• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 16 hours Permian in for Prosperous and Bright Future
  • 33 mins Daniel Yergin Book is a Reality Check on Energy
  • 2 hours Gepthermal fracking: how to confuse a greenie
  • 8 hours YPF to redeploy rigs in Vaca Muerta on export potential
  • 7 hours US after 4 more years of Trump?
  • 9 hours Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 58 mins The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days US Oil Refinery Fexibility
  • 2 days China Must Prepare for War Says State Media
  • 2 days Interconnection queues across the US are loaded with gigawatts of solar, wind and storage
  • 17 hours Surviving without coal is a challenge!!
  • 1 day Portuguese government confirms world record solar price of $0.01316/kWh
  • 2 days Trump's Drilling Ban Bombshell Rocks Oil Industry
Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Another Sign of Big Changes in Gold?

More confirmation last week of critical shifts underway in the gold market. With potential impacts on global demand patterns, and prices.

Reports from Hong Kong show that gold imports here have dropped considerably. With shipments during March falling 24%, to 85.1 tonnes. Down from 112.3 tonnes in February.

That's a big drop. Representing a fourth-month low.

The interesting question is: why?

Analysts attributed the decline to a weaker yuan. Which has made gold less attractive to Chinese buyers of bullion.

But it's interesting that the fall in Hong Kong shipments coincides with another event. The announced opening of official gold imports through Beijing--the first time foreign bullion sales will be allowed directly through the capital.

Up until now, Hong Kong has been the preferred channel for China's gold imports. But authorities are reportedly uneasy about Hong Kong's extensive reporting on trade. Seeking instead to import gold more discreetly, by using Beijing as a "top secret" receiving point.

Speculation is this will allow China's banks to build a big position in physical gold. Without global buyers realizing the accumulation is taking place.

The fall in Hong Kong gold trade jives with such a shift in buying. If Chinese purchasers really are moving to more-secretive sales through Beijing, we may see a permanent decrease in the amount of trade conducted through other cities.

We could thus be witnessing the beginning of a new era in the global gold market. Of course, there's no way to know for sure what's happening with Chinese purchases. But the timing of the shifts in trade is interesting--signalling that this is a space we should be watching.

Here's to going for the gold,

By Dave Forest


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News