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Gold/Mining/Energy : Gold & PM's: Where To From Here? -- Ignore unavailable to you. Want to Upgrade?

To: Percival 917 who wrote (19)	5/12/2014 9:57:41 AM
From: Percival 917	Respond to of 20

Gold ALERT: A huge shift could be happening right now From Pierce Points: More confirmation last week of critical shifts underway in the gold market, with potential impacts on global demand patterns and prices. Reports from Hong Kong show that gold imports here have dropped considerably. Shipments during March fell 24%, to 85.1 tonnes. That’s down from 112.3 tonnes in February. That’s a big drop, representing a four-month low. The interesting question is: why? Analysts attributed the decline to a weaker yuan. Which has made gold less attractive to Chinese buyers of bullion. But it’s interesting that the fall in Hong Kong shipments coincides with another event: the announced opening of official gold imports through Beijing – the first time foreign bullion sales will be allowed directly through the capital. Up until now, Hong Kong has been the preferred channel for China’s gold imports. But authorities are reportedly uneasy about Hong Kong’s extensive reporting on trade. They are seeking instead to import gold more discreetly, by using Beijing as a “top secret” receiving point. Speculation is that this will allow China’s banks to build a big position in physical gold without global buyers realizing the accumulation is taking place. The fall in the Hong Kong gold trade jives with such a shift in buying. If Chinese purchasers really are moving to more-secretive sales through Beijing, we may see a permanent decrease in the amount of trade conducted through other cities. We could thus be witnessing the beginning of a new era in the global gold market. Of course, there’s no way to know for sure what’s happening with Chinese purchases. But the timing of the shifts in trade is interesting – signaling that this is a space we should be watching.