Commodity Trade Mantra

Posts Tagged ‘Shanghai Gold Exchange’

Sellers of Physical Gold Did Not Help Crash Gold Prices - Then Who Did?

The total volume of the crash in excess of 1,000 tonnes of paper gold contracts, dumped on the market in a matter of hours, makes it pretty clear that something ‘fishy’ was going on. So the main question remains, who sold? Clearly, the futures market crash was NOT caused by sellers of physical gold. But China & Russia will love & use the buying opportunity.

China On A Gold Buying Binge Despite Massive Debt For Obvious Reasons

Similar to that of other developed nations, China’s debt has also reached “bubbly” proportions. But they know that during the next crisis those nations with a large gold backing will not only survive, but will be prosperous as well! China will most certainly increase its gold reserves even further. Imagine if only a portion of their $1.22 trillion US treasury holdings are shifted to gold. BOOM…

Negative Yields On Global Government Debt Drives Gold Demand

It’s unprecedented that a third of all global government debt has negative yields. Which drives gold demand. Effectively what we’re seeing is people’s pensions being decimated because the policymakers have had very few if any alternatives left. It is in this environment that gold will help satisfy need. It’s more about protection of wealth rather than creation. That’s where gold plays.

The Gold and Silver Futures Market is Like a Rigged Casino - Here's Why

If you bet on the price of gold by either buying or selling a futures contract, the bookie might just be a bullion banker. He’s now betting against you with an institutional advantage & completely controls the supply of your contract. Someday we’ll have more honest price discovery in gold and silver, as people figure out the game & abandon the rigged casino altogether.

Physical Gold and Silver (Truth) will always prevail against Paper Futures (Lies)

In the battle being between physical gold and silver (Truth) & paper contracts (Lies), the indestructible PMs will always prevail & the time is nearing. Holders of physical gold and silver know, what is being “sold” is useless paper, not the real metal & as with QE-t0-infinity, bankers have pretty much run out of “fixes.” These are definite signs of the end game for PMs suppression.

Gold and Silver Manipulation may lead to Dollar Crash soon

Deutsche Bank revealed that gold and silver markets were fraudulently manipulated to protect the dollar. The geo-political gambit by China against the dollar is now underway in undermining the dollar’s foundation by taking over global gold pricing. Chances are high that within weeks we could see the reserve currency devalue precipitously, or at worst, collapse altogether.

The Effects Of The Shanghai Exchange On Silver Prices

The question that arose in our mind for the past few weeks has been: Are we seeing the effects of the Shanghai Exchange on silver? In other words, while the belief that the East is now overtaking the West in financial power, in the form of acquiring gold and silver, has been widespread, it has not yet been reflected in price behavior.

About 38% Of All The COMEX Gold In Hong Kong Left The Warehouses Yesterday

Very little gold bullion actually changes hands or goes anywhere in the Comex US. But Hong Kong is typically seeing large inflows and outflows of gold. Because that is how the precious metals market has been manifesting in Asia since about 2007: not with endless chains of paper just changing hands in a grand game of liar’s poker, but with the physical exchange of bullion.

Gold Reacts to Increased Odds of a December Rate Hike

India’s plan to tap idle gold may exceed expectations. Appetite for gold in China, which accounts for one-fifth of global investment demand, could fall as the country moves to internationalize the yuan. Gold prices may dip as the Federal Reserve hikes rates. But sustained economic strength in the longer run should start to push inflation higher, helping gold.

Gold and Silver unlikely to Rally till US Dollar can Forge Appearance of ‘Health’

If & when the elite’s corporate operations fall apart due do the unsustainable debt creation & the launching of so many regional wars around the globe in the service of maintaining the fiat Federal Reserve Note, “dollar, as the world reserve currency, only then will we likely see the end of the decline in gold and silver and some degree of higher prices.

Did COMEX Counterparty Risk Just Reach A Record High?

The turning point appears to have been the downturn in oil prices as traders began to hedge their counterparty risk in massive levered derivative positions tied to commodities. And it is not just banks… we suspect so is COMEX’s…The ‘claims per ounce of gold’ deliverable at current prices has spiked higher once again, to 126:1.

The War between Physical Gold vs Paper Gold Bullion Hots up

Investors in gold ETFs such as GLD are liquidating dismayed by the negative trend. Some of the physical gold released is simply migrating east, but this is small in comparison to the increase in demand from value buyers around the world. Considering all the factors, the odds favour a gold price recovery from current levels, if only to call a halt to the underlying redistribution of bullion.

China Plans To Launch Renminbi Gold Fix By End of 2015

If the renminbi / yuan gold fix takes off, China could compel local buyers & foreign suppliers to pay the domestic renminbi price, making the London gold fix less relevant in the world’s biggest bullion market. China feels it is entitled to be a price-setter for bullion at a time when the global benchmark, the London fix, is under scrutiny for alleged price-manipulation.

China Creates World's Largest Physical Gold Investment Fund For Central Banks

China’s new international gold fund expects to raise 100 billion yuan or $16 billion. About 60 countries have invested in the fund, which will in turn facilitate gold purchase for the central banks of member states to increase their gold holdings. The new project marks another step forward in the internationalisation of the Yuan.

PBOC Gold Purchases: Separating Facts from Speculation

PBOC buys gold with their foreign exchange reserves than with renminbi – China’s FX reserves are worth about $3.7 trillion & mostly held in USD. Gold on SGE is quoted in renminbi, so PBOC can’t exchange USD with gold there. PBOC is likely to buy gold abroad & these purchases should be added to the visible gold flows.

China’s Silk Road Economic Project Will Include Gold

It was first disclosed by Albert Cheng, Managing Director of World Gold Council, in a speech Apr 12, 2015; China has ambitions to include gold in the One Belt One Road (OBOR) economic project. His proposal suggested that cooperation & development mechanism to involve major gold producers/users along the OBOR.

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.

Thoughts On The Price Of Gold

Derivatives can be used by bullion banks and central banks to influence the price of gold. If the paper price goes down & physical demand increases this has to be met by equal physical supply, that is, if the price for physical gold follows the paper price. If the physical price disconnects from the paper price, premiums will appear at one location.

Will the "Shanghai Fix" fix the Gold Market?

If the gold market has reached some sort of watershed wherein the amount of available gold begins to dwindle and possibly dry up entirely, then China’s strategic economic interest would best be served by higher global bullion prices – the so-called second leg to its long-term gold market strategy.

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