The BRICS Just Don’t Stop
Very recently, this Watchman wrote a seriesabout world demand ramping up in precious metals. This is doubly true of Eastern demand. Yet, unsurprisingly over the past few weeks, as the bullion banks have used a rising U. S. dollar as cover to knee-cap Comex spot prices repeatedly, Asia has stepped up their gold-buying game even more. In fact, the numbers coming in are stretching the ‘just in time’ precious metals delivery system to the brink, once more.
As great as the demand figures were going into early October, they’re even better now, and deserve another look.
As I wrote before, the West’s exchanges, specifically the Comex and LBMA, are the crooked mechanisms which control prices for silver and gold for the rest of the planet. Yet, the pricing power of those two crooked exchanges is not long for this world. Those wolverines are being de-fanged by the BRICS as we speak. It is not an easy process, nor is it a terribly quick one, as stackers well know, but once again, I urge those in our community to show the kind of self-assured patience that the Chinese and Indians nationals are showing.
Shanghai: A Black Hole for the World’s Gold
Not only have the Chinese kept up this brisk pace of gold-accumulation since late September, they’ve upped the ante several notches!
Check out these withdrawals:
Week 39: Demand was 45 tonnes.
Week 41: Demand was over 68 metric tonnes! This is the 3rd-largest, weekly demand total on record for Shanghai
Week 42: 51.5 tonnes of gold was withdrawn.
Incredible.
Look at this graph beneath, via Koos Jansen’s abode:
See that yellow line that represents the entirety of world gold mining supply? Now see the blood-red bar on the furthest right, slicing through the top of it like a lovely stream of magma from the exploding volcano, which we casually refer to as ‘Chinese gold demand’?
Make no mistake about it, the Chinese appetite for gold is most definitely volcanic!
This post was published at The Wealth Watchman on OCTOBER 27, 2014.
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