Change is coming.
Guest Post by Jesse
China Acquired 2000 Tonnes of Gold In 2013, Almost Double World Gold Council Estimates
The lack of intelligent coverage by the media for this sea change in global asset allocations is remarkable.
Koos Jansen has been doing some terrific work in this area.
I have some suspicions about where the gold bullion that is leaving the Western funds and ETFs is going.
Gold is moving steadily from West to East.
SGE Chairman: 2013 Chinese Gold Demand Was 2000 tonnes
By Koos Jansen
Published: 10-10-2014 18:23This is the final blow for the ones who still couldn’t comprehend, after all evidence presented, the amount of Chinese non-government gold demand in 2013. At the LBMA forum in Singapore June 25, 2014, one of the keynote speakers was chairman of the Shanghai Gold Exchange (SGE) Xu Luode. In his speech he made a few very candid statements about Chinese consumer gold demand, that according to Xu reached 2,000 tonnes in 2013. In contrast to the Word Gold Council (WGC) that states Chinese gold demand was 1,066 tonnes in 2013. Xu’s speech has now finally been translated and published in the LBMA magazine The Alchemist #75.
Xu’s statements once again confirm what I have been writing for months. SGE withdrawals equal Chinese wholesale demand:import + mine + scrap = total supply = SGE withdrawals = wholesale demand
Let’s go through a couple of quotes from Xu:
Data on China’s gold imports has not previously been made available to the public. However, gold has historically been imported through Hong Kong, and Hong Kong is highly transparent, disclosing details such as the number of tonnes of gold imported on a monthly basis. Last year, China imported 1,540 tonnes of gold. Such imports, together with the 430 tonnes of gold we produced ourselves, means that we have, in effect, supplied approximately 2,000 tonnes of gold last year.
The 2,000 tonnes of gold were consumed by consumers in China. Of course, we all know that the Chinese ‘dama’ [middle-aged women] accounts for a significant proportion in purchasing gold. So last year, our gold exchange’s inventory reduced by nearly 2,200 tonnes, of which 200 tonnes was recycled gold.Again, we can read the simplified equation (for 2013):
import (1540t) + mine (428t) + scrap (229t) = SGE withdrawals (2197t)
I recommend that you read the entire article here.
Recently on USAWatchdog Greg Hunter has had several sky-is-falling financial analysts. One of the most interesting has been Harvey Organ and long time gold and silver expert
As I read Organ, China has been accumulating long positions in both gold and silver. The impression I get is that they’re in a possesion to demand physical delivery of the metals that Organ thinks the sellers don’t have.
Re silver ge comments, “Where is China going to get its silver? The only above ground hoard of silver that is left is at the Comex. I don’t think much is there, but whatever is left, China is going to grab it. . . . They have Comex surrounded (with long positions on silver) and that is the end game. It will be a physical default, and China is not going to sit idly by. China will want its silver back or it will say, ‘I will tell the world,’ or it will flood the world with its $3 trillion U.S. dollars. . . . The whole thing is going to happen all at once. By December, this whole thing is going to collapse. You are going to see it.”
What do you financial wizard and ouija board soothsaysers think? Is Henry Organ just another overly anxious Chicken Little or is he on to something?
I prefer reading Jesse. He is calm and reasoned and not selling a newsletter, product, or investments.
He also believes a default is coming, but he doesn’t know when. It is a certainty that there is more paper gold and silver than physical to back it up. It’s just a matter of time before a large party demands physical delivery and another financial institution (JP Morgan) fails to deliver.
Question anyone that puts a timeline on this thing. Don’t confuse inevitable with imminent. It is definitely inevitable.
Harvey Organ’s gold and silver blog has been deleted by Google.
Jesse’s Cafe American writes that ” Google has been easy to work with based on my own experience” – Try not to gag on Jessie’s comment, Administrator. – “Things like this generally involve either alleged copyright infringement or some sort of defamation.”
Another site , What Really Happened, is more suspicious and cynical. “FASCISTS DON’T LIKE TRUTH: Harvey Organ’s Gold and Silver Blog Has Been ‘Deleted by Court Order.'”
So, whether it’s Harvey this or Harvey that, we still have the $64 (000,000, 000,000) question: what’s going to happen with gold, silver, and our economy if the silver sellers have to hand over “what ain’t his’n or go to prison.”
Jackson: the silver sellers can’t hand over the silver because they don’t have it. The PM markets are the biggest pile of fraudulent bullshit in the world. The US govt once had billions of ounces of silver…all gone. How much gold is left in Ft. Knox? My bet is on very little. There hasn’t been a gold audit since the 50s. Germany can’t get her gold back. It goes on and on. Crazy Annie was right: unless you have your property in your hot little hands and can guard it with your AR15, it’s not really yours.