Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: carranza2 who wrote (200833)	8/17/2023 3:14:21 PM
From: TobagoJack	Respond to of 217617

Re <<discouraging gold import>> Dunno. Certainly curious. As for all other matters, am suspicious of Bloomberg’s take. Let us watch. Cause / effect sometimes difficult to make out. China may or may not be issuing gold import quota. If China is not issuing quota, either China does not wish to import expensive offshore gold and wants global gold pricing to drop so as to GetMoreGoldLater and playing paper games, or / and China wants to have domestics pay more for gold imported earlier. Or something else entirely. Just woke up from slumber to GetMoreGoldNow, else am making it too easy for gold price manipulators. The outlook for Chinese gold demand looks fairly lackluster, according to Nikos Kavalis, managing director at consultancy Metals Focus Ltd. “It’s not great, it’s not bad,” he said. “But what we’re definitely seeing is tighter supply conditions bloomberg.com China's Gold Prices Rising Higher Than Rest of World Due to Import Curbs - Authorities are said to have cut quotas for overseas purchases - Premium of Shanghai price over London hits five-month high By Bloomberg News August 15, 2023 at 6:00 AM GMT+8 Updated on August 15, 2023 at 9:18 AM GMT+8 China’s gold price is rising against levels in London, a trend that local traders say is due to government curbs on imports of the precious metal. The Shanghai spot price was more than $40 an ounce higher than that in London on Aug. 14, according to Bloomberg calculations based on exchange data. That’s the biggest premium in more than five months, with the gap steadily widening from late June even as consumer demand in China remained sluggish. Authorities moving to limit gold imports appears to be a major driver behind the growing gap, according to traders and importers. The government has reduced or stopped issuing import quotas to some local banks, according to people familiar with the matter, who asked not to be identified as the information is private. That’s resulted in a drop in flows over the last few months, two of the people said, and there’s no immediate prospect of the affected quotas being issued again. The reason for the curbs isn’t clear. China vies with India as the world’s biggest buyer of gold, so demand and supply trends there can influence global prices for the metal. Chinese demand has struggled to regain momentum as the country’s economic jitters turn consumers off gold jewelry or investments in the metal, with purchases in those categories still below long-term averages. As recently as June, prices in Shanghai were at a discount to the international market. Money IssuesThe swing to a premium is being driven by tighter supply in China, the World Gold Council said in a report last week, without elaborating. While some bullion is still making its way to China, the volume of orders is weak, one of the people familiar with the matter said. The country’s imports of non-monetary gold fell 35% in June from the previous month to the lowest level since January. The People’s Bank of China typically issues quotas to financial institutions for the amount of gold allowed to enter the country, though the exact details of permitted volumes are never publicly disclosed. The PBOC didn’t respond to a faxed request for comment. Gold could be an attractive investment for Chinese facing a weaker domestic currency, and authorities may potentially stymie that trade — lending some support to the yuan — by squeezing import quotas. The offshore yuan fell toward its weakest level this year on Monday after an array of disappointing economic data fueled worries about sputtering growth. The outlook for Chinese gold demand looks fairly lackluster, according to Nikos Kavalis, managing director at consultancy Metals Focus Ltd. “It’s not great, it’s not bad,” he said. “But what we’re definitely seeing is tighter supply conditions.” — With Sybilla Gross and Winnie Zhu