RE:GOLD $2000, Next Stop! Gold Cycle Targets $5,000 - China and Russia are racing to develop their own SWIFT payment system.
As far as gold and silver is concerned, we had another raid today right after both London first and second fixing of gold. It seems they are relentless in their attacks. Strangely for the second straight day, gold and silver jumped in the access market as soon as the comex closed.
Today we have commentaries concerning the sanctions placed on Russia and their retaliation. Also China and Russia are racing to develop their own SWIFT payment system. Once implemented that would be the death knell to the dollar.
China's strength growing while U.S. dominance wanes and unfortunately some sort of war. Like it or not, the U.S. has put itself in a position of growing isolation. Everything we do is one sided. Our financial and economic reports are blatantly bogus and foreigners know this. We even allowed U.S. banks and financial institutions to omit or falsify financial reports after 2008 in the interests "of national security". Think about this, you are an investor thinking about investing in a bank or a broker (in a moment of delusion) and you decide to read their financial reports. Only thing is, they are not correct. The reality is the bank is insolvent and broke but they don't have to tell anybody because of an Executive order (I think it was Bush who signed this). Here is my point, the Chinese know, the rest of the world knows, our allies (Germany in particular) know, we are broke, we lie, cheat and steal. If this can be done in private, good. If not, "oh well, who's going to call us on it?". Well, what is happening in my opinion is the world, led by China are preparing to "call us on it" with China pulling the strings. We will wake up to an entirely different world one day where the table is no longer slanted in our favor...I see a future where the "slant" to the table will be in a direction not favorable to the U.S.. This will surely be more than a wake up call to the unsuspecting! Regards, Bill Holter
$2000 Gold, Next Stop! 7-Year Gold Cycle Targets $5,000 & $333 Silver September 9, 2014 by The Doc 58 Comments 10,745 views
These are the Final Summer 2014 ‘Buy-of-a- Lifetime’ lows here and now. Next expect to see $1600, $2000, $3500, $5000+ Gold in the final 7-years sabbatical cycle! The 3rd and final 7-year Bull Market cycle officially began in July 2014 as stated in the Secret 21-year Gold cycle update mentioned above. $2000 Gold is NEXT and will be followed by many higher high price targets into the year 2021 when Gold is expected to reach $5000 minimum and Silver is expected to reach $333 basis a 15:1 Gold to Silver peak ratio once again.
Traderpenny thanks, former Fed chair Alan Greenspan warned in a recent keynote address that when all the liquidity that has built-up in the system finally comes out of reserves parked at the Fed and hits the commercial markets, we're all going to be very surprised at how quickly inflation picks-up. If the Fed gets surprised as well, they may once again find themselves chasing inflation higher with incremental rate hikes, that will catapult the gold - ex....
International gold trading launched in Shanghai free-trade zone City's free-trade zone toured by Premier Li Keqiang as Shanghai Gold Exchange unveils its trading platform for international investors PUBLISHED : Friday, 19 September, 2014, 4:56am UPDATED : Friday, 19 September, 2014, 4:56am Daniel Ren in Shanghai ren.wei@scmp.com
Li Keqiang has been a strong advocate for the free-trade zone, despite facing obstruction from ministry-level authorities. Photo: Reuters
The Shanghai Gold Exchange officially launched its international trading platform in the city's free-trade zone (FTZ) last night, the first such board in the zone, with hopes of setting benchmark prices for the precious metal in Asia.
It could pave the way for the launch of crude oil futures and other key commodities including iron ore in the testing ground for mainland economic reform.
Premier Li Keqiang made an inspection tour of the 28 square kilometre zone yesterday following a no-show on September 29 last year, when it was inaugurated.
"The free-trade zone in Shanghai will have a brighter future and Shanghai will have a brighter future," the premier told officials and others during the tour, Xinhua reported. "I wish the FTZ to be prosperous and developed."
The premier required the exchange to do its utmost to increase its influence globally, central bank governor Zhou Xiaochuan said at the launch ceremony last night.
Li was a strong advocate for the Hong Kong-style free port and made the final decision on creating the zone in Shanghai last year despite facing obstruction from ministry-level authorities.
The Shanghai Futures Exchange planned to start trading oil futures in the first half of this year on a newly established trading platform in the zone, but it has yet to receive the green light.
Li yesterday asked local officials to be clear in requesting specific policy support from the central government, indicating that he would push the ministry-level regulators to speed up liberalisations in the zone.
The Shanghai Gold Exchange was expected to unveil the international exchange on September 29, but it launched the platform 11 days ahead of schedule to coincide with the premier's visit.
The mainland's equity and commodity markets are still off-limits to foreign investors since the yuan is not fully convertible, but the central government is eager to internationalise the currency and gain pricing power in key commodities worldwide.
The zone is seen by the premier as an ideal "offshore" market and an experimental ground for pilot liberalisations.
About 40 international members including Goldman Sachs will participate in the gold trading in the zone, which links with the domestic trading on the Shanghai Gold Exchange.
China leapfrogged India to become the world's largest gold bullion buyer last year and the World Gold Council predicted that gold demand from mainland investors would remain strong.
"If the trading volume in Shanghai was high, Shanghai would definitely have an influence in global gold prices," said Albert Cheng Leung-ho, the council's managing director, Far East.
This article appeared in the South China Morning Post print edition as Global gold trading launched in Shanghai
Shanghai Gold Trading: The Real Challenge to London
Wednesday, 9/17/2014 12:55 If China remains a one-way street for gold, it cannot become the world hub...
SHANGHAI this week launched a new international gold exchange inside the city's free-trade zone, writes Adrian Ash at BullionVault.
Most everyone thinks this is important because "global gold traders [see] the zone as a gateway to China's huge gold demand." But that's the wrong way round. Because if it's to have any real importance, let alone challenge London's dominance, the Shanghai FTZ gold bourse must mark a step towards China's gold output and private holdings flowing out into the world, not the other way round.
Start with the situation today. China and the UK could hardly be more different when it comes to gold. China is the world's No.1 gold-mining producer, the No.1 importer, and the No.1 consumer.
The UK in contrast...and despite spending its way to household debt worth 140% of income...has no gold jewellery demand to speak of. Private investment demand is also tiny compared to Asia's big buyers
On the supply-side the UK hasn't had any gold-mine output worth noting since 1938. Nor does it currently have any market-accredited refineries for producing large wholesale bars.
So you might think China plays a bigger role in the international gold market than does the UK. Yet nearly 300 years since it first seized the job, London remains the center of global gold flows, trading and thus pricing. For now at least.
Net UK gold imports, monthly data in tonnes, 2005-2014
Since 2004, and with no domestic mine output and next to no end demand, the UK has imported over 6,800 tonnes of gold, according to official trade statistics – more than China but behind India, the former No.1 buyer. It has also exported nearly 5,000 tonnes, more than any country except No.1 bar refiner, Switzerland.
That's in a global market seeing some 4,500 tonnes of end-user demand per year. Because London is the heart of the world's gold bullion market, and the central vaulting point for its wholesale trade. (Same applies to silver, by the way – the UK was the world's No.1 importer and exporter in 2013.)
The relationship with prices is clear. When UK trade data (hat tip: Matthew Turner at Macquarie) show metal piling up in London's vaults (which also offers the deepest, most liquid place for large investors to hold their gold in secure vaults, ready to sell or expand at the lowest costs) prices have tended to rise. But when the rate of accumulation in London is slowing, prices have tended to fall. Gold prices have sunk when London's vaults have shed metal.
On BullionVault's analysis, those months since end-2004 where Dollar gold prices rose saw net demand for London-vaulted gold average 38 tonnes. Falling prices, in contrast, saw London's vaults lose 16 tonnes per month on average (imports minus exports). Exclude the gold-price crash of 2013 and we get the same pattern. Average net inflows when Dollar prices fell were only 15 tonnes per month between 2005 and 2012. Rising prices, in contrast, saw London vaults add 48 tonnes net on average per month.
So what's happening with London-vaulted gold really does matter to world prices. Far more, to date, than what's happening to China's flows.
Why? The Middle Kingdom's modern gold boom has come in mining, importing and refining. But in exports it just doesn't figure. Because bullion exports are banned, thanks to Beijing deeming gold to be a "strategic metal".
Never mind that China now boasts 8 gold refineries accredited to produce London-grade wholesale bars. Out of a world total of 74, that's more than any other country except Japan. But Chinese-made wholesale bars never reach London (or shouldn't...) because they are dedicated by diktat to meeting its world-beating domestic demand alone.
China's inability to export gold bullion puts a big block on it affecting world prices. Because while metal is drawn into China when domestic prices rise above London quotes (the so-called "Shanghai gold arbitrage" trade) it cannot flow the other way when Shanghai goes to a discount. Traders can only exploit the price-gap in one direction.
Global investment flows are further locked out by Beijing's block on foreign cash coming into China – another key difference between the UK and China in all financial trading, not just gold. Shanghai vaults have therefore been closed to international gold investment to date. So the impact of global flows on pricing has completely passed China by.
This may start to change this week however, with the Shanghai Gold Exchange launching its new international gold exchange inside the city's huge free-trade zone on Thursday. Six major Chinese banks will provide clearing and settlement services. The first 40 approved members of the exchange include London market makers HSBC, UBS and Goldman Sachs. But whether global investors will choose to hold gold in Shanghai vaults remains to be seen. China's premier, Li Keqiang, approved Thursday's opening by visiting the free-trade zone. But that hardly masks the fact that China is still a one-party state, notionally Communist with strict controls on financial flows as well as political views. Whereas London, even in the dark days of 1970s exchange controls – which barred UK investors from buying gold, as well as moving cash overseas – still freely allowed foreign money to come and go as it pleased, not least through the City's world-leading gold and silver markets.
Remember, China's gold market has only answered Chinese demand so far. Its mine-supply leads the world...but cannot reach it. China's demand has needed further imports from abroad to supplement what Chinese mines produce. That demand leapt when world prices fell in 2013, doubling China's net imports through Hong Kong from 2012 to well over 1,000 tonnes. But that clearly shows that – for now – its gold market remains a price taker, not a price maker. The running is made instead by free-flowing investment cash choosing to buy or sell down gold holdings worldwide, and that decision shows up in London, center of the world's bullion trade.
Yes, Shanghai's new free-trade zone gold market marks one step towards changing that. Yes, the FTZ is very likely to replace Hong Kong as the stop-off point for gold imports entering the world's No.1 consumer market. But only a truly liberalized gold trade, with foreign cash and gold flowing in...and out...right alongside China's domesic flows will challenge London's 300-year old dominance.
Shanghai Gold exchange (SGE thereafter), approved by the State Council and founded by the People's Bank of China, performs the regulated functions stipulated by Management Rules of Gold Exchange and organizes gold transactions with the principle of openness, fairness, justness and honesty.
$2000 Gold, Next Stop! 7-Year Gold Cycle Targets $5,000 & $333 Silver September 9, 2014 by The Doc 58 Comments 10,745 views
These are the Final Summer 2014 ‘Buy-of-a- Lifetime’ lows here and now. Next expect to see $1600, $2000, $3500, $5000+ Gold in the final 7-years sabbatical cycle! The 3rd and final 7-year Bull Market cycle officially began in July 2014 as stated in the Secret 21-year Gold cycle update mentioned above. $2000 Gold is NEXT and will be followed by many higher high price targets into the year 2021 when Gold is expected to reach $5000 minimum and Silver is expected to reach $333 basis a 15:1 Gold to Silver peak ratio once again.
Traderpenny thanks, former Fed chair Alan Greenspan warned in a recent keynote address that when all the liquidity that has built-up in the system finally comes out of reserves parked at the Fed and hits the commercial markets, we're all going to be very surprised at how quickly inflation picks-up. If the Fed gets surprised as well, they may once again find themselves chasing inflation higher with incremental rate hikes, that will catapult the gold - ex....
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