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Gold continued its trend lower Tuesday, but falling prices are boosting demand out of India and China, according to analysts. ...
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... lower prices are working in favor of the retail buyer in Asia, which suggests there could be a price floor in gold's recent selloff, said Commerzbank analyst Carsten Fritsch.
This is visible by looking at rising premiums in India and China. "Gold traders in India responded by demanding a premium of $2 per troy ounce on the official local price. The week before they had been forced to grant a discount of $18 per troy ounce. The higher demand is meeting with reduced supply after gold imports were postponed in anticipation of a possible cut in import tax that did not then materialise," Fritsch noted.
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In China, premiums were also raised by local sellers, Fritsch added. "Traders in China raised their price premium to $16-27 per troy ounce from $12-15 in the previous week. Jewellery retailers there are replenishing their stocks following the New Year festivities," he said Tuesday.
The rising demand points to how price-sensitive gold buyers are in the world's top two gold-consuming nations.
What this means for the global price of gold is that the overall move down could be limited, Fritsch pointed out. "Though this does not mean that they are able to drive prices significantly up, they can preclude or at least slow any further price fall," he said.
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those are intresting coins.....very large diameter but seem very thin ....when i handle one i feel like it would be easy to bend ....i am a fan of 1 ducats and in the past they provided extra ordinary value in gold coins, ducat pic for fun LOLI was looking at a few 4-ducat restrikes @ 3% above spot.
He'll thank you later!Brother-in-law was about to pull the trigger on $10k worth of silver from one of those silver houses. They wanted nearly $40 an ounce. Talked him into going with five Maple Leaves from Apmex instead.
He'll thank you later!
If all the gold in Ft. Knox is there then it's at most a 3 year supply. If othwrs wise up about gold then it's about one year's supply.
At least six Chinese banks have raised investment thresholds for their gold savings accounts, in an attempt to warn retail investors of potential risks amid a price rally and growing demand for the safe-haven asset.
Starting Friday the Agricultural Bank of China Ltd. increased the minimum investment to 550 yuan ($76) from 500 yuan for one of its gold deposit products, according to a March 22 notice.
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Chinese consumers are increasing their appetite for gold, seeking to protect their assets amid a volatile stock market, a depreciating yuan, and property doldrums, which analysts said would continue to boost international gold prices coupled with geopolitical uncertainties.
Consumers in China bought 308.9 tonnes (10.9 million ounces) of gold in the first quarter, representing a 5.9 per cent increase compared with the same period in 2023, according to data released by the China Gold Association on Friday.
Purchases of gold bars and coins, which largely reflect investment and hedging demand, surged by 26.8% year on year to 106.3 tonnes, while gold jewellery sales declined by 3% from a year earlier to 183.9 tonnes.
But China's domestic gold production rose by 21.2% to only 139.184 tonnes in the first three months of the year, with 53.2 tonnes produced with imported ores or materials, indicating an overreliance on overseas suppliers.
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That ended in 2005, but it is pegged against a basket of currencies.The real estate market in China is imploding and the yuan is fixed to the $USD, but not to gold. Many Chinese citizens have created a mania believing the price of gold will continue to drop while other assets implode.
It is not “ fixed to the $USD,”. It is managed though.It (yuan) doesn't float.
Jan Nieuwenhuijs said:Chinese private sector gold imports accounted for 543 tonnes in the first quarter, while the People’s Bank of China (PBoC) added 189 tonnes to its reserves over this time horizon. Most of the PBoC’s purchases are “unreported.” China continues to be the marginal buyer in the gold market, driving up the price. I expect that China will remain a robust buyer of gold going forward in support of the price.
In my latest article on global gold flows from March 2024, “China Has Taken Over Gold Price Control from the West,” I showed that in 2022 China broke the peg between the US dollar gold price and “real yields.” Instead of being price sensitive China had become a driving force of the gold price. The data at my disposal ran until December 2023 which made me hesitant to conclude the sharp increase in the gold price since late February was also caused by the Chinese. However, as new data has been released, I can confidently say that China initiated the current bull market.
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Nope, the Shuibei gold market is not an Exchange, it's a physical market. They don't send out, buyers have to go there, put it in the bag and bring it home. Those bars are real.Probably filled with tungsten for shipment to the west…
As the New Year and the Spring Festival approach, the gold market in Shenzhen City, south China's Guangdong Province, is experiencing a peak seasonal demand.
Shuibei market, a gold jewelry manufacturing and trading hub in Shenzhen, consumer flow and gold sales are both seeing a spike.
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"The foot traffic has increased by about 40 percent compared to last month. Especially on weekends, the crowd is so large that some salespeople struggle to keep up with demand," said Wu Qian, a gold retailer at Shuibei market.
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China's November net gold imports from Hong Kong more than doubled from the prior month, while the return of price premiums also suggests the world's top gold consumer is getting back into gold in a big way.
China imported a net 33.074 metric tons of gold in November, the Hong Kong Census and Statistics Department announced on Monday. This represents a 115% increase from the 15.414 tons recorded in October and is the highest level of net imports since April 2024.
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Several Chinese banks have sold out their gold products after surging prices of the safe-haven asset fueled investors’ enthusiasm.
On the app of Industrial and Commercial Bank of China, Ruyi Gold bars of 5 grams, 20 g, 50 g, 100 g, and 200 g are out of stock, with only the 10 g option showing limited availability.
The gold spot price at the London Stock Exchange rose over 1 percent to an all-time record of USD2,942.71 per ounce yesterday, marking the eighth time this year that the price of the precious metal hit a new record.
The 10 g and 20 g Chuan Shi Zhi Bao gold bars of Agricultural Bank of China are sold out on the lender’s app, and the 100 g and 200 g ones are on a tight inventory. Meanwhile, the China Construction Bank app shows that only the 50 g and 100 g investment gold bars are available, priced at CNY688.80 (USD94.23) per gram.
Gold bars on the apps of Postal Savings Bank of China and Bank of China are in the preorder status.
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