This page has been archived and commenting is disabled.

Gold Down As China Tightens Controls

Tyler Durden's picture




 

It appears the PBoC is stepping up the monitoring and management of their gold reserves. Headlines, via Bloomberg, suggest controls tightening on the trading of gold away from official channels:

*CHINA TO INCREASE MANAGEMENT OF GOLD TRADING, PBOC SAYS

*CHINA GOLD TRADING RESTRICTED TO SHANGHAI EXCHANGES, PBOC SAYS

*CHINA ORDERS UNAUTHORIZED GOLD TRADING PLATFORMS TO STOP: PBOC

*PBOC ASKS SHANGHAI GOLD, FUTURES EXCHANGES TO BOOST MANAGEMENT

Exchanging gold away from the all-seeing eye of government will not be tolerated...or perhaps it is just proper regulation and safeguarding of a rural public anxious to 'trade' their precious metals for Shanghai Condos...

Chart: Bloomberg

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 12/27/2011 - 04:45 | 2012833 Scirocco
Scirocco's picture

Silver bitchez...

Tue, 12/27/2011 - 04:48 | 2012834 non_anon
non_anon's picture

BTFD!

Tue, 12/27/2011 - 05:20 | 2012868 natty light
natty light's picture

BTFG

Tue, 12/27/2011 - 08:15 | 2013070 GetZeeGold
GetZeeGold's picture

 

 

Well......looks like we're f_ckin doomed amigos. Don't throw me in that briarpatch.

Heh heh.

 

 

Tue, 12/27/2011 - 04:50 | 2012836 onebir
onebir's picture

"It appears the PBoC is stepping up the monitoring and management of their gold reserves."

Isn't this all about privately held gold, not reserves (which presumably the PBoC has in various vaults)?

Tue, 12/27/2011 - 04:53 | 2012841 Peter_Griffin
Peter_Griffin's picture

Gold and silver bitchezz!!  Shove it up your ass and smell your fingers if you're hungry!!

Tue, 12/27/2011 - 04:55 | 2012847 Scirocco
Scirocco's picture

Smells chocolate... might have eaten too much of it... Happy holidays BITCHEZ

Tue, 12/27/2011 - 06:49 | 2012937 TheFourthStooge-ing
TheFourthStooge-ing's picture

Be sure to remove the ass pennies first.

http://www.comedycentral.com/videos/index.jhtml?videoId=60669

 

Tue, 12/27/2011 - 05:04 | 2012861 jonjon831983
jonjon831983's picture

Shutting down possible "Black Markets"?

 

Perhaps if they plan to loosen up the currency (ie gain acceptance as reserve status)), they would need to tighten the hold on Gold trading and consolidate to the official exchanges?

Tue, 12/27/2011 - 05:02 | 2012862 PsychicWebbah
PsychicWebbah's picture

So the moral of the MF Global story is to only take delivery of physical if your broker is JPM or GS. The government would never allow them to fail.

Tue, 12/27/2011 - 08:23 | 2013093 GetZeeGold
GetZeeGold's picture

 

The good news is that the government allowed Jon Corzine to fail....hell....it's a start.

 

The bad news is the CME......knows nothing.....sees nothing....and hears nothing.

 

.......so what else is new?

Tue, 12/27/2011 - 09:46 | 2013284 strannick
strannick's picture

and worse news is so does the CFTC

Tue, 12/27/2011 - 10:34 | 2013397 GetZeeGold
GetZeeGold's picture

 

 

I think everyone was already aware of that.

Tue, 12/27/2011 - 13:32 | 2013982 caconhma
caconhma's picture

May be Jon Corzine did not fail after all. He knows the "business" ins and outs. He is an ultimate insider. He is not stupid either. For him and his bogus company even $1.2B+ of fiat money means nothing.

But he and his bogus company has stolen tons of customers' physical gold and silver and transferred it "legally" into the FED associates storage facilities.

 

Tue, 12/27/2011 - 05:10 | 2012865 Platypi4Lyfe
Platypi4Lyfe's picture

If it falls to 1500 I'll buy more, other than that SSDD

Tue, 12/27/2011 - 12:38 | 2013795 Troll Magnet
Troll Magnet's picture

me, too.  1,500 and i'll be buying like there's no tomorrow.  for silver it's 24.  come on, fuckers!  gimme that discount!

Tue, 12/27/2011 - 05:11 | 2012866 Scirocco
Scirocco's picture

Funny little spike on gold and silver...

 

*MOODY'S: RISING JAPAN DEFICIT PLACES DOWNWARD CREDIT PRESSURES

 

oh ho :)

Tue, 12/27/2011 - 05:11 | 2012867 Uber Vandal
Tue, 12/27/2011 - 12:41 | 2013805 Troll Magnet
Troll Magnet's picture

and why not?  they love to regulate what we do to our bodies and what we do in our own private lives, too.  they know best since they're doing god's work and shit.  

Tue, 12/27/2011 - 05:22 | 2012869 Out9922
Out9922's picture

Silver Bells!!!

Tue, 12/27/2011 - 05:30 | 2012872 Ecoman11
Ecoman11's picture

That's because this started happening at some of the smaller exchanges. http://i40.tinypic.com/2q33us9.png

They issued a warning about a month ago and demanded all new private exchanges to apply for a license. Perhaps this is a warning for them to apply or get shut down.

Tue, 12/27/2011 - 05:40 | 2012877 Scirocco
Scirocco's picture

Jesse Livermore's Bucket Shops... Chinese edition... BITCHEZ

Tue, 12/27/2011 - 08:35 | 2013085 GetZeeGold
GetZeeGold's picture

 

On the advice of Jesse Livermore....I've had my hands sewn to my ass.

 

 

Tue, 12/27/2011 - 05:45 | 2012881 FranSix
FranSix's picture

The Vietnamese attempted to restrict trading in gold and banned it outright at one point, because it adversely affected the Dong.

The December, 2012 gold futures options chain has the largest open interest in the $2000/oz. strike price.  The contract trades for $13.-    In the same options chain, the highest bet is a strike price of $20,000/oz.

http://quotes.ino.com/options/?s=NYMEX_GC.M12.E

Tue, 12/27/2011 - 06:57 | 2012946 goldenbuddha454
goldenbuddha454's picture

After the market crash of 2012, to commence sometime after the new year, gold and silver will rally again IMO.

Tue, 12/27/2011 - 09:36 | 2013252 Smiddywesson
Smiddywesson's picture

If they want to save Obama, they have to seriously print.  If they want to print to that extent, they will devalue fiat.  If they wan't to devalue fiat, in addition to printing they will tie fiat to gold and ramp gold prices to the moon.  So yeah, after MF Global, and the Chinese/Japanese agreement, and everything else, I'd say the markets will continue to go down until TPTB set the plan into motion, and then stocks will ramp like they did in 1934.

Tue, 12/27/2011 - 11:05 | 2013462 FranSix
FranSix's picture

There's no open interest in the totally improbable strike price.

Tue, 12/27/2011 - 12:59 | 2013855 xela2200
xela2200's picture

17,887 open interest on Gold $2,000 calls. That just blew my mind. Who are these people and what do they know?

http://quotes.ino.com/options/?s=NYMEX_GC.M12.E

 

The $20,000 strike just looks odd. Like a bet on going to gold standard. Maybe, the congress people know something and need to make a quick buck. lol

http://www.cnbc.com/id/45795192

Tue, 12/27/2011 - 15:49 | 2014408 DosZap
DosZap's picture

xela2200

Who are these people and what do they know?

They are US,doesn't take a rocket scientist to know, there is no way to stop Gold from hitting 2k+, and well beyond within 12-36mos.

It will likely hit the pooper scooper when the mkt crashes(if allowed),and then the prices will drop back to 900-1k.

And I dare ya to try and find any physical at that price if it does.In'08,when it hit the skids, the PREMS were HIGHER , or at least as high as now.

This time,it will be far worse.

There is a major danger waiting on a FALL, and winding up empty handed w/a wad of fiat.(one needs to make a decision where to buy, and buy...........................then Livermore it.

Tue, 12/27/2011 - 05:43 | 2012882 Urban Redneck
Urban Redneck's picture

Kills two birds with one stone, short term, by reducing domestic "competition" for physical, and long term, by increasing State tracking, and if necessary, expropriation, without any ugly buzz words like "1099".  A happy New Year to all their Chinese bitchez, courtesy of the PBoC. 

Tue, 12/27/2011 - 05:57 | 2012888 changie
changie's picture

I currently own a precious metals brokerage firm in China, this rule is to close all ''illegal' gold/silver OTC trading. reason is these small companies are stealing clients money. Client makes money in these small firms and the owner of the firm shuts down and takes all the clients money and leave the country. So Chinese gov't is only allowing trading of gold and silver through 2 exchanges, one is shanghai gold exchange, the second is TianJing Precious Metals Exchange

Tue, 12/27/2011 - 06:45 | 2012933 Urban Redneck
Urban Redneck's picture

The Chinese government "looking out for the little guy"?  In atonement for the poisonous, air, water, toothpaste, pet food, sheet rock, et al?  Or the Chinese investment scams that will ensure Muddy Waters and company have a full time employment guarantee until the whole house of cards comes down? Just like the SEC, CFTC, and one James “Assclown” Giddeons are looking after the best interests of investment clients in the US- who unfortunately did business with that "illegal" MF Global operation that was stealing clients’ money and shutting down...

The PBoC is looking after the STATE's interests, not the best interests of clients of investment firms seeking to trade in the gold market. 

 
To the extent that "marketing" can spin it as the latter, they demonstrate an ability to learn quickly from the best, the marketing on this isn't just the usual cheap Chinese knockoff.  However, if they had really awoken Christmas morning gifted with a desire to make the investing world a better place, they would issue an arrest warrant for one John Corzine, and send one of their execution vans to extraordinarily rendite him for trial, after all its not like there weren't Chinese clients of MF Global, and they were well enough capitalized and connected to be investing outside of China. 

  

Tue, 12/27/2011 - 09:46 | 2013285 Smiddywesson
Smiddywesson's picture

I've been very critical of the Chinese government on this site, but in putting myself in their place, I think the move to close the illegal exchanges makes sense.  

The government knows what's coming, so unlike your government here in the West which is discouraging its citizens from buying gold, the Chinese are actually encouraging their citizens to protect themselves.  They are absolutely terrified about what can happen when the system collapses and 3 billion people speaking 290 different languages find themselves with no bride, no job, and no money.

The relative morality of the government there is another issue entirely, but in light of what is going on here, I'm not getting into that discussion.

Tue, 12/27/2011 - 06:59 | 2012942 TGR
TGR's picture

...and PAGE (the new exchange in Kunming) when it becomes operational next year. PAGE has had a notification up for a few months now that companies have been illegally setting up and trading gold under its name.

Either way this is only good for gold traders/those seeking delivery in China, to stop scams and provide more transparency/ guarantee. BTW, China Daily had a prominent article today stating via a senior central banker that China should BTFD:

"The Chinese government should not only be cautious of the imported risk caused by rising global inflation, but also further optimize its foreign-exchange portfolio and purchase gold assets when the gold price shows a favorable fluctuation," said Zhang Jianhua, director of the research bureau affiliated with the People's Bank of China (PBOC). http://www.chinadaily.com.cn/bizchina/2011-12/27/content_14332766.htm

Tue, 12/27/2011 - 08:58 | 2013162 Non Passaran
Non Passaran's picture

Cool, thanks, good info.
Like I said above, I expected no change in the official pro-gold policy.

Tue, 12/27/2011 - 11:34 | 2013542 Below Zero
Below Zero's picture

Those small gold/silver OTC trading companies sound like they are using the MF business plan.

Tue, 12/27/2011 - 11:46 | 2013595 constantine
constantine's picture

Change, do you know if this is changing their plans for opening the Pan Asian Gold Exchange. I noticed a posting on their website that seemed to suggest that some scams were posing as the PAGE, using fake websites and then stealing money. Thanks.

Tue, 12/27/2011 - 13:03 | 2013873 xela2200
xela2200's picture

Changie,

Do You know when the Pacific-Asian Gold Exchange is going to open?

Tue, 12/27/2011 - 05:57 | 2012889 DaBernank
DaBernank's picture

You can't eat Shanghai condos.

Tue, 12/27/2011 - 05:58 | 2012890 I am Jobe
I am Jobe's picture

How about NIKE shoes or FOXCONN stuff?

Tue, 12/27/2011 - 08:46 | 2013112 GetZeeGold
GetZeeGold's picture

 

...and you can't live in the ghost cities either.

 

Not if you're alive anyway....they made them for the ghosts

Oh sure.....you can get in.....but the paperwork is a bitch....you just have to prove you're dead.

http://www.dailymail.co.uk/news/article-1339536/Ghost-towns-China-Satellite-images-cities-lying-completely-deserted.html

 

 

Tue, 12/27/2011 - 06:47 | 2012935 nathan1234
nathan1234's picture

Things hotting up on the Turkey Syria border. It appears that the Saudis and the Qataris are ganging up on Assad.

A Sunni Shia war instigated by Israel.

http://www.debka.com/article/21602

Just a matter of time before war descends on all of us and PM's ascend to heaven

 

Tue, 12/27/2011 - 07:02 | 2012953 toadold
toadold's picture

i'm just buying miniscule amounts of gold for protection against hyperinflation. I really wish that I never have to use it to buy stuff in the future, but looking at all the sturm and drang in market and various government actions I'm growing less and less optomistic.  After next payday I'm going to start shopping for some jewelry grade gold chain.  Does anybody have a good source on that stuff?

Tue, 12/27/2011 - 07:10 | 2012962 Fred C Dobbs
Fred C Dobbs's picture

My local coin shop has lots of gold jewelry selling at close to spot.  Try one in your area.  

Tue, 12/27/2011 - 08:07 | 2013052 Sudden Debt
Sudden Debt's picture

I bought a gold wristband for the misses this newyear. 22k and the weight is more than the value i paid for it where it to be complete gold.
I cheched it out on google and a lot of gold jewls seem to be weighted up with other metals inside "for strenght".
It kind of shows that you never really know 100% of what you buy.

Tue, 12/27/2011 - 15:31 | 2014352 DosZap
DosZap's picture

Fred C Dobbs

Make sure it's at least 18k,preferably 22k.

Tue, 12/27/2011 - 09:48 | 2013294 MFL8240
MFL8240's picture

Family Dollar  Store!

Tue, 12/27/2011 - 07:16 | 2012969 vegas
vegas's picture

Good luck with that idea ChiComs.

 

http://vegasxau.blogspot.com

Tue, 12/27/2011 - 08:49 | 2013133 Ron Real
Ron Real's picture

Given that today Zhang Jianhua, director of the research bureau affiliated with the People's Bank of China spoke to the need for China to increase its gold reserves, I looked for the Bloomberg articles. A search on Bloomberg for "GoldChina" or for "Gold PBOC" returned none of the specified articles. That is consistent with my daily look at major Chinese press (in English).I'd like a link or two for reference, please.

Tue, 12/27/2011 - 09:25 | 2013215 MFL8240
MFL8240's picture

 

*CHINA TO INCREASE MANAGEMENT OF GOLD TRADING, PBOC SAYS

*CHINA GOLD TRADING RESTRICTED TO SHANGHAI EXCHANGES, PBOC SAYS

*CHINA ORDERS UNAUTHORIZED GOLD TRADING PLATFORMS TO STOP: PBOC

*PBOC ASKS SHANGHAI GOLD, FUTURES EXCHANGES TO BOOST MANAGEMENT

 

 

 

VERY SORRY BUT I MISSED SOMETHING.  HOW DOES THIS EFFECT THE PRICE OF GOLD SINCE UNAUTHORIZED AND UNREGISTERED SALES IN CHINA HAVE NOTHING TO DO WITH THE PAPER GOLD CHARADE IN CHICAGO?  SOMEONE FILL ME IN BECAUSE, I DO NOT QUITE UNDERSTAND THIS FUCKING GAME ANYMORE.

Tue, 12/27/2011 - 09:45 | 2013277 GetZeeGold
GetZeeGold's picture

I DO NOT QUITE UNDERSTAND THIS FUCKING GAME ANYMORE.

 

Congrats.....that is the phrase that pays....and for that we'll be sending you the home version of the Mind F_ch game.

Tue, 12/27/2011 - 09:47 | 2013288 MFL8240
MFL8240's picture

Read the article from Jim Willie that I posted below.  

Tue, 12/27/2011 - 09:44 | 2013279 MFL8240
MFL8240's picture

*CHINA GOLD TRADING RESTRICTED TO SHANGHAI EXCHANGES, PBOC SAYS

 

This is the best news possible for the American Gold holders.  The Chinese want their Gold out of the hands of the Chicago gang and will force trading of Gold in China where there is some level of integrity.  Thanks to the criminals like Dimon and Corizide for the heist of MF Global Silver which was the catalyst for this move.  The US Comex is a sewer and is trusted by no one.

http://www.gold-eagle.com/editorials_08/willie122111.html

Tue, 12/27/2011 - 10:41 | 2013411 Smiddywesson
Smiddywesson's picture

The Chinese need to stack a lot more gold, so they are the chief beneficiaries of gold supression and kicking the can.  They are not going to take down anything until they have enough gold in their central bank to do business.

Tue, 12/27/2011 - 09:56 | 2013317 peak experience
peak experience's picture

The Buddha says that if developed, the mind is supremely "pliable" and "workable." When the mind is defiled by the five hindrances, it is neither pliable, nor workable, nor luminous, nor perfectly concentrated for the destruction of the fetters and also compares the defilements of the mind to impurities in gold ore, implying that just as gold does not manifest its intrinsic radiance when it is in its raw state mixed with impurities, so is the intrinsic radiance of the mind not apparent when it is defiled by the hindrances. 

Tue, 12/27/2011 - 10:45 | 2013418 chinaboy
chinaboy's picture

For those of you who don't read Chinese, the key here is not China control gold trade. Physical buying is hot as ever (and gets hotter). The key here is to control bootleg exchanges rampant across the country. Correspondingly, Shanghai gold exchanges (the official exchange) tighten trader qualification requirements. In my opinion, not a bad thing. gold price drops for any reason. My personal blame is a broken COMEX. But hey, gold and silver can be among few investment vehicles left. So let them sell.

Tue, 12/27/2011 - 11:56 | 2013634 whaletail
whaletail's picture

Must suppress the price so the money printing can speed-up. 

Tue, 12/27/2011 - 14:37 | 2014166 ricocyb13
ricocyb13's picture

http://www.youtube.com/watch?v=5V3kpKzd-Yw

 

listen to Kyle Bass comment on gold in this video. Tune into the video at minute 41.

Kyle Bass bought USD 1 billion of PHYSICAL gold for University of Texas at which he is a director:

http://www.utimco.org/scripts/internet/board_members.asp

He is saying that the gold-market is not backed by physical gold (only about 4% is backed by physical gold), all other gold-trading is just paper-gold (worth nothing).

 

Tue, 12/27/2011 - 14:40 | 2014182 TheObsoleteMan
TheObsoleteMan's picture

In short order, tighter government controls will happen here. I can see this: All dealers {local coin shops & pawn shops too} will have to register with a new federal program. ALL SALES & PURCHASES REGARDLESS OF SIZE WILL BE REPORTED AND SALES TAXED AT, SAY, 20%. Records and receipts of all transactions will be sent to this new federal program. This will accomplish two things: 1. High transaction tax will discourage sales to the public, but not to the dealers. 2. The feds will now have a list of owners on record, so they will know where to go to seize it when the time comes. Bullion owners who bought their metals prior to the creation of this program are exempt from the tax of course, but are under the law, to register their holdings with the program. Any metal found in your possession without a program certificate will be considered contraband, and subject to confiscation and imprisonment.

Wed, 12/28/2011 - 14:57 | 2016837 LookingWithAmazement
LookingWithAmazement's picture

Dump your PMs - bubble is over.

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