London Admits Silver Squeeze Freakout, Chinese Gold Bid is Back

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by jhanders
Saturday, Apr 17, 2021 - 19:01

Big news broke last Friday morning by Reuter's Peter Hobson and others writing an exclusive report on revamping Chinese gold demand this April and May 2021.

Headlines read, "China renews appetite for gold with US$8.5 billion set to arrive as central bank relaxes quotas."

China’s appetite for gold jewelry, bars, and coins has recovered as the economy rebounded in recent months.

Around 150 tonnes of gold bullion are to be shipped by next month May 2021, five sources confirm (currently worth US$8.5 billion at today's gold spot price).

On behalf of, this is James Anderson bringing you this week's SD Bullion market update in video format below.

We had very fundamentally bullish bullion news this past week, have a look.

China Gold Demand Returns, London Silver Squeezed Bound

The gold spot price and silver spot price both had strong weeks in trading.

Let's see next week if gold can clear $1800 oz for gold, and the two precious metals can begin their inevitable climb out the 7-8 month consolidations they have made since early August 2020 record gold price highs.

The gold silver ratio tightened down at 68 to close the week.

This week the London Bullion Market Association or LBMA for short, published what is likely their first ever sole focused report on silver investment demand.

The report was most likely written by Metals Focus a precious metals consultancy based in London, which often too, writes the Silver Institute’s annual World Silver Survey which is actually regularly published.

This fifteen page report appears to be an attempt to gain back some control over much of the ongoing silver squeeze narratives online.

Thus far in 2021, silver investment demand remains at all time high levels considering the now nearly last five decades of this full fiat currency era ongoing.

I am going to highlight a few notes from my read of this, at times, London silver squeeze confessional.

Watch the video and market update embedded above, do not skip it.

To conclude this ZeroHedge post, the east is fully returning to the gold market, it's only a matter of time before that bleeds over acutely into increased eastern silver bullion demand too.

London appears wholly unprepared for what is building.

Perhaps the one thing that will save them are rapidly rising spot prices in fiat currency terms.

Judging by where the Trade Weighted fiat Federal Reserve note Index is, versus all other fiat currencies based on trade weightings. It looks very similar to the gold silver ratio chart we looked at earlier in this update.

There is also a long way to fall lower before we get back and likely beyond the 2011 low levels (see FRED chart).

Get long and be well-positioned silver and gold bullion before it becomes super obvious to those still distracted by persistent bubbles outside of the bullion markets.

Bubble bagholders will be the ones who pay you handsomely for doing so later and at way higher valuation levels.

That's it for this week's update, as always, take great care of yourselves and those you love.