Chinese Physical Gold Investment Demand Surges While Americans Pile Into Stock & Crypto Bubbles

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By the SRSrocco Report,

Chinese demand for physical gold investment surged in the first three-quarters of 2017 while Americans ditched the shiny yellow metal for increased bets in the crypto mania and stock market bubble market.  Even though China's Hang Seng Stock Market outperformed the Dow Jones Index last year, Chinese citizens purchased the most gold bar and coin products Q1-Q3 2017 since the same period in 2013, when they took advantage of huge gold market price selloff.

According to the World Gold Council, Chinese gold bar and coin demand increased to 233 metric tons (mt) in the first three-quarters of 2017 compared to 162 mt in the same period last year.  Furthermore, if we include Indian gold bar and coin demand, China and India consumed nearly half of the world's total:

 

 

As we can see, China and India consumed 338 mt of gold bar and coin products which accounted for 47% of the total 715 mt Q1-Q3 2017.  German gold bar and coin demand of 81 mt took the third highest spot followed by Thailand (49 mt), Turkey (47 mt), Switzerland (31 mt) and the United States (30 mt).  Chinese gold bar and coin demand of 233 mt nearly equaled the total demand by German, Thailand, Turkey, Switzerland and the United States of 238 mt.

If we compare gold bar and coin demand by these countries in the same period last year, we can see some interesting changes:

While the increase in Chinese gold bar and coin demand was the big winner (162 mt to 233 mt), Turkish demand nearly doubled from 24 mt in 2016 to 47 mt this year.  However, the biggest loser in the group was in the United States.  U.S. Gold bar and coin demand fell substantially to 30 mt Q1-Q3 2017 from 66 mt during the same period last year.

As I mentioned at the beginning of the article, Americans shunned gold to make it RICH in the rapidly rising Stock and Crypto Markets.  We can see this quite clearly as investors choose to bet on the Dow Jones Index as it surged by 30% last year versus a mere 13.5% for gold:

So, as the Dow Jones Index increased nearly 6,000 points, or 30% since the beginning of 2017, U.S. demand for gold bar and coins fell 55% (Q1-Q3 2017).  Also, it makes perfect sense that American investors ditched gold for much larger 1,000+% gains in cryptocurrencies.

The stunning performance in the stock and crypto markets has frustrated precious metals investors to no end.  Not only do I see this all over the internet, but I also receive a lot of emails and comments on my blog.  And, it doesn't help that some precious metals investors, now turned crypto specialists and aficionados, are only happy discussing assets that make 10-20 baggers.  Forget about old fashion work and taking the time and money to build something real, we have now moved into a new investment strategy that to be successful, one must make 6-7 figure returns by clicking on a mouse.

All I can say is this... enjoy the Crypto fun while it lasts, because the forces of Gravity will once again bring us back down to earth where making a real living takes a lot of sweat and labor.  While some followers sense that I am negative about the cryptocurrencies, I am.  However, it is for a good reason.  Even though the Blockchain technology offers interesting solutions, the speculative mania is a different story entirely.  And, yes.. let's not forget the tremendous amount of fraud and corruption in the crypto markets.  If you don't believe me, just wait around a while... LOL.

Regardless, while the Dow Jones Index jumped by 30% last year, the Chinese Hang Seng market did one better by surging 43%:

X

Even with their Hang Seng Index up higher than the Dow Jones, Chinese gold bar and coin demand increased by 44% while U.S. physical gold investment demand fell by 55%.  Now, some may believe that the increase in Chinese gold and bar and coin purchases were partly due to the Chinese government banning the trading on cryptocurrency exchanges in the country.  However, the crypto exchange ban did not take place until the last quarter of 2017.  So, the 44% increase in Chinese gold bar and coin demand occurred before the banning of their cryptocurrency exchanges.   Because of the crypto exchange ban, we may see a spike in Chinese gold bar and coin demand during Q4 2017 when the statistics are released.

For whatever reason, Chinese physical gold investment demand increased significantly Q1-Q3 2017 while U.S. demand dropped like a rock.  It will be interesting to see how 2018 unfolds and if the extreme leverage in the stock and crypto markets finally unravels.  You see, it's not a matter of if, it's only a matter of time.  And, while many believe the Dow Jones will continue higher forever, all markets have to correct.  However, the next correction may turn out to be one heck of a crash.

Lastly, if you haven't checked out our new PRECIOUS METALS INVESTING section or our new LOWEST COST PRECIOUS METALS STORAGE page, I highly recommend you do.

Check back for new articles and updates at the SRSrocco Report

Comments

eclectic syncretist Sun, 01/21/2018 - 13:31 Permalink

As the sun sets on the American Empire, her politicians are constantly engaged in squabbles over their own petty and rampant corruption, and no one anywhere seems to be aware of the truth that it is the banks and their fiat skimming schemes that have brought about the rapid downfall of the country.

Hkan Sun, 01/21/2018 - 13:42 Permalink

Gold will make its way back as Gold backed currencies. 

Russia China Iran planning and maybe BRICS who are talking of a common gold market.

I see Gold as back to the future.

JibjeResearch Sun, 01/21/2018 - 14:11 Permalink

China owns $1 trillion bond.

Let's give them all the Gold at about $1500.  They can have the bond and the gold.

 

Man, it would be a dream come true for all cryptosians in the West as we abandon fiats and metals.

 

 

Argenta Sun, 01/21/2018 - 14:54 Permalink

Fair enough, but if you look at it on a per capita basis, the US was very nearly still ahead.  This article is a little misleading in that respect.

-Argenta

Slomotrainwreck Argenta Mon, 01/22/2018 - 08:52 Permalink

if you look at it on a per capita basis ...

Population difference 10:1 approximately.

"New estimates from the U.S. Census Bureau put China in the lead with 1.34 billion residents, followed by India with 1.19 billion. The United States is a distant third with 311.1 million people. "

That means, per capita, US has more of a PM glut than China; Therefore, less value. (if one considers supply/demand) No wonder we are jumping on cryptos; we are more saturated in PM's than China.

The proof is in the pudding when the USD disappears.

In reply to by Argenta

Yellow_Snow Sun, 01/21/2018 - 15:49 Permalink

That's funny... last I heard Japanese and Korean wanabe's were piling into cryptocurrencies...  and not Americans.

The story always changes to fit the narrative...  Right ???

everything1 Sun, 01/21/2018 - 16:05 Permalink

Gold is cultural in India, China seems to know .. he who owns the gold..  It may pay off for them long term, they do have more inflation and growth, and China didn't allow citizens to buy coin and bar gold, recently opening up that door, it's become quite popular since.  They don't just buy gold, they like hard assets and diversification, they have billions of people, the government is power mongering, what do you expect them to do, sit around on piles of money.  They are also going towards consumer driven economy so they can become less dependent on export driven economy, gold is all part of this plan to develop more home based wealth.

SixIsNinE afronaut Sun, 01/21/2018 - 23:35 Permalink

max igan continues to emphasize this Afronaut :

https://youtu.be/oLR3bEb6C70

if we get seduced like Smeagal "precious" - the electronic "smart grid" is an electronic prison where the small minority can turn off and on anyone's ability to do anything.  You WILL not even THINK unplus good thoughts or your privileges will be cut off. 

That's what all the 5G microwave towers that have been erected all over USA & Europe do.  They have much more capabilities than mere 4g smartphone communications. 

better wise up and get on youtube for these channels

stopthecrime.net    aplanetruth   deborah tavares

under NASA war plan documentation, they already have plans to go to next level - BEYOND human. 

they have to make the crypto so sexy and alluring that we fall for the trap - rather than draw a line in the sand and NOT accept digital money. 

Digital money is that dumb monkey trap - we DON'T have to take the next step. 

but will we? 

I caught a mouse in the basement the other day... had left out some traps and it had successfully ate the bait off ... i adjusted bait tactics...mouse got cocky ... came down next morning to find a mouse very dead with a very broken neck in the trap.

It's been what, 3 years since Davos announced they have brain readers to know what you think and the timeline is to have it in general adoption by 2024-5

the list of toxic shit in the chemtrails is long.  nanotech is way developed.  You have already breathed it in.

 

 

In reply to by afronaut

silvermail JibjeResearch Mon, 01/22/2018 - 09:49 Permalink

The financial nature of gold is that gold itself is a value, - as a material for making jewelry.

Bitcoin and all the other so-called crypto-currencies have two components - technological and financial.

- The technological part nature of bitcoin - it is a technological shell. That is, it is a wrapper (mask) in the form of blockchain and crypto technology, in which the financial nature Bitcoin is packed (hidden).
- Financial nature bitcoin - it is a pyramid, - the Ponzi scheme.

Because the growth of the imaginary value of bitcoin, is due solely to the influx of new idiots into this financial pyramid.
The growth of the imaginary value of Bitcoin is not due to anything else.
The growth of the value of the asset solely due to the influx of new idiots into the Ponzi scheme is the main sign of all financial pyramids.

But as soon as you try to explain this to any member of the bitcoin witness sect, they will immediately start dragging the conversation into the plane of bitcoin technology.

They, like any sectarians blindly believe and therefore do not want to talk about the most important thing - about the financial nature of bitcoin.
They are ready to talk for hours about bitcoin technologies only - about blockchain and crypto technology only.
That is, they are ready to talk only about that high-tech wrapper, which wraps (hidden) the usual nature financial pyramid Bitcoin and all others usual financial pyramid, in the shape of all the others so-called crypto-currencies.

(Pseudo crypto + pseudo currency) =  (usual financial pyramid), which is just hidden in the an unusual high tech mask packed.

Nevertheless, the very idea of ​​obtaining wealth without difficulty, at all times successfully enslave the consciousness of the mass of fools. And various ingenious swindlers, at all times, have successfully used this feature of the stupid masses of the people.

In reply to by JibjeResearch

roddy6667 everything1 Sun, 01/21/2018 - 21:05 Permalink

The Chinese like real estate. The home ownership rate is about 130%, because so many people own more than one home. in some cities the rate is 200%. It is not idle speculation. When a son is about 30 years old he gets married and the family buys him a home. Also, as the population grows in the cities from the Chinese program of moving 300 million rural people out of the country, that empty home will have a buyer. Homes are made of steel reinforced concrete and are sold as a concrete shell. The buyer spends another 20% to finish it to his taste. That's just how they like to do it here. I bought and finished and furnished one over 7 years ago. An empty, unfinished unit can be kept for decades without degrading. There is no property tax, so carrying expenses are nil. 

In reply to by everything1

Maestro Maestro Sun, 01/21/2018 - 16:35 Permalink

China, like Russia, is not pro gold in reality and acts in collusion with the BIS, IMF, COMEX, and LBMA to suppress the price of gold.  When gold goes up in price, it will be against the will of the Chinese, the Russians and the Indians.

 

The BRICs are all IMF member countries and are thus forbidden to monetize gold, or link their currencies to gold, or use gold as a trading or exchange mechanism:

 

http://m.beforeitsnews.com/silver/2016/04/how-the-imf-forbids-the-use-o…

 

http://www.24hgold.com/english/news-gold-silver-why-does-the-imf-prohib…

 

India recently collaborated with Western bankers and following the West's instructions, temporarily destroyed the purchasing power of its own Indian population by demonetizing physical cash, under the guise of eliminating tax evasion and cash-only criminal activity.  This has had the effect of crashing the gold price by temporarily removing the Indians from the gold market, exactly when the Trump inauguration lit a fire under the gold price.  

 

The Russians never abstained from using dollars even at the time of the communist USSR!  If they did not demand gold for their oil during the Cold War, why would the Russians do it now when the Russian central bank is owned and controlled by the City of London banking establishment since the creation of the new Russian Constitution under Yeltsin?  The Russians are forbidden to issue their own currency the Ruble without permission from Western bankers and the Russians can only buy US Treasuries with the dollars they get for their oil, not gold.  There are more dollar assets than Rubles in Russia:  

 

http://anonhq.com/checkmate-central-bank-russia/

 

http://www.pravdareport.com/russia/economics/30-12-2014/129431-usa_russ…

 

The gold price would have skyrocketed if the Russians and the Chinese were buying gold hand over fist as alleged.  Why do you think that Western bankers would give gold away at or below cost to their purported enemies?

 

Unless they were not enemies in reality, and just partners playing good cop, bad cop for the purposes of fooling and manipulating their unsuspecting respective populations?

 

http://www.mygen.com/users/ufo/Mao_was_a_Yale_Man_2.html

 

Why do the Russians never ask the Americans to leave Syria where the Americans are illegal invaders under international law?  Why did the Russians never prevent the Israelis from attacking their allies the Syrians?

 

The Shanghai Gold Exchange is a fraud designed to backstop and bestow legitimacy to the fraudulent COMEX "discovered" gold price.  Goldman Sachs and JPM never could have manipulated the gold and silver prices lower without active Chinese collaboration.  That the Shanghai Gold Exchange is a physical only market is a LIE:

 

https://www.sprottmoney.com/blog/the-new-shanghai-gold-exchange-does-an…

 

The Chinese government defrauded and stole from their own Chinese citizens by encouraging them to buy gold at the top.  The Chinese bankers then colluded with JPM and Goldman Sachs to crash the gold and silver prices.  Large amounts of physical silver were leased out and sold into the physical markets by the Chinese authorities as well:

 

http://www.silver-investor.com/charlessavoie/cs_july04.htm

 

http://m.digitaljournal.com/article/279166

 

http://www.dnaindia.com/money/column-china-urges-citizens-to-buy-gold-a…

 

Do not forget:  It's the international ruling classes against the common folk.  That's the real meaning of globalism.

 

BobEore Maestro Maestro Sun, 01/21/2018 - 23:19 Permalink

\Welcome back MM!/

in the barren heaps of slag piled up here from the mining of hopes and looting of dopes who bought into the dream....

of a GOLDMANITE scheme to ONCE AGIN! DEFRAUD the lil guy...

by using their network of bought n paid for dupes, shills, and ho's...

your COUNTER-DISINFO shines like a starry sky and smiling moon!

I could counter this tripe all day n all night... total bullshit about Turkey increasing it's gold reserves etc., which witless shills cannot understand is nothing but paper shuffling and statistical sleight o hand...

but there's no audience for fact-based journalism nor truth in media. So it's simply a matter of watching as \stevie/ n co slip slowly down into the quicksand of their our mendacious distortions... and silence once agin invades the glue factory.

Now back/// to your intravenous drip of charts n farts for foolin folks!

 

In reply to by Maestro Maestro

silvermail Maestro Maestro Mon, 01/22/2018 - 10:03 Permalink

All your questions and all your logic are built on the foundation of your misconceptions about what is economics and politics.
You naively believe that the economy is a light bulb switch that burns in your kitchen.
But you are mistaken.

The economy does not work on the principle of a switch, with which you can instantly turn on or off any process. This is also true for the process of using the US dollar.

The bee never flies to the flower in a straight line. But this does not mean that the bee does not want to fly to the flower.

The movement of a car or a train is a process. You can not stop a car or train instantly. You will always have some kind of stopping brake distance. But this does not mean that you do not want to stop.

The same is true of all political processes. Because politics is a concentrated economy.

In reply to by Maestro Maestro

Silver Savior Mon, 01/22/2018 - 00:18 Permalink

It seems all of a sudden a lot of people are thinking or at least talking about gold. It used to be all about the stock market with a few hints of Bitcoin here and there. Now it's like everyone is scared. I know I am but have been for awhile.