U.S. Mint sees highest monthly gold eagle sales in over two years- Indians take advantage of low price in a season not typically known for gold buying- Chinese investors, disillusioned with stock market, are buying gold in large volumes- Demand for coins from Perth Mint 37% higher in June and even higher for July
The manipulative smash on the gold price on Sunday night has once again led to a surge of buying of gold coins and bars across the globe. Both the Wall Street Journal and Reuters report on how bullion dealers are seeing a spike in demand for gold coins and bars in India and China and indeed Europe, Australia and the U.S.The U.S. Mint – which ran out of Silver Eagles earlier in the month due to unexpectedly high demand – has sold 110,000 Gold Eagle one ounce coins so far this month according to Reuters.
This compares with a mere 21,500 ounces sold in May and 76,000 in June. It represents the highest level of monthly demand in over two years – with more than a week to go till the end of the month. In India, July is typically a quiet month for gold sales as farmers, who make up the bulk of the population, allocate their cash towards cultivation, according to the WSJ. However, the unusually low price has led to a surge of buying.
“Gold’s plunge to five-year lows this week has prompted a swift rise in demand from jewelry retailers in China and India, the world’s top consumers of gold, leading to a doubling of premiums paid on physical gold,” reports the WSJ via Marketwatch. The article goes on to quote an Indian jeweller :“Until now, the gold demand was very low because of the season. Demand has picked up noticeably as the common man thinks prices have bottomed out.”
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
U.S. Mint sees highest monthly gold eagle sales in over two years- Indians take advantage of low price in a season not typically known for gold buying- Chinese investors, disillusioned with stock market, are buying gold in large volumes- Demand for coins from Perth Mint 37% higher in June and even higher for July
The manipulative smash on the gold price on Sunday night has once again led to a surge of buying of gold coins and bars across the globe. Both the Wall Street Journal and Reuters report on how bullion dealers are seeing a spike in demand for gold coins and bars in India and China and indeed Europe, Australia and the U.S.The U.S. Mint – which ran out of Silver Eagles earlier in the month due to unexpectedly high demand – has sold 110,000 Gold Eagle one ounce coins so far this month according to Reuters.
This compares with a mere 21,500 ounces sold in May and 76,000 in June. It represents the highest level of monthly demand in over two years – with more than a week to go till the end of the month. In India, July is typically a quiet month for gold sales as farmers, who make up the bulk of the population, allocate their cash towards cultivation, according to the WSJ. However, the unusually low price has led to a surge of buying.
“Gold’s plunge to five-year lows this week has prompted a swift rise in demand from jewelry retailers in China and India, the world’s top consumers of gold, leading to a doubling of premiums paid on physical gold,” reports the WSJ via Marketwatch. The article goes on to quote an Indian jeweller :“Until now, the gold demand was very low because of the season. Demand has picked up noticeably as the common man thinks prices have bottomed out.”
Good article Whole Truth. Might add that website to my review list, that is a good summary of physical demand.
If central banks with gold holdings decided to sell of large portions they could push the price lower for years. Unlikely though.
Note that Strindberg thinks he knows better than this website (ah the arrogance of the ignorant). He believes the 5 ton dumping on market was done with the objective of maximising their sales proceeds and that an entity with those sort of gold holdings must be a clever market operator.
Good article Whole Truth. Might add that website to my review list, that is a good summary of physical demand.
If central banks with gold holdings decided to sell of large portions they could push the price lower for years. Unlikely though.
Note that Strindberg thinks he knows better than this website (ah the arrogance of the ignorant). He believes the 5 ton dumping on market was done with the objective of maximising their sales proceeds and that an entity with those sort of gold holdings must be a clever market operator.
maybe i am way off but, but in light of the other thread suggesting that now is a good time to short gold!!!, could it be possible that the entity dumping the gold had a lot of open shorts and that the loss from shorts could have outweighed the loss of dumping actual held gold onto the market? maybe some guru financial type can provide further details on market hedging
this could be kind of like the way happened with tandy electronics in the US recently, credit default swaps were held on the company debt, tandy were in the process of being about to default, the insurance company (CDS) seller realised that it was cheaper to provide tandy with the money to stop their default than to pay off the insurance contracts, keep tandy alive and then wind down CDS exposure and then let them default...
with respect to the low price, the Commitment Of Traders information indicates that Large Traders and Hedgers are trading relatively low contract amounts lately, from graphs it does seem that gold price and Hedgers/Traders contract size have some relationship, with contract size low and drop in price it would seem that a possible floor in the price is there or near about
maybe i am way off but, but in light of the other thread suggesting that now is a good time to short gold!!!, could it be possible that the entity dumping the gold had a lot of open shorts and that the loss from shorts could have outweighed the loss of dumping actual held gold onto the market? maybe some guru financial type can provide further details on market hedging
this could be kind of like the way happened with tandy electronics in the US recently, credit default swaps were held on the company debt, tandy were in the process of being about to default, the insurance company (CDS) seller realised that it was cheaper to provide tandy with the money to stop their default than to pay off the insurance contracts, keep tandy alive and then wind down CDS exposure and then let them default...
with respect to the low price, the Commitment Of Traders information indicates that Large Traders and Hedgers are trading relatively low contract amounts lately, from graphs it does seem that gold price and Hedgers/Traders contract size have some relationship, with contract size low and drop in price it would seem that a possible floor in the price is there or near about
Yes that sort of scenario is possible - that would fall into what I would classify as a "liquidity reason" for dumping it on the market. But I think you may be a little mixed up, if they had a lot of "open shorts" they would probably be in the money so wouldn't be in a loss position.
There are many possibilities. Generally speaking though that sort of volume being dumped on the market in one go is probably either for liquidity purposes or a market play as I suggested earlier. Strindberg thinks otherwise, that is ok he can think that.
If central banks with gold holdings decided to sell of large portions they could push the price lower for years. Unlikely though.
Note that Strindberg thinks he knows better than this website (ah the arrogance of the ignorant). He believes the 5 ton dumping on market was done with the objective of maximising their sales proceeds and that an entity with those sort of gold holdings must be a clever market operator.
Only the western CB's would sell, not the ones like russia and china who are buyers preparing for the collapse of the US dollar standard. There is much evidence too that the gold held in Western banks does not actually reide there now. A lot of leasing went on in the past 20 years and since places like fort knox haven't been physically audited for half a century they may be all but empty.
When they lease gold the theory is they still own it and will get it back one day, but the reality is once leased it can, and is, sold into the market to satisfy demand and keep the price down. I'm sure they some but not as much as the paperwork would imply. The US government used to be the biggest holder of silver on the planet, they stockpiled from 1930 till 1970 but it was all sold off cheaply in the end. They don't have a good track record of holding reserves.
As for strindberg, he's just a sock, one of shadows no doubt.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
Yes that sort of scenario is possible - that would fall into what I would classify as a "liquidity reason" for dumping it on the market. But I think you may be a little mixed up, if they had a lot of "open shorts" they would probably be in the money so wouldn't be in a loss position.
There are many possibilities. Generally speaking though that sort of volume being dumped on the market in one go is probably either for liquidity purposes or a market play as I suggested earlier. Strindberg thinks otherwise, that is ok he can think that.
the liquity purposes seems to be ringing ture, recent article on zerohedge suggesting continued selling may be related to CCFD unwinds in China
Only the western CB's would sell, not the ones like russia and china who are buyers preparing for the collapse of the US dollar standard. There is much evidence too that the gold held in Western banks does not actually reide there now. A lot of leasing went on in the past 20 years and since places like fort knox haven't been physically audited for half a century they may be all but empty.
When they lease gold the theory is they still own it and will get it back one day, but the reality is once leased it can, and is, sold into the market to satisfy demand and keep the price down. I'm sure they some but not as much as the paperwork would imply. The US government used to be the biggest holder of silver on the planet, they stockpiled from 1930 till 1970 but it was all sold off cheaply in the end. They don't have a good track record of holding reserves.
As for the other major western holder...
As for strindberg, he's just a sock, one of shadows no doubt.
Yes I've been reading a bit about this lately, it's very interesting. The big incentive for the US to push down the price of gold is to increase the attractiveness of US bonds in comparison. My latest readings suggest that is what happened up until around 2000. It may be happening again for the last couple of years but the US Fed is very secretive about their gold holdings and gold trades.
I'm sure that is the incentive for the US government, a low gold price makes paper bonds look attractive and a volatile gold price makes bonds look attractive. It's Quite simple to manipulate the gold market with paper gold if you also control the world's reserve currency and all nations of importance go along with it because they benefit as well. Which was the case up until 2000 abouts.
Now things have changed and China wants to play a different game, Russia and several others as well. Central banks are a relatively new invention, only 100 years now for most nations. Non-gold backed currencies is even a younger scheme of doing business, only since 1970. It's all a big experiment (or a scam if you look deeper) and there was never any guarantee floating currencies would work in the long run. And as we see they haven't. The turmoil in global bonds, markets and banks is the worst its ever been aside from during a major conflagration like WWII.
So much for this being the best of times hey.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
The demand must be having an effect since gold is back over $1500/oz.
"Panics do not destroy capital; they merely reveal the extent to which it has been previously destroyed by its betrayal into hopelessly unproductive works." John Stuart Mill
It's a bit silly to refer to central banks selling gold, because most of their gold is leased to the market. The real question is if they hoard or un-hoard real physical. But they can't un-hoard because they don't have a hoard. For all the gold the FED has on its books in recent years only about 400 tonnes has been seen in the vault. The only thing the central banks could do is hoard gold and send its price to $3,000+.
The next trick of our glorious banks will be to charge us a fee for using net bank!!! You are no longer customer, you are property!!!
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