• Tag Archives China
  • Gold Market Morning: July-27-2017: rising despite heavy U.S. gold ETF sales!

    Gold Today – New York closed the day before yesterday at $1,248.40. London opened at $1,262.00 today.
    Overall the dollar was weaker against global currencies, early today. Before London’s opening:
    – The $: was weaker at $1.1728 after the day before yesterday’s $1.1654: 1.
    – The Dollar index was weaker at 93.50 after the day before yesterday’s 93.97.
    – The Yen was unchanged at 111.25 after the day before yesterday’s 111.25:$1.
    – The Yuan was stronger at 6.7377 after the day before yesterday’s 6.7506: $1.
    – The Pound Sterling was stronger at $1.3138 after the day before yesterday’s $1.3031: 1.
    Yuan Gold Fix
    The reaction to the Fed’s inaction not just on rates but on the timing of the contraction of the Fed’s Balance Sheet, interrupted the gold price relationship between global markets. New York closed at the same level as Shanghai yesterday, but London opened at just $2.50 below Shanghai’s trading level this morning. The price differentials between the global markets were nearly eliminated on the back of the Fed’s inaction. We look today to see just how global markets interact and to see if they are really narrowing their differences.
    If you had been following our commentary in the Gold Forecaster newsletter on China and the shift of pricing power to the east, you would not have been tempted to sell your holdings of gold or silver!

    This post was published at GoldSeek on 27 July 2017.


  • Demand for Physical Gold Up, Supply Down in First Half of 2017

    It’s easy to get caught up in what the Fed will do next, or the latest political brouhaha in Washington D. C. And of course, this stuff matters. But when it comes to gold, you should never lose sight of fundamentals.
    Nothing is more fundamental than supply and demand. Based on the GFMS Gold Survey 2017 H1 Update Outlook, the fundamentals for gold are trending in a positive direction. Demand is pushing upward, while supply is falling.
    Demand for physical gold rose to 1,895 tons in the first half of 2017, a 17% increase over the same period last year.
    Comparing the first and second quarter of this year also reveals an upward trend. Demand climbed in Q2 2017 to 957 tons. That was up from 938 tons in Q1, a 2% increase.
    Meanwhile, total supply dropped 5% in the first half of the year. Mine output was stagnant, falling by 0.2%. Production dropped precipitously in China and Australia, the world’s number one and number two producers. The amount of scrap gold also fell, helping to drive the decline in supply.
    In many ways, the demand increase signals a return to normalcy after a tumultuous 2016.
    After the rollercoaster ride of events for the gold market in 2016, from a jewelers’ strike to Brexit to Trump to demonetization, 2017 has avoided similar dramatic events in the first half, at least from a gold perspective with far right candidates seeing little success in a range of European countries. Indeed the first half of this year has arguably been more of a reversion to normality across much of the gold market, with neither the highs (of ETF demand) or lows (of truly pitiful Asian demand) that were recorded in the first half of 2016 being repeated.’

    This post was published at Schiffgold on JULY 27, 2017.


  • Gold A Good Store Of Value – Protect From $217 Trillion Global Debt Bubble

    – ‘Mother of all debt bubbles’ keeps gold in focus
    – Global debt alert: At all time high of astronomical $217 T
    – India imports ‘phenomenal’ 525 tons in first half of 2017
    – Record investment demand – ETPs record $245B in H1, 17
    – Investors, savers should diversify into ‘safe haven’ gold
    – Gold good ‘store of value’ in coming economic contraction
    by Frank Holmes, U. S. Global Investors

    Gold’s medium- to long-term investment case, I believe, looks even brighter. Many unsettling risks loom on the horizon – not least of which is a record amount of global debt – that could potentially spell trouble for the investor who hasn’t adequately prepared with some allocation in a ‘safe haven.’
    According to the highly-respected Institute of International Finance (IIF), global debt levels reached an astronomical $217 trillion in the first quarter of 2017 – that’s 327 percent of world gross domestic product (GDP). Notice that before the financial crisis, global debt was ‘only’ around $150 trillion, meaning we’ve added close to $120 trillion in as little as a decade. Much of the leveraging occurred in emerging markets, specifically China, which is spending big on international infrastructure projects.

    This post was published at Gold Core on July 27, 2017.


  • The Globalist One World Currency Will Look A Lot Like Bitcoin

    This week the International Monetary Fund shocked some economic analysts with an announcement that America was “no longer first in the world” as a major economic growth engine. This stinging assertion falls exactly in line with the narrative out of the latest G20 summit; that the U. S. is fading away leaving the door open for countries like Germany and China to join forces and fill the power void. I wrote about this rising relationship between these two nations as well as the ongoing controlled demolition of America’s economy in my article ‘The New World Order Will Begin With Germany And China’.
    I find it interesting that the IMF is once again taking the lead on perpetuating the image of a failing U. S., just as they often push for the concept of a single global currency system to replace the dollar as the world reserve. The most common faulty counter-argument I run into when outlining the globalist agenda to supplant the dollar with the Special Drawing Rights basket system is that “the IMF is a U. S. government controlled organization that would never undermine U. S. authority.” Obviously, the people who make this argument have been thoroughly duped.
    The IMF is constantly and actively undermining America’s economic position, because the IMF is NOT an American controlled organization; its loyalty is to globalism as an ideology as well as the international financiers that dominate central banking. America’s supposed “veto power” within the IMF is incidental and meaningless – it has not stopped the IMF from chasing the replacement of the the dollar structure and forming the fiscal ties that stand as the root of what they sometimes call the “global economic reset.”

    This post was published at Alt-Market on Thursday, 27 July 2017.


  • Turkey gold imports still riding very high — Lawrie Williams

    By our reckoning, Turkey has imported some 174 tonnes of gold in the first half of the current year. This reflects a degree of political turmoil both before and after the April referendum, which gave President Erdogan sweeping additional powers, but also Erdogan’s advice late last year that citizens should buy gold or Turkish lira rather than dollars in converting foreign currency or as a hedge against future uncertainties. It looks as though his advice has been well heeded as far as gold is concerned.
    This year’s imports to date have already exceeded the 106 tonnes imported in full year 2016, which in turn was more than double the amount imported in 2015. Thus this year’s figures represent an enormous increase on prior years’ figures and probably puts Turkey currently in place as the world’s third largest net importer of gold, after China and India.
    With Chinese gold demand remaining reasonably strong and Indian demand hugely up in the first half of the year ahead of the new GST imposition, gold flows from the West to the Middle East and South and East Asia have been very strong in the first half of the year and have probably accounted for just about all of the world’s new mined gold, which puts physical metal in short supply in the west.

    This post was published at Sharps Pixley


  • Spot The Outlier – Seattle Home Prices Go Vertical As Laundered Chinese Money Flows In

    Last summer we declared that “China’s favorite offshore money laundering hub is officially no longer accepting its money” after the city of Vancouver slapped a 15% tax on foreign real estate buyers. The tax was intended to curb a massive real estate bubble which had resulted from an influx of Chinese money over the preceding years. The move seemingly worked as it resulted in a staggering and immediate 96% drop in foreign buyers (see: Foreign Buying Plummets In Vancouver: Sales To Foreigners Crash 96%).

    This post was published at Zero Hedge on Jul 26, 2017.


  • Russian’s Add Official Gold While China Hides More Gold

    As China has cooled her heals as far as adding more physical gold to their official gold holdings, Russia pushes forward. Another month, another big pile of gold added Russia’s central bank holdings.
    While 8.5 tons is down from their norm, which is usually mid-high teens of tonnage per month, it is still pushing them higher in gold holdings.
    The interesting part of the China equation is the fact that Russia agreed to sell China upwards of 100 tons per annum beginning last year.
    As we reported in September 2016
    Wether China is going to making jewelry, trinkets or has other ideas we can confirm Russia will be supplying China with a lot of gold in the coming months and years – from Reuters
    VTB Bank, Russia’s second-largest lender, said on Tuesday:
    * VTB plans to supply 15-20 tonnes of gold to China in the next 12 months;
    * VTB plans to continue increasing gold supplies to China, the exact volume of supply is subject to demand in the region;
    * In April, VTB said it aimed to supply between 80 and 100 tonnes (2.57-3.22 million troy ounces) of gold to China per year;
    * In the second quarter of 2016, VTB dispatched its first batch of gold to China, becoming the first Russian bank to start direct supplies of physical gold to the world’s largest buyer and consumer of the precious metal.

    This post was published at Alt-Market on Tuesday, 25 July 2017.


  • Hecho En Mexico: 2017 Auto Production In Mexico Surges Despite Trump Attacks

    Earlier this year, before then President-elect Trump even moved into the White House, he picked several very public fights with auto manufacturers over their increasing reliance on Mexico for incremental production volumes.
    In a January 3rd tweet, the President-elect said ‘General Motors is sending Mexican made model of Chevy Cruze to U. S. car dealers-tax free across border. Make in U. S. A.or pay big border tax!’
    General Motors is sending Mexican made model of Chevy Cruze to U. S. car dealers-tax free across border. Make in U. S. A.or pay big border tax!
    — Donald J. Trump (@realDonaldTrump) January 3, 2017

    Then, on the same day, Trump took a victory lap after apparently convincing Ford to walk away from a new $1.6 billion production facility in Mexico. Of course, we’ve since noted that the production volume intended for that abandoned Mexico facility has instead been shifted to China…but who can keep track (see: Remember When Ford ‘Cancelled’ That Plant In Mexico? Well, They’ve Just Moved It To China).

    This post was published at Zero Hedge on Jul 25, 2017.


  • IMF Sees U.S. Fading as Global Growth Engine

    The world is leaning less on its biggest economy to sustain the global recovery, according to the International Monetary Fund.
    The fund left its forecast for global growth unchanged in the latest quarterly update to its World Economic Outlook, released Monday in Kuala Lumpur. The world economy will expand 3.5 percent this year, up from 3.2 percent in 2016, and by 3.6 percent next year, the IMF said. The forecasts for this year and next are unchanged from the fund’s projections in April.
    Beneath the headline figures, though, the drivers of the recovery are shifting, with the world relying less than expected on the U.S. and U.K. and more on China, Japan, the euro zone and Canada, according to the Washington-based IMF.
    The dollar fell to its lowest in 14 months last week as investors discounted the ability of President Donald Trump’s administration to deliver on its economic agenda after efforts by the Republican Senate to overhaul health care collapsed.
    ‘U.S. growth projections are lower than in April, primarily reflecting the assumption that fiscal policy will be less expansionary going forward than previously anticipated,’ the IMF said in the latest report.

    This post was published at bloomberg


  • Money Is Money, Wherever It Comes From

    One of the crucial things to understand about today’s world is that money is fungible. Whether it’s created in Japan, Europe, China or the US, once it’s tossed by a central bank into one or another part of the global economy, it eventually finds its way to a common pool of liquidity.
    So the modest US tightening of the past year (100 basis point increase in the Fed Funds rate, slight decrease in Fed balance sheet) has to be seen in a global context. And that context is still insanely easy. Here, for instance, is China’s ‘social financing’ – their term for total new debt:

    This post was published at DollarCollapse on JULY 25, 2017.


  • Hyundai-Kia Brutally Crushed in China, Mauled in the US

    Its largest & second largest markets. In how much trouble is it?
    Hyundai Motor Group is getting brutally crushed in its largest market, China, where it is, or rather was, the third largest automaker behind GM and Volkswagen. And it is getting mauled in its second largest market, the US, where it is the seventh largest automaker behind the Big Three US automakers and the Big Three Japanese automakers.
    Hyundai Motor Group came about in 1998 after the Asian Financial Crisis, when it obtained a controlling stake in Kia after Kia went bankrupt. The Korean conglomerate, in addition to automakers Hyundai and Kia, has other affiliates, including Hyundai Steel, logistics company Hyundai Glovis, and auto components supplier Hyundai Mobis, all of which are listed separately on the Korean stock exchange.
    These entities support and supply the automakers Hyundai and Kia and are dependent on what the automakers sell. And both automakers are in the same boat in China, where things were already hard before the 2017 collapse began.

    This post was published at Wolf Street on Jul 25, 2017.


  • JULY 25/COMEX OPTIONS EXPIRY AND AS ALWAYS GOLD AND SILVER ARE HIT: GOLD FALLS $2.10 BUT SILVER RESPONDS AND RISES 10 CENTS/GLD HAS A LOSS OF 9.17 TONNES/SLV HAS A LOSS OF 3.309 MILLION OZ/TURKEY…

    GOLD: $1252.40 DOWN $2.10
    Silver: $16.55 UP 10 cent(s)
    Closing access prices:
    Gold $1250.00
    silver: $16.52
    SHANGHAI GOLD FIX: FIRST FIX 10 15 PM EST (2:15 SHANGHAI LOCAL TIME)
    SECOND FIX: 2:15 AM EST (6:15 SHANGHAI LOCAL TIME)
    SHANGHAI FIRST GOLD FIX: $1259.96 DOLLARS PER OZ
    NY PRICE OF GOLD AT EXACT SAME TIME: $1254.25
    PREMIUM FIRST FIX: $5.71
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    SECOND SHANGHAI GOLD FIX: $1262.69
    NY GOLD PRICE AT THE EXACT SAME TIME: $1257.25
    Premium of Shanghai 2nd fix/NY:$5.44
    xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
    LONDON FIRST GOLD FIX: 5:30 am est $1252.00
    NY PRICING AT THE EXACT SAME TIME: $1252.50
    LONDON SECOND GOLD FIX 10 AM: $1254.40
    NY PRICING AT THE EXACT SAME TIME. $1254.50
    For comex gold:
    JULY/
    NOTICES FILINGS TODAY FOR APRIL CONTRACT MONTH: 6 NOTICE(S) FOR 600 OZ.
    TOTAL NOTICES SO FAR: 157 FOR 15700 OZ (.4883 TONNES)
    For silver:
    JULY
    122 NOTICES FILED TODAY FOR
    610,000 OZ/
    Total number of notices filed so far this month: 3149 for 15,745,000 oz
    XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
    WE HAVE NOW ENTERED OPTIONS EXPIRY WEEK:
    COMEX OPTIONS EXPIRY: TOMORROW JULY 26.2017
    LONDON BASED OPTIONS EXPIRY: JULY 31.2017 AT 11AM OR SO.
    (OTC/LBMA CONTRACTS)

    This post was published at Harvey Organ Blog on July 25, 2017.


  • Why Robots Will Win the Coming Trade Wars

    The first step to surviving a war is knowing which side you are on. But in a trade war, that’s not always easy.
    Suppose the US imposed tariffs on steel imported from the European Union. Prices on goods made with that steel would probably rise, but this would affect you only to the extent you rely on those particular goods.
    When the EU responded by slapping tariffs on items ‘Made in USA,’ it would hurt you only if your livelihood depended on those export revenues.
    Of course, we may be headed toward a wider trade war, which could cause more general price inflation, hurting everyone in some way – though I think it will be more targeted at first.
    But one group is sure to win in a trade war because demand for their services will skyrocket.
    Who are these lucky people?
    They aren’t people at all. They’re robots.
    Trade Talks Fizzle
    If you monitor trade and logistics news like I do, the signs are everywhere. Last week, US and Chinese negotiators met in Washington to cap the 100-day dialogue that Presidents Trump and Xi promised at their April summit.
    It didn’t go well, apparently.

    This post was published at Mauldin Economics on JULY 25, 2017.


  • The Central Banker Transition Is Happening Quietly In The Background – Episode 1341a

    The following video was published by X22Report on Jul 25, 2017
    Eight state have not recovered jobs since the great recession, we need to remember this is the manipulated job numbers. Case-Shiller reports prices for homes in the 20 cities have surpassed the housing bubble prior to 2008. Fed very worried about commercial real estate, apartment building are being built at an extremely fast pace. The Fed is pushing for a real-time payment system. The IMF has already hinted that they will most likely move their office to China within the next couple of years. The transition from one system to another is happening ever so quietly. The corporate media is now pushing the reason why the economy has been downgraded, its because of Trump.


  • Caterpillar Hits All Time High After Raising Guidance On Chinese Construction Boom

    As is customary for the heavy-industrial equipment manufacturer, Caterpillar yesterday reported its retail sales, one day ahead of earnings, and as we discussed, the number was solid with Caterpillar reporting the longest positive streak in retail sales going back 51 months.
    It was also a hint as to what the Dow-member would report today for its second quarter earnings, which showed a surprisingly strong performance with CAT posting impressive Q2 Q2 EPS of $1.49, above the Est. $1.25, and revenue of $11.33Bn, also beating estimates of $10.89BN, both largely due to the ongoing Chinese construction boom as the company itself admitted.
    “Our team delivered an impressive quarter. As demand increased, we continued to control costs and generated higher profit margins,” said Caterpillar CEO Jim Umpleby. “While a number of our end markets remain challenged, construction in China and gas compression in North America were highlights in the quarter. Mining and oil-related activities have come off of recent lows, and we are seeing improving demand for construction in most regions.”

    This post was published at Zero Hedge on Jul 25, 2017.


  • Lagarde Hints At IMF Being Based In China In Future

    In a comment sure to stir up questions over dollar hegemony (and new world order conspiracy thoughts), IMF Managing Director Christine Lagarde admitted during an event today in Washington that The International Monetary Fund could be based in Beijing in a decade.
    As Reuters reports, Lagarde said that such a move was “a possibility” because the Fund will need to increase the representation of major emerging markets as their economies grow larger and more influential.
    “Which might very well mean, that if we have this conversation in 10 years’ time…we might not be sitting in Washington, D. C. We’ll do it in our Beijing head office,” Lagarde said. Lagarde’s comments build on questions raised in May on The IMF’s push for World Money… Yi Gang, the Deputy Governor of the People’s Bank of China disclosed to the IMF panel that,
    ‘China has started reporting our foreign official reserves, balance of payment reports, and the international investment position reports.’ ‘All of these reports, now, in China are published in U. S dollars, SDR and Renminbi rates… I think that has the advantage of reducing the negative impact of negative liquidity on your assets.’

    This post was published at Zero Hedge on Jul 24, 2017.


  • Russian central bank still adding to its gold reserves — Lawrie Williams

    Unlike the other big central bank buyer of gold, China, Russia is continuing to add to its gold reserves and reporting its increases. China has not reported any reserve increases since last October, but the general belief is that it is almost certainly adding to its gold reserves big time regardless and only reporting its increases when it deems it opportune to do so. Certainly known gold flows into the country, together with its own gold output as comfortably the world’s No. 1 gold producer, suggests this as China’s estimated gold consumption probably only accounts for around half of that being absorbed by the country on an annual basis, and this disregards any gold being imported from unknown sources that may not find its way into official data.
    In June Russia added a further 300,000 ounces (9.33 tonnes) of gold to its reserves according to the regular monthly statement of its gold holdings by the Russian Central Bank. This brings its current total holdings to some 1,716 tonnes – still the world’s sixth largest national holding as reported to the IMF – and continuing to close the gap with the official Chinese figure of 1,842.6 tonnes. The June additions are much smaller than those reported for May (700,000 ounces or 21.8 tonnes), but more than the 6.2 tonnes it added in April. Russian gold reserve additions do fluctuate on a month by month basis, but recently it has been adding to its gold reserves at around 200 tonnes annually. For H1 2017 the total to date is 100.9 tonnes so the nation is right on track to add a similar 200 tonne amount to its official gold reserves in the current year.

    This post was published at bloomberg


  • New Age Mandate — Doug Noland

    There is no doubt that central bank liquidity backstops have promoted speculation, securities leveraging and derivatives market excess/distortions. I also believe they have been instrumental in bolstering passive/index investing at the expense of active managers. Who needs a manager when being attentive to risk only hurts relative performance? And the greater the risk associated with these Bubbles – in leveraged speculation, derivatives and passive trend-following – the more central bankers are compelled to stick with ultra-loose policies and liquidity backstops.
    After all, who will be on the other side of the trade when all this unwinds? Who will buy when The Crowd moves to hedge/short bursting Bubbles? This is a huge problem. Central bankers have become trapped in policies that promote risk-taking and leveraging at this precarious late-stage of an historic Global Bubble. These days, central bankers cannot tolerate a ‘tightening of financial conditions,’ and they will have a difficult time convincing speculative markets otherwise.
    I’m reminded of the Rick Santelli central banker refrain, ‘What are you afraid of?’ Yellen and Draghi seemingly remain deeply concerned by latent market fragilities. How else can one explain their dovishness in the face of record securities prices and global economic resilience. A headline caught my attention Thursday: ‘Bonds: ECB Gives ‘Green Light’ to Summer Carry Trades, BofA says.’ It’s been another huge mistake to goose the markets this summer with major challenges unfolding this fall – waning central bank stimulus, Credit tightening in China and who knows what in Washington and with global geopolitics.

    This post was published at Credit Bubble Bulletin


  • There Is Only One Empire: Finance

    Any nation-state that meets these four requirements is fully exposed to a global loss of faith in its economy, debt, balance of payments and currency.
    There’s an entire sub-industry in journalism devoted to the idea that China is poised to replace the U. S. as the “global empire” / hegemon. This notion of global empire being something like a baton that gets passed from nation-state to nation-state is seriously misleading, in my view, for this reason: There is only one global empire: finance. China and the U. S. both exist within the Empire of Finance. Virtually every mercantile nation with access to global markets lives, works and thrives/dies within the Empire of Finance. Every nation that allows capital to flow into its economy is subservient to the Empire of Finance. Every nation with capital and debt markets exposed to (or dependent on) global financial flows is just another fiefdom in the Empire of Finance. China has thrived within the Empire of Finance by creating more debt and at a faster rate of expansion than any other fiefdom. China has brought 20 years of future growth and income forward, and eventually that vein of “wealth” runs out as time advances into the stripmined future.

    This post was published at Charles Hugh Smith on MONDAY, JULY 24, 2017.