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Japan Gold Buying On TOCOM Again Supports

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From Gold Core

Japan Gold Buying On TOCOM Again Supports

Gold’s London AM fix this morning was USD 1,669.00, GBP 1,072.69, and EUR 1,282.17 per ounce.

Yesterday's AM fix was USD 1,675.00, GBP 1,076.55, and EUR 1,294.94 per ounce.


Cross Currency Table - Bloomberg

Gold started out lower in Asia this morning as the euro faltered on news that European finance ministers rejected an offer by Greece's private creditors to help restructure its debts, but gains on Tokyo futures exchanges and an increase of demand in India cushioned the fall.

Investors are waiting on the outcome of a 2 day Federal Reserve meeting which ends on Wednesday.  Here they are following any signs that interest rates will remain low, as that could put pressure on the U.S. dollar.

The Tokyo Commodity Exchange, December, gold contracts climbed as high as 4,167 yen/gram, its biggest gain since mid-December. The gains initially propelled cash gold even though trading was slow during the Lunar New Year break.

Japan has been notably absent in the gold market in recent years. This may be changing as concerns about the Japanese economy and continuing debasement of the yen may be leading to Japanese diversification into gold. 

The scale of domestic savings in Japan remains enormous.

This would be a new and potentially extremely important source of demand in the gold market which could help contribute to much higher gold prices. 

The EU will freeze assets in Europe of the Iranian Central Bank as well as of 8 other entities and ban trade in gold, precious metals, diamonds and petrochemical products from Iran. The Iranian Foreign Ministry in a statement called the decision “aggressive” and said it will have “negative consequences” in Europe, including higher oil prices. The elevation of tension with Iran will continue to give gold a safe haven status for investors.

The World Gold Council published its yearly report on gold’s performance for 2011.  

They report, “During 2011, the US dollar price of gold rose by 9% ending the year at US$1,531/oz based on the London PM fix, marking the 11th consecutive year of price increases.1 During the first part of January 2012, the price of gold continued its upward trend above the US$1,600/oz level.”

Central bank gold purchases are expected to have hit another record in 2011, while demand for gold-backed exchange-traded products fell to less than half of that seen in 2010 last year, according to a report from the World Gold Council on Monday. 

The WGC, an industry-backed group, said in November it expected central banks to add some 450 tonnes of gold to their existing reserves in 2011, driven mainly by purchases from emerging economies that are seeking alternative investments to the U.S. dollar. 


Source: World Gold Council - Reuters graphic

"Central bank net-buying is poised to have a record year, and many of these purchases happened during Q3 and Q4. Additionally, investment activity remained healthy as market participants continued to access the market whether through bars and coins or other vehicles," the council said in a report. 

"In fact, gold-backed ETFs, collectively, added 75 tonnes of gold between September and December alone (out of 153 tonnes during the full year)," it said. 

Demand for gold-backed ETFs in 2010, when the reach of the euro zone debt crisis first became apparent with the bailouts of Greece and Ireland, reached 367.7 tonnes, according to WGC data. 

Rising equity market volatility and a desire among safety-conscious investors for cash in the run-up to the end of the year knocked the gold price back from September's record highs to December's closing levels around $1,564.00. Since then, gold has risen by nearly 8 percent to trade around $1,670 an ounce in London at 1455 GMT. 

"Our analysis shows that there have only been six previous instances in which the price of gold has fallen by more than 10 percent over the past decade and once the price has stabilised to a certain (typically new) level, it resumed its upward trajectory," the World Gold Council said, but did not include any price forecasts for 2012.

"Moreover, the price pullback experienced this last September was less pronounced than the pullback gold experienced during 2008. Even then, gold rose to finish the year with positive returns. Beyond the day-today market movements, the underlying gold price trajectory is based on its long-term supply and demand dynamics which remain robust," the council said.

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

NEWS
(Reuters)
Gold slips below 6-week high, focus on Fed meeting

(Reuters)
Gold inches up despite euro, eyes on Greece

(Bloomberg)
EU Hits Iran With Oil Ban, Asset Freeze

COMMENTARY
(Global Macro Monitory)
Is Gold About to Get a Monetary Blast (Off)?

(MoneyWeek)
Look what's happening to silver

 

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Tue, 01/24/2012 - 09:06 | 2091868 diogeneslaertius
diogeneslaertius's picture

the long-term value of gold is a Conspiracy Theory, just ask Benjamin Fulford

Tue, 01/24/2012 - 09:09 | 2091874 diogeneslaertius
diogeneslaertius's picture

in all seriousness, we may have hit a high water mark culture-wise

Tue, 01/24/2012 - 09:19 | 2091902 LawsofPhysics
LawsofPhysics's picture

LOL!  Right, because "banning" people and entire countries to trade in anything has always worked out so well in the past.  Good luck with that logic.

Tue, 01/24/2012 - 09:38 | 2091956 trav7777
trav7777's picture

yeah, trade embargoes are not acts of war, eh?

Tue, 01/24/2012 - 09:07 | 2091869 Sandmann
Sandmann's picture

Is it true that China and India are paying for Iranian oil and gas in gold ?

Tue, 01/24/2012 - 09:10 | 2091877 achmachat
achmachat's picture

it's the only choice they have left.

Tue, 01/24/2012 - 09:14 | 2091891 GeneMarchbanks
GeneMarchbanks's picture

At this point you can classify it under unconfirmed rumor. China is super shady when it comes to anything gold or reporting.

Tue, 01/24/2012 - 09:22 | 2091909 LawsofPhysics
LawsofPhysics's picture

China is a SOCIALIST state, period.  They are shady when it comes to reporting anything, especially if it is not in line with the "shiny happy" montra the state wants everyone to see.

Tue, 01/24/2012 - 09:35 | 2091945 Snidley Whipsnae
Snidley Whipsnae's picture

You mean to say... China hates us because of our freedoms? lol

Try a re read of the Unpatriot Act and the more recent NDAA... You can get in your reading while the goons are feeling you up before you board your flight.

Tue, 01/24/2012 - 09:48 | 2091986 LawsofPhysics
LawsofPhysics's picture

Not what I said at all, but if that is what YOU believe then good luck with that.  China has one of the most vibrant underground economies in the world.  I was talking about what the STATE is saying in China.  Big fucking difference dickweed.

Tue, 01/24/2012 - 09:56 | 2092024 Snidley Whipsnae
Snidley Whipsnae's picture

So, let me see if I understand what you said...

China has shady reporting but the US main stream media and US Gov agencies are reporting only the facts and are not fudging on the various stats that they publish?

Is that essentially correct... ass hole?

BTW, the US underground economy is also growing by leaps and bounds... which is what happens when governments make doing legit business a losing proposition.

Tue, 01/24/2012 - 10:03 | 2092049 LawsofPhysics
LawsofPhysics's picture

Did I say anything about the "Mark to Fantasy" accounting rules at U.S. banks or government agencies?  NO.  Try to stay focused Snidley and no shit.  Thanks helping to state the obvious fucknut.

Tue, 01/24/2012 - 10:13 | 2092109 Snidley Whipsnae
Snidley Whipsnae's picture

Here is your original post...

"China is a SOCIALIST state, period. They are shady when it comes to reporting anything, especially if it is not in line with the "shiny happy" montra the state wants everyone to see."

So, to me that means that you are unaware or refuse to admit that the US is also a socialist state... and has been since FDR's presidency.

"They are [China] shady when reporting anything"

So is the US. No one, at the Fed or in government (excepting Ron P) wants the US gold to be audited. The US continually changes the way the CPI is compiled, the birth/death model for employment is a total joke, and at least one third of US GDP is total fantasy... I could continue...

"Shiny Happy Mantra"... No more so than here in the US, otherwise we would have real economic news on at least ONE main stream media outlet. Instead, we are both here on ZH, attempting to figure out what our glorious leaders will subject us to next.

Get a clue. Nationalism is not going to solve this problem... no matter how much you troll.

Tue, 01/24/2012 - 11:18 | 2092384 Bay of Pigs
Bay of Pigs's picture

Speraking of propaganda,

"In fact, gold-backed ETFs, collectively, added 75 tonnes of gold between September and December alone (out of 153 tonnes during the full year),".

WGC? Please...

Tue, 01/24/2012 - 12:03 | 2092571 Snidley Whipsnae
Snidley Whipsnae's picture

Bay of Pigs...

I don't understand how anyone can take the World Gold Council figures seriously. Most central banks gold holdings, leasing and swaps are about as closely guarded as nuke secrets. I think so little of WGC numbers that I have never bothered to look into their methodology.

But, the same is true of most organizations that issue stats. It's certainly true in oil production numbers and OPEC stated reserves. Saudia Arabia and all OPEC members are on the quota system and that is based on stated reserves. So, every year no matter how much oil is shipped from an OPEC member country the new stated reserve is the same as the last year, and the year before that, and the year before that, etc... If SA had a lower stated reserve their quota would be cut. It's all number games and will continue until it doesn't.

The only value that anything has is equal to the amount of effort a person or people will put forth to get their hands on it. If one is dying of thirst no amount of commodities or fiat would be too much to pay for a few glasses of water.

 

Tue, 01/24/2012 - 12:10 | 2092607 Bay of Pigs
Bay of Pigs's picture

Agreed. Why they use the WGC as a source is almost incomprehensible.

 

Tue, 01/24/2012 - 13:27 | 2093016 LawsofPhysics
LawsofPhysics's picture

Right, no mention of anything related to the U.S. in my orignal post.  Thanks for pointing that out, who fell for the trolling again? 

Tue, 01/24/2012 - 09:50 | 2092007 Snidley Whipsnae
Snidley Whipsnae's picture

Gene... You are too smart to fall for this embargo against Iranian oil, imo.

On any given day there are hundreds of oil tankers, with registries from countries around the globe, loading oil at Persian Gulf terminals.

Once those tankers go to sea their destination can be anywhere. If they want to be deceptive the tankers can go to a port, off load into onshore storage tanks, and then the oil can be loaded into another tanker bound for another port...risne, repeat. 

Tracking millions of bbls of oil from origination to final destination is not possible when buyers/sellers want to be deceptive.

...and, if the transactions are done in PMs it's totally impossible to say who is paying how much for oil and where that oil originated.

Tue, 01/24/2012 - 09:59 | 2092032 GeneMarchbanks
GeneMarchbanks's picture

I took no position S-dub. My standpoint is armed neutrality. I'm making a distinction between rhetoric and actual events as they are often incompatible.

Tue, 01/24/2012 - 10:03 | 2092052 Snidley Whipsnae
Snidley Whipsnae's picture

Armed neutrality... ahhh... If only the US would adopt your stance.

Tue, 01/24/2012 - 09:16 | 2091894 Janice
Janice's picture

Which makes Iran public bank enemy number 1.....unleash the dogs of war.

Tue, 01/24/2012 - 09:37 | 2091952 Snidley Whipsnae
Snidley Whipsnae's picture

Ever visit a war zone Janice? Well... the way things are going a war zone might visit your neighborhood soon. That will save you the trip, eh?

Tue, 01/24/2012 - 09:32 | 2091936 Snidley Whipsnae
Snidley Whipsnae's picture

"Is it true that China and India are paying for Iranian oil and gas in gold ?"

................................................

India is reportedly offered to trade gold for oil with Iran as well... This entire trade embargo against Iranian oil is turning into a debacle... for more reasons than most realize.

"Gold emerging as world reserve currency, whether West likes it or not…"

http://maxkeiser.com/2012/01/24/gold-emerging-as-world-reserve-currency-whether-west-likes-it-or-not/

Tue, 01/24/2012 - 09:51 | 2092010 francis_sawyer
francis_sawyer's picture

Might as well start adding Greece, Portugal, or whoever else needs oil to that list if/as nobody buys their bonds anymore...

Tue, 01/24/2012 - 09:19 | 2091905 youngman
youngman's picture

Japan might be reporting their first trade deficit in years.....with their strong Yen....gold is cheap..and safer than the Yen with their huge deficits...but they think as one...if the Emperor says buy gold...they all will....

Tue, 01/24/2012 - 11:15 | 2092377 RiverRoad
RiverRoad's picture

Who needs the Emperor; they were buying it like crazy at Tiffany's when they were riding high.

Tue, 01/24/2012 - 09:26 | 2091923 TheSilverJournal
TheSilverJournal's picture

Gold is set to a min. of $10K / oz. Some think raising rates will cause the price of gold to go lower..it will not. When the rates are raised is when all of the malinvestments are exposed and that is precisely when gold will shoot the hardest. It's not until rates get ahead of inflation and all of the inflation is soaked up that gold willl stop raising and inflation will cease to persist.

TheSilverJournal.com

Tue, 01/24/2012 - 09:30 | 2091934 Madcow
Madcow's picture

the back door plan - 

- convince the public that gold is not money

- before the markets catch on to what is happening, let gold quickly rise to 10k

- use coercive force to clear the financial system of bad debts w/ gold settlement

- go back to business as usuall - only with much higher prices of raw materials

Tue, 01/24/2012 - 09:46 | 2091989 Zgangsta
Zgangsta's picture

It's a sad commentary on the world that we can get over 15 comments into a gold post without a single "gold bitchez" comment being made.

Tue, 01/24/2012 - 09:51 | 2092008 bernorange
Tue, 01/24/2012 - 09:51 | 2092014 Snidley Whipsnae
Snidley Whipsnae's picture

Hey Zgang... I just gave you a +1 for reminding us.

Tue, 01/24/2012 - 09:52 | 2092017 _underscore
_underscore's picture

Witty!

Tue, 01/24/2012 - 10:08 | 2092072 onebir
onebir's picture

And when Tyler fails to prefix the GoldCore posts "Guest Post:"...

Tue, 01/24/2012 - 10:04 | 2092057 BigInJapan
BigInJapan's picture

Japan being the only Asian exporter of gold, and all of that scrap gold (over 100 tons in 22011), I don't see Japanese savings being converted to gold anytime soon.

They're still lining up to sell at 20% under spot. Best game in town!!!

Tue, 01/24/2012 - 10:19 | 2092136 Snidley Whipsnae
Snidley Whipsnae's picture

Big in Japan... When you post that Japan is selling scrap gold for 20% under spot you need a link to back up your contention... otherwise, we will think you are just another troll making up stuff.

Tue, 01/24/2012 - 10:19 | 2092144 Zgangsta
Tue, 01/24/2012 - 10:28 | 2092187 Snidley Whipsnae
Snidley Whipsnae's picture

LOL... It might help if I could read Japanese. Good one Zgang.

Tue, 01/24/2012 - 11:41 | 2092492 GuyJeans
GuyJeans's picture

http://www.mmc.co.jp/gold/market/price/daily_price.html

 

It does "feel" like a 20% discount with the yen being 78 or so.  Price per gram in Yen from what I can tell is [($Goldprice*USDJPY)/31.1]*1.05    5% is tax.

Tue, 01/24/2012 - 16:17 | 2093761 BigInJapan
BigInJapan's picture

Snidely, I never took you for the lazy type. Troll this:

GOOGLE it! "Japan 100 tons gold"

FFS can't anybody do anything for themselves anymore ???

 

Tue, 01/24/2012 - 10:36 | 2092227 one man wolf pack
one man wolf pack's picture

Maybe Japan is selling that gold at a discount because it is contaminated with radiation.  Money that really will burn a hole in your pocket.

I think gold is definitely going higher.  What price ? who can say.  What will be the ultimate trigger ? again who can say.  I do know that with time we will all find out.  I think evryone should own some  physical. 

 I feel such joy when I look at my coins.

GOLD BITCHEZ

Tue, 01/24/2012 - 10:28 | 2092186 new game
new game's picture

real simple-the world starting to price the stuff we need in terms of gold.  or shall i state the obvious-debasement = higher nominal price.

your choice, hold green rags or gold, and/or silver and/or lead...

the gold standard has NEVER changed.

Tue, 01/24/2012 - 10:36 | 2092233 new game
new game's picture

new definition of poverty:not owning any PM. or a gun and lead.

Tue, 01/24/2012 - 10:40 | 2092243 Jimmy Carter wa...
Jimmy Carter was right's picture

Back on topic.  Internet auction gold and silver went from basically zero sellers a year ago, to dozens of sellers.  And waay over spot . More and more newspaper ads for bullion too. 

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