu, 01/12/2012 - 10:11 | Link to Comment 847328_3527
847328_3527's picture

Chinese Year of the Dragon ...New Year for them in February so maybe that's why they are buying?

Thu, 01/12/2012 - 10:15 | Link to Comment TGR
TGR's picture

"Chinese demand will weaken next week as many factories and businesses are set to close for the Lunar New Year’s celebration"

What? This is traditionally one of the most strongest gold weeks you are going to get in China, along with October week. The shops are full for that very reason: everyone has time on their hands and millions go out shopping. It's not called golden week for nothing - plus hotels in Hong Kong are virtually full, full of cashed-up mainlanders going down to shop.

Thu, 01/12/2012 - 10:18 | Link to Comment Gordon Freeman
Gordon Freeman's picture

A $2/oz "premium"??  WTF is that supposed to represent?  I love gold as much as anyone here, but these fucking touts just have no credibility whatsoever...

Oh, and can we PLEASE put a fucking bullet in the head of the mythical "Indian Wedding Season"?????

P.S. Let's shoot the fucking "Chinese Lunar New Year", too, while we're at it...

Thu, 01/12/2012 - 10:24 | Link to Comment Pladizow
Pladizow's picture

Take it easy and no!

Thu, 01/12/2012 - 10:36 | Link to Comment TGR
TGR's picture

Chinese New Year demand is not mythical, but based on stats. I wouldn't go round touting is as something that is going to move spot prices to any massive degree though, but it's well known this period now - and during the lunar new year - brings out the physical buyers.

Thu, 01/12/2012 - 13:53 | Link to Comment DosZap
DosZap's picture

TGR

Evidently you have not been following the news, they were on a barn burning tear ass spree, even BEFORE this New Year Crap was mentioned.

When the ACTUAL tonnage owned by the Chinese govt ever get printed, it will make our (mythical) 8100 Metric Non Tons, look like grade school.

The Commies, are using their population to add to their reserves,massively.

SILVER also.

And they will, when the time comes seize it, make them turn it in for paper.

BANK IT>

Thu, 01/12/2012 - 20:05 | Link to Comment TGR
TGR's picture

Yep there has been a steady increase in purchasing in the PRC that rises year-on-year irrespective of new year, I'm just saying the new year demand is not crap, but documented and well known. I do read the news, and I live in China and see it first hand. I'm not Chinese, but have been here donkey's as an expat and speak enough Chinese now to get a good picture of what's going on.

 

Thu, 01/12/2012 - 16:33 | Link to Comment akak
akak's picture

Oh, and can we PLEASE put a fucking bullet in the head of the mythical "Indian Wedding Season"?????

But, but, but, but what would Jon Nadler then ever have to blather on about in his daily gold-bashing, status-quo-defending, pro-bankster diatribes on Kitco?

Well, I suppose he could continue to harp on all those mountains of scrap gold just littering the landscape .... and all those evil, brainwashed "Radical Goldbug Extremists" .... and how it's all up, up, UP for the US dollar, and how all talk of its death is greatly exaggerated (for now) .... and how, of course, it is ALWAYS a good time to be selling gold, and a manifestly BAD time to be buying it .... wash, rinse, repeat.

Thu, 01/12/2012 - 10:43 | Link to Comment proLiberty
proLiberty's picture

At this moment spot gold is $1657.70 and on eBay, I see bids for the following:

 

1)  ending in 34 minutes: one 1OZ US Eagle, $1,766.66.

2) ending in 38 minues: one 1OZ US Eagle: $1,755.00

3) ending in 39 minutes: one 1OZ US Eatle: $1,775.00

Average: $1,765 / 1,657.7 = 6.4% premium

 

 

 

Thu, 01/12/2012 - 10:53 | Link to Comment Gordon Freeman
Gordon Freeman's picture

Tulving will sell you as many PCGS 70 First Strike 1oz US Gold Eagles as you want for $99 over spot (with free shipping)

Ebay PM sellers are a joke...

Thu, 01/12/2012 - 14:13 | Link to Comment DosZap
DosZap's picture

Gordon Freeman

Tulving will sell you as many PCGS 70 First Strike 1oz US Gold Eagles as you want for $99 over spot (with free shipping)

IF you like getting treated like a two bit whore,and ignored or cussed for checking ship dates.

And from a "F" BBB rated company.

Thu, 01/12/2012 - 16:36 | Link to Comment akak
akak's picture

I wonder why this Tulving guy is apparently such a fucking dick --- which I have heard for years now from numerous sources --- or how he manages to stay in business if he is that much of a prick.

If he REALLY is that much of a curmudgeonly SOB, you'd think he would at least get somebody ELSE to answer his phone calls or emails, somebody with, oh, I don't know, a glimmer of a hint of a sense of customer service.

Thu, 01/12/2012 - 20:52 | Link to Comment Magnum
Magnum's picture

You have to buy 20 coins from Tulving so that means Tulving is a dealer's dealer.  You would need $30k++ to place an order.  

My local coin shop has premiums at same as before $55 over for maples, etc.

Thu, 01/12/2012 - 10:50 | Link to Comment prole
prole's picture

Article headline should be noting the fact (true or not I do not know personally) the fact that Hong Kong and Singapore premiums for gold are insanely low.

HK/Singapore Customers enjoy the ability to buy gold at lower premium per ounce than we pay for silver per ounce.  Maybe there's a reason Jim Rogers made the move....

Thu, 01/12/2012 - 11:32 | Link to Comment Nage42
Nage42's picture

Where you getting such a good deal on coins in Singapore?!?  You're not talking about the "gold holding" accounts of UOB and DBS, right?

There's also the 7% tax in Singapore, not so in Hong Kong.

source example:  http://www.silverbullion.com.sg/ShowProduct.aspx?ID=92

Thu, 01/12/2012 - 11:34 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Pssttt Goldcore...

Do you Really think the USA is improving...?

I think they are just getting better at lying,and cover ups.

It's all the same fucking game,man.....

One systemically significant bank (dommino) goes down,they all would,country don't matter.

Called Ponzi,ya know.

Thu, 01/12/2012 - 13:52 | Link to Comment DosZap
DosZap's picture

China remains the world’s largest producer of mined gold

AND purchasers..........................

Thu, 01/12/2012 - 16:01 | Link to Comment falun bong
falun bong's picture

FYI you can now trade gold and silver futures on the Hong Kong market, it's easy: symbol HKG and HKS. And much less worry about criminal funds confiscation by CME/MFG/JPM

Who would have believed that in order to get strong regulation, credible oversight, quality counterparties, and strong enforcement of the rule of law that I would have to go to...COMMUNIST CHINA

Do NOT follow this link or you will be banned from the site!