re china and gold, i remind all about china's longterm gold reform road travelled Message 25916530
and i note that the overarching direction had always been about getting the people to hold the gold, and heretofore not been about the state holding the gold
the latest constraints placed on the minor gold exchanges is good, because in a lot of ways work toward rationalization of the market, removing the riff raff, veering away from accountability/liability for invariable future gold-related scandals on the minor exchanges, and focuses trading where all can see.
iow, the latest announcements are net net very positive. it also demos that the authorities take the gold action very seriously. we must ask rhetorically, why?
w/ re to state accumulation of gold, china state designate some hk-based intermediaries / facilitators (generally large corporates w/ financial ops) answerable to the state to buy gold, and such accumulation of all flavors of metals (copper, gold, etc) do not show up on state balance sheet until such time they are formally xferred
to watch china import of gold, and accumulation of gold, would be difficult - one needs to watch china gold production / import / export, as well as hong kong gold import and re-export
i have no reason to believe there was much of a drop in november and december after all the adjustments and revisions are out by eop q1 2012
a hint au.ibtimes.com
Tuesday, December 13, 2011 3:01 PM EST
China’s HK Gold Imports Reach October Record HighBy Esther Tanquintic-Misa
Imports of gold from Hong Kong by China reached an all-time high of 85.7 tonnes in October, a 50 per cent hike from a month ago and up by more than 40 times from a year ago, data from the Hong Kong government showed.
It was the fourth consecutive month that China's gold flows from Hong Kong reached new highs, accounting for more than one-quarter of overall global demand.
Tom Kendall, precious metals analyst at Credit Suisse in London, said in the Financial Times he sees overall Chinese imports of the yellow metal hitting 470 to 490 tonnes for the full year, up from last year's 245 tonnes.
China had been encouraging its citizens to buy and hold physical gold, either in jewelry, coins or in bullion bars, in a bid to build financial reserves in assets stronger than the U.S. dollar, euro and other weakening currencies. The Chinese were forbidden to buy physical gold on pain of imprisonment until 2002, when government lifted the ban.
As of April 2009, official data from the People's Bank of China revealed some 33.89 million fine troy ounces were added to China's gold reserves.
Chinese consumer demand for gold bars and coins rose 24 per cent from last year to 60.2 tonnes in the third quarter of 2011, while demand for gold jewelry hiked 13 per cent.
In November, the World Gold Council reported that strong demand in investment and jewelry will drive China's total gold demand to hit 750 tonnes this year.
Chinese consumer demand for gold bars and coins rose 24 per cent from last year to 60.2 tonnes in the third quarter of 2011, while demand for gold jewelry hiked 13 per cent.
Global appetite will push further the yellow metal's unprecedented decade-plus bull run. The price of gold bullion is going towards its 11th year of consecutive annual gains aid by fears of a fiscal recession of pandemic proportions, ultimately displacing the boom-and-bust cycle norm. Prices are expected to hit $2,000 per ounce by mid-2012. |
