• BullionStar
    05/30/2016 - 21:24
    The US Gold Market is best known as the home of gold futures trading on the COMEX in New York. The COMEX has a literal monopoly on gold futures trading volumes worldwide, but very little physical...

The Hoarding Continues: China Has Imported More Gold In Six Months Than Portugal's Entire Gold Reserve

Tyler Durden's picture




 

While the highly "sophisticated" traders that make up the gold market continue to buy or sell the precious metal based on whether the Fed will or will not do the NEW QE tomorrow (or just because, like Bruno Iskil, they have a massive balance sheet, and can create margin position out of thin air with impunity), China continues to do one thing. Buy. Because while earlier today we were wondering (rhetorically, of course) what China is doing with all that excess trade surplus if it is not recycling it back into Treasurys, now we once again find out that instead of purchasing US paper, Beijing continues to buy non-US gold, in the form of 68 tons in imports from Hong Kong in the month of June. The year to date total (6 months)? 383 tons. In other words, in half a year China, whose official total tally is still a massively underrepresented 1054 tons, has imported more gold than the official gold reserves of Portugal, Venezuela, Saudi Arabia, the UK, and so on, and whose YTD imports alone make it the 14th largest holder of gold in the world. Realistically, by now China, which hasn't provided an honest gold reserve holdings update to the IMF in years, most certainly has more gold than the IMF, and its 2814 tons, itself. Of course, the moment the PBOC does announce its official updated gold stash, a gold price in the mid-$1000 range will be a long gone memory.

Here is the latest breakdown of gold reserves by Top 20 countries via the WGC:

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Wed, 08/15/2012 - 15:21 | 2707780 Tsunami Wave
Tsunami Wave's picture

Gold, Bitchez!! Have a nice day.

Wed, 08/15/2012 - 15:24 | 2707802 vast-dom
vast-dom's picture

and gold still under $2k/oz? manipulation of PMs.

Wed, 08/15/2012 - 15:29 | 2707821 Pladizow
Pladizow's picture

Why China is buying gold: http://www.youtube.com/watch?v=YPXncTuwFIE

Wed, 08/15/2012 - 15:33 | 2707847 malikai
Wed, 08/15/2012 - 17:36 | 2708344 AldousHuxley
AldousHuxley's picture

this is like comparing an apple and an apple car.

 

portugal population 10M

China population 1,344M

 

China should be compare to entire EU. Just Beijing alone has twice more people than entire country of portugal.

 

 

 

 

Wed, 08/15/2012 - 18:06 | 2708452 gmrpeabody
gmrpeabody's picture

Does this mean ..., I'm not stupid for holding PMs...? No, wait... don't answer that.

Wed, 08/15/2012 - 18:39 | 2708531 Jay Gould Esq.
Jay Gould Esq.'s picture

The United States: "Officially" 8,133 tonnes...

When was the last time these "official" bullion holdings were audited, and the findings of said audit made a matter of public record ?

Wed, 08/15/2012 - 19:13 | 2708620 smlbizman
smlbizman's picture

i would question the u.s. and all others that the fed is holding for them....so probably the top 5 just have a reciept...and the fed is probably using the ...dont ask dont tell policy, when countries inquire about their gold..

Wed, 08/15/2012 - 20:32 | 2708813 fourchan
fourchan's picture

 

 

all those we buy gold places are holes in america gold runs out to the rest of the world through.

Thu, 08/16/2012 - 03:02 | 2709429 ammo42
ammo42's picture

The United States: "Officially" 8,133 tonnes...

It's not difficult to declare such large reserves if you count tungsten.

Wed, 08/15/2012 - 18:43 | 2708538 nmewn
nmewn's picture

What does population have to do with China printing and exchanging that for gold?

Wed, 08/15/2012 - 21:30 | 2708942 dexter bland
dexter bland's picture

"However, our information collection from various trade sources indicated that these Hong Kong export numbers have been highly inflated by growing round tripping between mainland China and Hong Kong whereby local companies used gold to engage in currency and interest rate arbitrage transactions."

 

http://share.thomsonreuters.com/assets/newsletters/GFMS/InsideGFMS-Issue...

 

Wed, 08/15/2012 - 17:49 | 2708388 boogerbently
boogerbently's picture

What is the (percieved) advantage of govt's manipulating gold down, OTHER than the obvious, they can buy more?

There must be some technical, currency, inflationary reason.

Wed, 08/15/2012 - 18:25 | 2708472 Dr Benway
Dr Benway's picture

The gold price exposes the money printing and gold presents an investment alternative to ponzi assets, so they want to prevent gold rising. On a grander level gold represents a threat to the very core of a financial system built on air.

This is the theory in any case, YMMV.

Wed, 08/15/2012 - 18:56 | 2708581 Manthong
Manthong's picture

Gold is one of the determinants for interest rates.. an escalating price of gold puts pressure on interest instruments to pay more to compete. Central banks have to and will continue to force the price of gold low in order to keep interest rates low and government debt manageable..

until something beyond their control perturbs the equilibrium and everything changes.

Wed, 08/15/2012 - 20:34 | 2708819 fourchan
fourchan's picture

gold, enemy of the out of control state.

Thu, 08/16/2012 - 01:57 | 2709390 GAAP is crap
GAAP is crap's picture

I believe the oligarchs ruled well with a gold standard also.  I think causing the great depression 1 and bringing 'states' into 2 'world' wars qualifies as out of control.  Fiat does put a new spin on it.  The key word is control.  Gold can suck if they manage to control it...which they seem to do a good job of

When it serves their purposes, they'll monetize gold, confiscate it from citizens, and throw it in the 'basket' they keep mentioning...for the good of us all, of course. 

 

beware the monetization of gold trap.  let them keep the fiat while we transact with real assets they won't admit is money...

 

Wed, 08/15/2012 - 15:34 | 2707863 economics9698
economics9698's picture

I always thought it insanely stupid to be a mercantilist in the days of the fiat currencies.  I guess someone gave China the memo.

Wed, 08/15/2012 - 15:54 | 2707971 Midas
Midas's picture

Bullish for Tungsten!

Wed, 08/15/2012 - 15:59 | 2707998 Michael
Michael's picture

This is bullish for lead;

Social Security Administration To Purchase 174 Thousand Rounds Of Hollow Point Bullets

First it was the Department of Homeland Security, then it was the National Oceanic and Atmospheric Administration, and now the Social Security Administration is set to purchase 174,000 rounds of hollow point bullets that will be delivered to 41 locations across the country.

A solicitation posted by the SSA on the FedBizOpps website asks for contractors to supply 174,000 rounds of “.357 Sig 125 grain bonded jacketed hollow point pistol ammunition.”

http://www.infowars.com/social-security-administration-to-purchase-174-thousand-rounds-of-hollow-point-bullets/

Wed, 08/15/2012 - 16:09 | 2708040 lemonobrien
lemonobrien's picture

well, when peoples don't get their social security checks, theys bounds to go to washington; find the social security offices, and pay them a visit. personally; and if they can't give the peoples their money, they mights have to give them some ammo instead.

Wed, 08/15/2012 - 16:31 | 2708108 Divine Wind
Divine Wind's picture

 

 

Lemonjello,

Now dat wuz well said. You talks good.

Might you be interested in the job of President?

Wed, 08/15/2012 - 16:47 | 2708183 Michael
Michael's picture


DHS Classifies New Ammo Purchases Following Controversy

The Department of Homeland Security has redacted information relating to the quantity of bullets it is buying following a controversy concerning the agency’s purchase of over a billion rounds of ammo, which many fear is a sign the federal government is preparing for civil unrest in the United States.

Despite the fact that documents are only supposed to be redacted if authorized by Congress or for national security reasons, a solicitation posted on the FedBizOpps website yesterday concerning ammunition purchases made by the DHS on behalf of Immigration & Customs Enforcement (ICE) contains numerous blacked out sections.

The classified portions of the document include references to the amount of 223 62 and 223 64 grain ammunition being purchased.

The solicitation explains how the contract put out by the DHS to purchase the ammunition was not subject to “full and open competition,” a process justified by what the DHS claims was an “unusual and compelling urgency” to acquire the bullets, noting that there is a shortage of bullets which is threatening a situation which could cause “substantial safety issues for the government” should law enforcement officials not be adequately armed.

The Department of Homeland Security’s decision to black out sections of the document, including the number of bullets being purchased, is likely to be related to a massive controversy which has snowballed over the last few weeks pertaining to concerns as to why the federal agency has purchased well over a billion rounds of bullets over the last 6 months alone.

The DHS’ decision back in March to purchase of 450 million rounds of .40-caliber hollow point bullets that are designed to expand upon entry and cause maximum organ damage prompted questions as to why the federal agency required such powerful bullets and in such large quantities merely for training purposes.

This was followed up by a more recent order for a further 750 million rounds of assorted ammunition, including bullets that can penetrate walls.

http://www.infowars.com/dhs-classifies-ammo-purchase-following-controversy/

Wed, 08/15/2012 - 17:04 | 2708239 Michael
Michael's picture

It'll be more likely those hollow point bullets will be used more on black people statistically speaking just as in New Orleans.

Having a black president next year will make it easier to use those bullets on blacks since no one will question Obama's use of those caps and their purchase by his administration.

I'm voting for Obama.

Wed, 08/15/2012 - 17:45 | 2708377 Paul Atreides
Paul Atreides's picture

Voting only gives the current system of electoral fraud and bankster puppet politicians your approval.

DON'T VOTE 2012!

Wed, 08/15/2012 - 17:51 | 2708393 boogerbently
boogerbently's picture

Write in Ron Paul, for prez (NOT because you love him, because you HATE the current 2 party scam).

Vote for the "party of your choice" non-incumbent.

Wed, 08/15/2012 - 20:42 | 2708835 CH1
CH1's picture

VOTING???  As in, for a politician?

How barbaric... how obsolete.... and what a massive waste of time.

Thu, 08/16/2012 - 11:19 | 2710621 Jack Napier
Jack Napier's picture

Ron Paul's entire family is in the masonic order even though he claims he himself is not, but the apple doesn't fall far from the tree. There are onliy 2 votes that matter, your wallet and your feet, but if you vote with your feet that's basically giving up. The only way to make a difference is to stack physical metal and to convince others to do the same.

Wed, 08/15/2012 - 17:52 | 2708396 Michael
Michael's picture

I voted yesterday in the Florida primary and helped defeat Paul Ryan's endorsement of Porter Goss by putting in Trey Radel instead.

Wed, 08/15/2012 - 19:18 | 2708640 divide_by_zero
divide_by_zero's picture

With all these amo purchase thru the executive branch I don't think your impeachment fallback plan will work with Obama. It's clear now he doesn't intend to leave office.

Wed, 08/15/2012 - 17:12 | 2708267 PiratePawpaw
PiratePawpaw's picture

Michael while this is indeed interesting, it is not suprising. This is why for over ten years my PM portfolio has included: Gold, Silver, Copper, Brass, and Lead. We need to be prepared for the same thing they are preparing for. Change. People resist it, and it will be unpleasant; but we will emerge from it much better off if we are prepared. Just holding the above-mentioned metals is not enough, we need to know how to and be prepared to use/exchange them all.

I dont depend on the govt for anything now. As the situation deteriorates, we can depend on them less. Be prepared to take care of yourself, for everything. If you cant personally provide it, learn to live without it.

Wed, 08/15/2012 - 17:02 | 2708240 Gavrikon
Gavrikon's picture

Mofosheeee

Wed, 08/15/2012 - 17:18 | 2708285 This just in
This just in's picture

Seriously.  We all sit around giggling, but why the hell ARE they buying all the ammo?  And HOLLOW POINT ROUNDS? 

Wed, 08/15/2012 - 18:24 | 2708495 DanDaley
DanDaley's picture

Because they want you DED...D-E-D, DED!

Wed, 08/15/2012 - 21:06 | 2708889 eaglefalcon
eaglefalcon's picture

Yup, that's what the executive branch of the government does the best: they execute

Thu, 08/16/2012 - 02:11 | 2709396 GAAP is crap
GAAP is crap's picture

Stalin lives?

Wed, 08/15/2012 - 15:32 | 2707842 DoChenRollingBearing
DoChenRollingBearing's picture

@ vast-dom

Yep.  Everyone should do what China is doing re gold.  BUY.

Article on the "rest of the metals" (iron, copper, titanium, aluminum, etc.) by Mickey Fulp, "The Mercenary Geologist":

http://tinyurl.com/8o35gd4

Wed, 08/15/2012 - 15:46 | 2707932 SeverinSlade
SeverinSlade's picture

Let's see.  Equities have rallied a ton since the June lows and gold and silver have done...what?  Trade sideways?  The euro continues to implode, war is imminent with Iran/Syria, food inflation is rampant...and still, gold and silver do NOTHING?

Manipulation for 500 Bob!

Wed, 08/15/2012 - 16:09 | 2708039 Cognitive Dissonance
Cognitive Dissonance's picture

And the answer is.........Keep buying the freaking dip.

Wed, 08/15/2012 - 17:29 | 2708327 kill switch
kill switch's picture

 

Why are so many sovereigns hoarding this barbaric commodity, BEN?

Wed, 08/15/2012 - 19:25 | 2708656 Indrid Cold
Wed, 08/15/2012 - 16:13 | 2708052 El Oregonian
El Oregonian's picture

Hey! I'm not done stacking!!! It is way better for us in the long haul.

Keep your chin up Soldier!

Wed, 08/15/2012 - 16:56 | 2708213 NooooB
NooooB's picture

Are they buying it or digging it up in Africa? That would be an important distinction with relation to the effect on gold prices.

http://www.aljazeera.com/programmes/africainvestigates/2011/11/201111307...

@ 15:40 it gets interesting...

Wed, 08/15/2012 - 19:02 | 2708596 Solon the Destroyer
Solon the Destroyer's picture

China is the largest gold miner nation in the world at about 30% more than the second place nation, South Africa.

The amount of their purchase so far this year equates to a little more than their entire annual production for the last year that I have accurate figures (2006).

Now they could certainly have ramped production in the intervening 6 years, but it is doubtful their production would have doubled.  So some of this gold had to have come from the "market".  That market could be direct-from-a-miner, yet it should still have rocked supply of physical to the general market, on the margin.  Have there been episodes of temporary backwardation this year?  I don't recall any.

Is it possible this delivery is the resolution of old mining book hedges in the futures market and that the buying came over a long period of time in the past?

Wed, 08/15/2012 - 16:56 | 2708214 NooooB
NooooB's picture

Are they buying it or digging it up in Africa? That would be an important distinction with relation to the effect on gold prices.

http://www.aljazeera.com/programmes/africainvestigates/2011/11/201111307...

@ 15:40 it gets interesting...

Wed, 08/15/2012 - 19:05 | 2708605 donsluck
donsluck's picture

Actually, this news may be gold bearish, since if China slows their purchases, demand will drop.

Wed, 08/15/2012 - 20:32 | 2708811 long-shorty
long-shorty's picture

if China is buying all that gold and Paulsen owns 5% of the GLD, and the price is just sitting here, what would happen were they to stop buying?

this makes me a bit nervous about the price of gold in the short run.

Wed, 08/15/2012 - 15:32 | 2707841 SheepleLOVEched...
SheepleLOVEcheddarbaybiscuits's picture

sorry off topic Id thought I should throw this out there

"SS Admin getting quotes for large quantities of hollow-point rounds"

 

http://rt.com/usa/news/administration-rounds-hollow-point-768/

Wed, 08/15/2012 - 15:33 | 2707851 DoChenRollingBearing
DoChenRollingBearing's picture

YES, WHY is the Social Security Administration buying so much ammo?

Wed, 08/15/2012 - 15:35 | 2707866 knukles
knukles's picture

The death panels that the administration said did not exist.

(no sarc intended)
Booyah

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