China hording continues...

DSAbug

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http://www.zerohedge.com/news/hoard...urchases-record-100-tons-gold-april-hong-kong

The Hoarding Continues: China Purchases A Record 100 Tons Of Gold In April From Hong Kong


A month ago we were delighted to counterpoint Charlie Munger's prior remarks about the level of "civilization" of a given consumer based on their sentiment vis-a-vis gold, by demonstrating that Chinese purchases of gold from Hong Kong rose to a record. To wit: "Imports from Hong Kong were 135,529 kilograms (135.53 metric tons) between January and March, from 19,729 kilograms in the year-earlier period, according to data from the Census and Statistics Department of the Hong Kong government. Shipments in March rose 59 percent from February, yesterday's data showed." We have just gotten the April update, and, lo and behold, the country which is now the biggest buyer of gold, having surpassed India, just set a new record: "Gold imports by mainland China from Hong Kong climbed 65 percent to a record in April, advancing for a third straight month as investors sought a hedge against financial-market turmoil and an economic slowdown. Shipments totaled 103,644.5 kilograms (103.6 metric tons) in the month from 62,913 kilograms in March, according to export data from the Census and Statistics Department of the Hong Kong government today. In the first four months, imports were 239,174 kilograms from 27,114 kilograms a year earlier, according to Bloomberg calculations. China doesn’t publish such figures." In other words: in the first four months of 2012 Chinese purchases have increased by an unprecedented 782% over 2011.

And this is only from Hong Kong! Said otherwise: "Is the PBOC, which officially has just 1,054 tons of the yellow metal, quietly and relentlessly stockpiling gold?" Oh yes.

Expect a formal announcement from the Chinese central bank in the months ahead, indicating the country's gold hoard has increased by at least 100%. What happens then to the price of gold is rather self-explanatory.
Click the article to get zerohedge a hit... They deserve it for putting out pieces like this...
 

pmbug

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Sounds like they enjoyed the sub $1600 price tag.
 

ancona

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Charlie Munger is a world class douchetard. Are there actually people out there who still listen to that fucking troll? He needs to get back under that bridge and leave policy and investment advice to someone who actually gives a shit about their clients. Do these fossils EVER simply retire?
 

pmbug

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China wasn't the only one accumulating "huge tracts of" gold:
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A new and potentially significant source of demand is that of demand from Iran.

Iran imported a massive $1.2 billion worth of precious metals from Turkey in April alone.

Turkish exports of gold, precious metals, pearls and coins to Iran rose to $1.2 billion in April from a tiny $7,500 a year earlier, according to figures released by the state statistics institute in Ankara yesterday.

This is a massive increase in demand and suggests that there may be official involvement in the imports from the Central Bank of Iran.

This trend continued in May when Turkish gold imports leapt by 150% in May due to unrelenting demand from sanction strapped Iran.

Turkey imported 19.47 tonnes of gold in May, up from 7.78 tonnes in April, according to data released by the Istanbul Gold Exchange on Friday.

Foreign trade data showed Turkey earned $1.27 billion from exports of 23.9 tonnes of gold in April, dwarfing the $75.4 million earned from sales of 1.65 tonnes last year. Some 95 percent of the total gold exports went to Iran in April.

Turkey's gold imports in the first five months of the year totalled 35.18 tonnes, compared with 79.70 tonnes in 2011 and 42.49 tonnes in 2010.

Some of the increase was also attributable to the onset of the wedding season and regional tensions related to the 14-month-old uprising in neighbouring Syria. Although, official buying from Syria is not suspected.

The export data showed Iranian buying from Turkish gold traders has been the crucial factor.
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http://www.zerohedge.com/news/iran-...illion-usd-precious-metals-turkey-april-alone

Yeah, I'm sure this has nothing to do with India, et. al. buying oil with gold.
 

kjansen1969

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It's always safer for any State to invest in gold than in paper money as gold has more universal acceptance and can be used both as a currency as well as a commodity.
 
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