Wednesday

China Now Imports 1,200 Tons of Gold

“The numbers speak for themselves. In 2012 I wrote that I can see 2,200 tons of net new buying per year in a market that produced (only) 2,700 tons (of gold). That was back in 2012. Just think, Eric, in the 12 months to August of 2011, China imported something like 100 tons (of gold). Now they import 1,200 (tons of gold). They’ve increased their tonnage (of gold purchases by a staggering) 1,100 tons.

If the total (world) supply, including recycling is 4,000 (tons), which I highly doubt, that means they’ve come in and bought an extra 25% of the market. How can somebody come in and buy an extra 25% of the (entire global) market at that same time that the price falls by 30% or 40%? It’s just totally ridiculous that it would ever manifest itself that way. If they bought (an additional) 25% of the oil, wheat, or the corn markets, the price would not be going down.”