Commodity Trade Mantra

Posts Tagged ‘Chinese Gold’

China Bought Gold With Proceeds From Record Sale Of US Treasurys

In a month in which China sold a record $83 billion in Treasurys, it had no qualms about rotating the sale proceeds into gold. Or at least that’s what it was eager to telegraph with its data. However, even as China is buying gold, it is still doing so at half the pace of neighbour Russia. Between China and Russia, some 47 tons of gold were purchased in the open market in past month.

China One Step Closer to Becoming World’s Gold Hub

China, the world’s largest gold producer & buyer, feels its market weight should entitle it to be a price setter for gold bullion. The benchmark London ‘gold fix’, is under scrutiny because of long-running allegations of price manipulation. The New Chinese gold price benchmark may be launched before the end of the year.

Could Gold Production Peak in 2015 as Exploration Spending Drops?

Metals Focus predicted that 2015 could mark the end of the bear cycle for gold as demand looks “broadly balanced. A recent forecast by Goldman Sachs shows that 2015 will be the year when gold production peaks. Standard Chartered and Bank of America say gold will likely advance in 2015 even as Fed raises interest rates.

Gold Prices Will Hit Record On Surging Asian Demand, ANZ Says

Under our central case, gold prices are likely to rise gradually, eventually breaking through the USD2,000/oz level within the next decade. Rising incomes in Asia will increase gold demand as people purchase more jewelry and continue to channel savings into gold for cultural reasons, according to the ANZ report.

A Close Look At The Chinese Gold Lease Market

Current participants in the gold lease market are commercial banks, gold miners and jewelers. The Shanghai Gold Exchange also provides a crucial role in gold leasing. The SGE’s block trading system is the trading platform used by gold leasing participants; the SGE also provides transfer and settlement services.

Dramatic Increase in Gold Flows into China

Dr. Keith Barron: “I believe that most of the Western world’s gold, which is supposed to be in central bank vaults, has been leased out. Much of it is now in private hands in India, and what remains continues going East to China and other Asian vaults. So most of the Western gold has vanished from the vaults, and it’s now just a book entry.”

China Moves To Dominate Gold Market With Physical Exchange

The encouraging factor about the SGE and the SGE international platform is that there is a lot of physical gold flowing through the Exchange. Therefore, price discovery is not just based on an inverted pyramid of mostly unallocated gold as in London or mostly cash-traded futures paper gold as in New York.

The Strong Season For Gold Buying Starts

The strong season in Gold is just getting underway, with this metal’s summer-doldrums seasonal low in place. Major income-cycle and cultural drivers from around the world lead to outsized gold demand surges. And gold’s best months of the year are nearing as Asian harvest buying ramps up followed by the fabled Indian wedding season’s arrival.

The Chinese Gold Vortex

The Chinese Gold Vortex is putting an undeniable pressure on the physical market, while focus on price manipulation makes it progressively harder for price manipulators to operate. The reversal of this anomalous, yet explicable market dysfunction could provide astute investors with multi-hundred per cent returns.

Is Chinese Gold Demand Really Falling? Probably Not

Media reports that Chinese gold demand may be slipping, but so far this year, although Chinese demand may currently be down a little its holding up overall at historically high levels. Gold movement from West to East already appears to be exceeding newly mined supply, while scrap sources decline.

Chinese Gold Demand 418 Tonnes YTD, West Confused

In the West there’s still confusion about Chinese gold demand. Banks are trying to figure out how in 2013 China imported 1158 mt through Hong Kong & a few hundred metric tons through other ports, mined 428 mt domestically, while demand according to World Gold Council was just 1066 tons.

Gold Trade Numbers In 2013 Broke All Records

In 2013 we’ve experienced the kind of extreme buying power China is able to unleash on the physical gold market. Chinese wholesale demand in 2013 was 2200 tons & this excluded PBOC purchases. Let’s have a look on what actually happened & how much gold was distributed across the globe.

China October Gold Imports Surge To Second Highest Ever

Putting the total number of imports in perspective since our September 2011 expose in which we noted that it was now China’s explicit strategy to confidentially hoard gold, China has imported a whopping 2380 tons of gold in the past 26 months.

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