Meanwhile…The Chinese Have Accelerated Their Gold Accumulation

Chinese Weekly Gold Demand Highest Since Late February, 787 MT YTD

In week 21 (May 19 – 23) Chinese wholesale gold demand, measured by SGE withdrawals, was 36.4 metric tonnes, up 22.98 % from the week before. This is the highest weekly demand since week 9 (February 24 -28). 

We sell, they buy – Ancient Chinese Secret – (article link)

8 thoughts on “Meanwhile…The Chinese Have Accelerated Their Gold Accumulation

  1. Cot report as of Tuesday 27 (May) for silver market

    38,453 is the number of contracts short, “managed money” category (hedge funds), the highest number for 2014, price : 19.03
    The highest number for 2013 was 32,332 on dec 3, price : 19.01
    The highest number for 2012 was 17,575 on July 24, price : 26.93

    38,518 is the number of contracts short, Commercial category (Bullion banks) , the lowest number in 2014, price : 19.03
    The lowest number in 2013 was 38,575 on dec 3, price : 19.01
    The lowest number in 2012 was 45,289 on Junuary 3, price : 28.78

    Again … It was Tuesday …

    Extreme situation.
    Are these data accurate? i don’t know.
    How long they can continue like this ? i don’t know.

    1. Ted Butler is adamant they’re not fraudulent. I disagree because it would be the ONLY numbers the banks report honestly.
      They are probably in the ballpark.

  2. From Economic Cycle Research Institute:

    It is Not Over

    Our longstanding prediction of more frequent recessions in the developed economies is now a reality. Among the G7 economies, all except Canada have seen yoy GDP growth decline to lows never seen outside recessions. Even in Germany and the U.S., which are widely touted as having comfortably skirted recession, GDP growth fell to lows not seen away from recessions in 50 years of data. What makes this even more striking is that all of these recessionary and near-recessionary GDP readings occurred despite unprecedented, concerted and massive global monetary accommodation, alongside other polices designed to pull demand forward.

    Freely download the report, including GDP charts:
    https://ecri-prod.s3.amazonaws.com/downloads/ECRI_1404ICO_Focus.pdf

    US Money Slump Flashes Warnings as Economy Contracts:

    The US seems caught in a Japan-style trap, endlessly masking the effect by stealing a little extra growth from the future with artificial stimulus. The US economy contracted sharply in the first quarter and bond yields have been falling at the fastest rate since the recession scare two years ago, in signs that bond tapering by the Federal Reserve is biting more than anticipated.

    The slowdown comes as a key indicator of the US money supply flashes slowdown warnings, though the picture remains murky after extreme weather conditions over the winter. “We think there is more to this than just weather. Our leading indicators were already weakening late last year,” said Lakshman Achuthan, from the Economic Cycle Research Institute (ECRI). “We may get a snap-back in the second quarter but I don’t see us reaching escape velocity. The economy is below stall-speed, according to the Fed’s own model,” he said.

    Professor William Barnett, a former Fed official now at the University of Kansas, said the weak M4 figures are a sign that the US is not recovering properly, leaving the Fed with a grim choice as it tries to wean the economy off emergency policies that are themselves causing havoc. “The Fed faces a ‘Catch 22’ decision. I am glad I am no longer on the Board’s staff,” he said.

    The concern is that this recovery may die of old age after five years, even though it has been the weakest expansion since the Second World War, failing to close the output gap or bring the long-term unemployed back into the workforce. The Fed fears it has exhausted its arsenal. “It is too awful to think about what will happen in the next recession, so nobody does,” said Mr Achuthan.

    https://www.businesscycle.com/ecri-news-events/news-details/economic-cycle-research-ecri-japan-style-artificial-stimulus

    The next crash is building up and it won’t be pretty. retail is going to get killed badly.

  3. If an entity (a trader) is in several category (managed money, commercials, swaps, spreading, others reportable, small speculators) you can report false longs and/or shorts positions in each category.
    example : my total net number of contracts is 6 :
    6 – 0 = 7 -1 = 12 – 6 = 5 +1 = 2+2+2
    equal (3-2) – 0 = (4+3) -1 = (24 – 12) – 6 = (7-2) +1 = (2002 – 500 -500 -500 -500 ) + (6 – 2)
    etc …
    like this you can hide position limits.

  4. Hello Dave,

    I tried to leave a comment for your article”Something Really Ominous Is Coming – Hold On Tight” I got a 404 error. You may want your web admin to have a look. I was at the sgtreport site and they have your article posted. Looks like lots of people have commented there. Thanks for the hard work.

    1. Thanks for the heads up – you and a colleague of mine in FL are getting the 404. Try clearing your browser cache. So far you and he are the only ones who have reported it. Maybe the NSA forgot to remove their block to certain ISP IP threads after they reviewed it LOL

  5. I notice the silver price has come under a lot of pressure. Other commentators have also suggested that the end of the silver fix on 14 August 2014 will lead to the un-wind of the OTC derivatives. Could the silver price be registering the harvesting price of the OTC positions?

    1. There’s just no way to know something like that. We have no idea what the terms of the silver contracts look like. The other thing is, I’m sure the counterparties will all agree on a replacement “benchmark” rather than go through the unwind process.

      OTC derivatives is a far bigger clusterfuck than anyone realizes.

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