Koos Jansen
BullionStar Blogs
Koos Jansen
Posted on 4 Jul 2015 by

Global Financial Turmoil, Gold Price Doesn’t Move

It’s remarkable the Greek tragedy has had no influence on the gold price in recent weeks. We’ve heard repeatedly Europe and Greece could not reach a deal for an extended bailout, are financial markets suffering from Euroscrisis fatigue?

Team Dijsselbloem-Juncker states they stretched all they could and offered the Greek government a reasonable deal that would require more reforms the Hellenic Republic, but team Varoufakis-Tsiparas will not agree with the proposed reforms. On Thursday June 25 another final meeting ended with no success, while Greece had a payment of €1.6 billion to the IMF coming up on June 30, negotiations were pushed to Saturday June 27. Dangerous territory, a bank holiday usually kicks of in the weekend when financial markets are closed.

Again, on Saturday June 27 no agreement could be reached, crowds started to appear at ATMs in Greece. The Greek government closed the banks, only allowing people to withdrawal €60 a day, and organized a referendum (held on Sunday July 5) to let the Greek people decide if the latest offer from their creditors should be accepted, yes or no.

On June 30 Greece defaulted by not paying the IMF €1.6 billion, followed by a media war between team Varoufakis-Tsiparas and Europe in which both sides are accusing each other of spreading false rumors on the current state of affairs; shaking the fundamentals of the great European project.

Concurrently the Chinese stock market fell into an abyss, from a peak on June 12 down 29 % on July 3, nearly ¥15 trillion yuan (over $2 trillion dollars) was moved out of the Shanghai Composite Index. Yet, recent financial turmoil has not moved the gold price. Not in dollars (or renminbi, as the renminbi is pegged to the US dollar):

Screen Shot 2015-07-04 at 11.44.35 AM
From BullionStar Charts

Not in euros:

Screen Shot 2015-07-04 at 11.45.03 AM
From BullionStar Charts

This smells like market rigging. Surely, the last thing the authorities need at this moment is gold on the move. Various media and bullion dealers reported demand for physical gold in Europe is strong. Walter Hell-Höflinger, owner of a gold shop in Austria, stated: “The critical thinkers have lost faith in politicians, their currencies and in the media. The price of gold is actually artificial.”

I’ve asked Torgny Persson, CEO of BullionStar.com in Singapore, and CEO of LibertySilver.se and LibertySilver.ee in Europe, about the recent sales dynamics at his bullion shops. This is what he told me:

- Precious metals demand in the last week leading up to the Greek referendum has been about 150 % higher than normal both in terms of order quantity and order volume. This is true for Bullionstar.com as well as for LibertySilver.se and Libertysilver.ee

- Based on my conversations with the western world’s leading refineries and precious metals wholesalers, they have experienced similar increases in the last week.

- There’s however no shortage of gold or silver at this point although bottlenecks in minting capacity may soon lead to prolonged delivery times if the demand is kept up. 

During week 25 (June 22 – 26) gold withdrawn from the vaults of the Shanghai Gold Exchange (SGE) accounted for 46 tonnes. Year to date 1,162 tonnes have been withdrawn.

Shanghai Gold Exchange SGE withdrawals delivery only 2014 - 2015 week 25

Withdrawals have been strong in recent weeks, however, at this point it’s not sure if SGE withdrawals equal Chinese wholesale demand. We’ll find out if more trade data is released.

In short, for the first time ever a developed country has defaulted on an IMF loan, the future of the euro is at stake (kindly note The Netherlands and Germany have backup currencies ready, that’s partially the reason they repatriate gold), the stock market of the world’s second largest economy declined by nearly 30 % in less than three weeks, but the gold price doesn’t move.

Rigging markets can be very effective, short-term. Remember ABN-AMRO wrote in June last year “gold’s safe haven status should be revised”, because the gold price was moving sideways since 2013. Some analysts and investors forget about thousands of years of history and go with the trend. No matter how you look at it, gold is in a bear market, but will it remain there?

Tomorrow the Greeks will vote and the European struggle continues. In fear of a financial meltdown China has desperately ordered fund managers to invest $19 billion of their own money into stocks, it suspended IPOs and launched a market-stabilization fund. Let’ see what happens.

Just in:

Germany suggests Greece could exit eurozone ‘temporarily’

Greece must introduce another currency if “no” vote wins – Schulz

Chinese banker: “The government must rescue the market, not with empty words, but with real silver and gold,”

Koos Jansen
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  • rowingboat

    Rigging when a market doesn’t do what you think it should do, Koos?
    Where in the import/export data do you see a flight to physical buying? I see continued dishoarding this year by various countries who used to be significant importers.
    Has there been a surge in deliveries from SGE vaults as the Chinese stock market tanked?
    Keith Weiner’s supply/demand analysis will be interesting tomorrow. However, gold will be sold in a need for cash, e.g. 2008 credit crunch, so I’m not surprised by recent weakness.
    In fact just look at the hundreds of tonnes that left Korea during the Asian Financial Crisis in the late 1990s.

    • Gustav

      No rigging? Are you just dumb to play dumb in front of seasoned gold/silver market watchers?

      • rowingboat

        I’m a seasoned gold watcher myself, for three decades.
        Yes, the rigging excuse is a ‘Get-Out-Of-Jail-Free’ card for poor/lazy analysis.
        If you haven’t done so, compare the physical gold flow through Switzerland in 2015 with the historic flow, 1982-2014:
        Be warned however, this requires a lot of time to plot the data and more than a 5 minute attention span to analyse the results.
        However, do this for all of Switzerland’s trade partners, invest the time, and you’ll begin to see what I’m talking about.

        • jj

          Rowing ..

          Your data only counts gold and silver “coin” deliveries.
          What about the 400 oz. good delivery bars which is what central banks/governments mainly hold?
          Can you show me where central banks/governments have been dishoarding those reserves?

          • rowingboat

            This is the code you need (non-monetary gold, i.e gold not owned by central banks), including 400 oz good delivery:
            “7108.1200 – Gold, incl. gold plated with platinum, in unwrought forms, for non-monetary purposes (excl. gold in powder form)”
            This is a global standard used by other countries too. Just beware that while Switzerland exports in fine form, its gold imports include impure gold (mined dore, jewelry etc), which you need to convert to fine form. You do this by extracting the CHF value of gold (instead of tonnage) and divide it by the average gold price for that month/year. You can get tabulated gold price data from WGC:

          • jj

            The WGC counts jewelry/scrapmining supply as having a meaningful effect on the gold price/demand when there is somewhere between 170,000-175,000 tons of gold on surface so 2000 to 3000 tons of supply/year is basically nothing in comparison ..
            The demand in jewelry collapses with high gold prices and the opposite with low gold prices.

            All i could find under the code you gave was import taxes by various countries.

            How could the WGC possibly discern any demand/price standard in a floating currency/gold regime,as the gold price generally,but not always moves opposite of currency levels,so i think that is a flawed analysis by the WGC ..

          • rowingboat

            The link to the WGC I provided is for gold price data in various currencies, historic to present day. Download the spreadsheet. Use average price data to derive fine tonnage from gross tonnage in a given month or year. Go to the Swiss database (link above) and extract imports/exports for code 7108.1200. You can then download spreadsheets from 1982-2015 and you will see that Switzerland has imported 42,000 tonnes over that time, where the gold came from and where it flowed to. Almost half of the gold in existence has been mined over this period and approximately half of it passed through Switzerland. Create plots for all of Switzerland’s trade partners and very interesting patterns emerge, how the market has evolved through time. Do the same for other countries: UK, USA, Canada, Hong Kong etc and a more holistic view of the market comes into view. No need for conspiracy theories.

          • jj

            Point out Rowing,where i used any conspiracy theories.
            Don’t try and build a straw man that you can beat when debating me .

            As for your link,it requires a login and e-mail and i’m not prepared to be inundated with e-mail updates etc.
            I did google the code as i said above and all i got was the tax rate/per importing country.

          • rowingboat

            You can see a series of comments above blaming manipulation/ conspiracies because the gold market isn’t behaving how it “should”. My comment is more in response to the general mood here.
            If you don’t want to register with the WGC that’s up to you. I’ve personally had no email/spam that I’m aware because of it. Historic gold price data is also freely available at Kitco.com.
            Just click on the link below. This has a spreadsheet (1982-2013) to download then look for the code inside it (column T). To access data after 2013 go into their database and search for the same code:

          • Gustav

            You have failed, by spending too much time and effort here.

          • Gustav

            Last but not least, it is clear that you can write, but is the job market really that bad to secure a proper job?

          • rowingboat

            Through hard work comes understanding, knowledge and profit. I’ve given you a heads up, now go for it. Start plotting the data I referenced for your benefit… begin with Switzerland then move to UK and the other countries mentioned.

          • jj

            Ok i looked at it but i don’t understand the part about it being priced in chf and being able to discern any solid data from that..

            You said ..
            “You do this by extracting the CHF value of gold (instead of tonnage) and
            divide it by the average gold price for that month/year. You can get
            tabulated gold price data from WGC:”

            for eg ..
            Using chf/usd/gold exchange rate (for an example) and as well,through those years, there were wild fluctuations in all currencies vs. chf which would have an adverse effect on your/WGC gold import formula. imo

            (Using 1 year highs)
            1982- 1.50
            85- 2.90
            87- 1.52
            89- 1.70
            91- 1.22
            95- 1.10
            01- 1.84
            05- 1.12
            you get the point

            I think this better explains what discerns the price of gold and why the price moves higher or lower (no conspiracy)

          • rowingboat

            Yes, there’s more error/uncertainty when the gold price is volatile but in most years the gold price moves less than plus/minus 5-10%. There are two ways to do the calculation:

            1) use average CHF gold price/oz for a particular year using WGC data and convert to per tonne value (multiply by 32,150 ounces in a tonne); or

            2) use the spreadsheet itself. Switzerland exports in fine form so you can divide ‘total export value’ by ‘total export tonnage’ to derive average CHF value/tonne for that year. Then apply this value to calculate how many tonnes of pure gold were imported by dividing it into the column of CHF import value.

            I’m a big fan of the Acting-Man site, in particular his macroeconomic assessment of gold price movements, which make sense because investors, particularly Western investors, are the big swingers in the market as evidenced by such large net imports and net exports to/from the London Bullion Market. This is why quantifying the physical flows are so useful.
            I think the price rose so much from the 2001 low because investors had almost completely sold out, with maybe 1000mt left in London vaults, excluding central bank holdings. Investors started pulling gold into the UK, peaking at approximately 5,500mt in 2012/13, which has fallen by 2000mt since, most of it to China.

          • jj

            2) use the spreadsheet itself. Switzerland exports in fine form so you
            can divide ‘total export value’ by ‘total export tonnage’ to derive
            average CHF value/tonne for that year. Then apply this value to
            calculate how many tonnes of pure gold were imported by dividing it into
            the column of CHF import value.
            I understand that but it leaves a lot of assumptions or guessing imo .

            So how and where does the cost of up blending and re-refining to pure,factor into those calculations,is it counted in as a part of the import value or export value,or is it counted at all?

            Are mining company exports from those countries into Switzerland counted as imports along with scrap?

            I suppose your WGC data could be used as a proxy but the bottom line is,whoever is selling is finding a buyer at some price,there cannot be only sellers and the gold price has been flat USD since 2013 and if you live in Australia the price has increased 21% and in my currency it’s up 19% so it’s not all gloom and doom for gold..

            The gold price might go either way from here and there are a lot of contrary indicators for both scenarios .

          • rowingboat

            The refining costs for gold bars, which Switzerland exports are negligible, <1% above the spot price. Yes, scrap and imports from mining companies are included… countries like Argentina and Chile export mainly dore, which you see in the data and their tonnage needs to be reduced accordingly.
            Plot how Switzerland's export markets have changed over time, where the demand was in the 1990s and how these countries turned to suppliers (Italy, Japan, UAE, Saudi Arabia and most recently in 2015, Turkey). Look what happened to the ebb and flow during the QE years, how flows to HK reverse, etc etc.

    • JanNieuwenhuijs

      By all means, I would not like to say the price should be higher because I think so. But, I think we both know interventions are common and it can also happen in gold. This post was meant as a comparison between financial unrest and the price of gold, I leave it to the reader if gold is under or over-valued.

  • DrGod

    Its simple. Kicking Greece out makes the Euro stronger. Just like a fence is only as strong as its weak link, the same with the Euro. So the Euro went up.

    The world does not care about owning gold so the world is not buying gold.

    Watch the video of Mark Dice trying to give away a 1 oz coin. Nobody knows the price so nobody cares.

    Watch the Walking Dead, in the apocalypse story that people watch on TV not once has an oz of gold been used as a trading object. If the financial system collapsed I would rather get cigarettes, cans of food, bullets as trade than gold. I certainly would not part with my rations for you shiny coin.

    Get over it. Nobody cares and never will.

    Crying manipulation is like going into a casino and then losing and saying the game was rigged.

    Gold bugs make no sense. The gold standard was a fiat standard too. Gold was arbitrarily set at a price, just like how the dollar is. If you had a free market gold standard then the price would fluctuate by the day and people would waste so much time figuring out when to buy stuff.

    Just deal with the fact you were wrong and stop crying.

    • jj

      Gold bugs make no sense. The gold standard was a fiat standard too. Gold
      was arbitrarily set at a price, just like how the dollar is. If you had
      a free market gold standard then the price would fluctuate by the day
      and people would waste so much time figuring out when to buy stuff.


      That statement makes no sense .. the dollar has no set price .. it floats and has done so since shortly after Nixon closed the gold window ..

      Gold and the dollar and every other currency in the world float and compete against each other all the time ..

      No manipulation of gold?

      Try this one ..

      Fed Chairman Alan Greenspan during Congressional testimony on derivatives in 1998

      “Central banks stand ready to lease gold in increasing quantities should the price rise.”

      Or this ..
      Citicorp, JPMorgan, Barclays, and RBS are pleading guilty to charges
      tied to forex manipulation, while UBS is pleading guilty to
      interest-rate manipulation charges.

      Read more: http://www.businessinsider.com/libor-rigging-criminal-charges-and-fines-2015-5#ixzz3ezg9lmyv

      Three banks accused of rigging Euribor

      HSBC, JP Morgan and Credit Agricole under investigation by European Commission
      over allegations of cartel behavior


      Of course Gold could not possibly be manipulated .. could it?

      • rowingboat

        All of which provide convenient excuses when the gold price declines. Many years ago CPM Group released a brilliant presentation debunking many fashionable conspiracy theories at that time, including full transcript of Greenspan’s 1998 comments, putting his gold reference into context. 1998 was also the peak year that Koreans were selling bullion by the hundreds of tonnes but how would you ever know that reading your typical gold promo site?

        Manipulation theories get blown out of all proportion and are therefore
        dangerous to ones financial health (unless you’re a conspiracy peddler selling them to naive gold bulls). This was exemplified by GATA several years ago on KWN, around the time gold peaked. They claimed a 100-1 bullion bank run was in progress that would send gold into orbit. In a way that run actually happened (China) and the gold price collapsed, not what they were expecting! So layers keep being added to the onion.

        If you want to understand the gold market, track the physical flows: Switzerland, UK, USA, Canada, Hong Kong, and India. All of this data is now available, much of it in almost real time, which explain so much from where gold is mined to how/where it reaches the market. One can also glean gold holdings at a national level over past 2-3 decades. Almost half of the gold in existence has been mined since 1980.

        • JanNieuwenhuijs

          Is the CPM presentation online?

          Physical flows don’t tell everything about the gold price. If supply is greater than demand 100,000 tonnes can move to China but it will lower the price. That’s what makes it difficult.

          • jj

            Rowing ..
            First of all .. I do not follow GATA which is mostly hype imo.

            Personally i’m in the deflation camp and i believe it’s possible that the price could fall to possibly sub 1000 before it resumes any meaningful uptrend.

            Are you saying that the gold price or currency and interest rates cannot be manipulated,either up or down by market makers and are you saying that events such as Canada dumping 700 metric tons on the open market has no downward effect on the price and what about Gordon Brown announcing “pre-sale” that England would sell 400 tons and Switzerland later,dumping 1700 tons on the market?
            Of course none of that would have an effect in suppressing the gold price?

            btw ..How was Greenspan’s statement to congress put into proper context and by who?

          • rowingboat

            Gold didn’t need to be suppressed because supply was abundant, which is why there was a bear market for so long.
            New CIP/CIL processing technology meant gold production had exploded higher in the 1990s, former gold investors were divesting to buy the soaring stock market and, most importantly, Clinton was running budget surpluses with projections US government debt would be paid off in ten years. On top of that we now know that the Asian Financial crisis was increasing supply substantially.

            With that backdrop, central banks started selling gold in this new paradigm of low inflation/high growth/government surpluses and Australia’s central bank was one of the first to get the ball rolling in 1997. It got to the point where you couldn’t turn on the TV without another central bank announcing a sale. So preemptive sales were announced, including the 1999 Washington Accord, in an attempt to stabilize the market. Of course gold bugs took a conspiratorial view because the market wasn’t doing as it should, and all of these bearish factors were overlooked.

          • rowingboat

            I thought I’d saved the link but didn’t unfortunately. You can try googling it, my guess 10-12 years old.
            Physical trade flows are residual. As Jeff Christian mentioned in his Kitco interview that you posted on your former blog site, Western investment demand at that time was still healthy, just that investors were buying from other investors who were selling. Therefore gold demand was being met internally, not needing to be imported. Notwithstanding, the cross-border transparency we now have, Swiss and UK data in particular, is fantastic.

    • JanNieuwenhuijs

      Who said anything about armageddon? Whenever one mentions gold price suppression some people immediately assume they must be in the armageddon-everything is a conspiracy camp. There are actually many many shades of grey.

      I’m just open to the possibility the price of gold is suppressed. I’ve seen enough to know it can happen. Does it happen now? Don’t know. Perhaps investors overall think there are no dangers on the horizon and all global financial turmoil is a little bump in the road.

    • baruch

      Your 5000 year horse and money comparison is pure casuistry. Nobody said that paper money can’t exist side-by-side with gold. I assume your doctorate is in modern day economics, from the same institution as Dr Yellen? By the way, nobody but the world economy is crying.

    • Big_Shiny_Au_Nuggets

      @DrGod the bullion troll…

      ‘The world does not care about owning gold so the world is not buying gold.’

      You either have no idea whatsoever…or you are a shill on the payroll to undermine the merit of bullion investment.

    • lorkoos

      I’d like to see Mark Dice try that in China or India.

    • Big_Shiny_Au_Nuggets

      “Get over it. Nobody cares and never will.”

      What…about your inane opinion?

      You’re actually a big fan of Bill Holter aren’t you?

  • Hendry Machin

    Kicking Out Greece doesnt make the Euro stronger-it simply draws attention to the indebtedness of Portugal,Spain,Italy etc-of course it doesnt matter very much until it matters a great deal-that’s the nature of markets
    Cigarettes are no good if the person you want to trade with doesnt smoke;Tinned goods are perishable-what good are bullets if you have a gun pointed at you.
    Mark Dice’s videos are good-so many people who haven’t a clue about the monetary system,so many people like you who are dead wrong-wait till the system fails at the centre and these people,like you ,will be flabbergasted.
    Gold has had value for 5000 years- gold coins of the pre Greek period are fetching record prices-there is no fiat currency that has survived more than 100 years.Many have failed within twenty.
    ‘Nobody cares and never will’-On the contrary why are Central Banks withdrawing their Gold from New York & London and repatriating it?
    All our inflation problems began when Nixon announced a temporary (44 years and counting) suspension of convertibility-unlimited credit leads to unlimited greed and unlimited criminality.

    • DrGod

      Keep averaging down an asset that can’t break it’s inflation adjusted highs with news that is bullish for that asset is dead money.

    • DrGod

      What good is gold if you have to flee or move locations (kind of heavy)?

      What good is gold if you can’t assay it (did you just buy tungsten)?

      What good is gold if the other party doesn’t want it?

      Gold bugs make the claim nobody will want dollars one day but ignore that nobody wants gold. People wanted to own the etf, but not gold.

  • JanNieuwenhuijs
  • Bill Rice

    This should be prime common-sense evidence of manipulation. Major turmoil in Greece and the price of the historic haven metal … declines?!

    This is what is supposed to happen when a potentially turbulent situation is “solved.”

    Author’s hunch is right: Whenever an event/development happens that might cause precious metals to soar, the suppressors go into hyperdrive to prevent this scenario from occurring.

    … Which shows they are terrified of said scenario. Which is why they have been suppressing and capping price for years.

    • wheresthefreemarket

      Why Did Citigroup’s “Precious Metals” Derivative Exposure Just Soar By 1,260%

      And also: how is it legal that JPM
      is solely accountable for 96% of all commodity derivatives while
      Citigroup is singlehandedly responsible for over 70% of all “precious
      metals” derivatives? Surely even by the most lax standards this is illegal, but what makes the farce even greater is that all of this taking place out of FDIC-insured entities!

      The final question, which we are absolutely certain will remain
      unanswered, is whether any of these dramatic surges have anything to do
      with the recent move in precious metals prices, or rather the complete lack thereof, even
      as Europe is on the verge of its first member officially exiting the
      Eurozone, and China’s stock market is suffering its worst market crash
      since 2008. Oh, and we almost forgot: with both JPM and Citi now well over 50% of the derivatives market in two critical categories, who is the counterparty!?

      We have inquired with the OCC about both the derivative moves of both
      JPM’s “commodity” and Citi “precious metals” surges, both rising by
      over 1000% in the past quarter. We will promptly inform readers if we
      hear back, which we won’t.


      • rowingboat

        China’s stock market suffering its worst market crash since 2008 isn’t translating into an acceleration of physical buying by the Chinese, evidenced by SGE delivery data. The Chinese market isn’t reacting how you think it should.

    • rowingboat

      Not so because in times of crisis gold is sold, insurance for a rainy day. In the Asian financial crisis, late 1990s, people who owned gold sold it and survived. Hundreds of tonnes were exported out of Asia, evidenced by the Swiss trade data.

      The same happened during the 2008 crisis and, even where I live in Australia which escaped lightly, gold shops sprouted up everywhere, people were selling their jewelry and morning TV shows explained to viewers how to get the best price.

      So we can be sure people are dumping gold right now because they have to. And the potential buyers? They may become evident at a national level from import/export analysis, e.g. many countries were hoarding gold during the QE years 2009-11, which are exporting it now.

      • Green Onions

        No. Gold is sold in large enough quantities to move price downward AFTER a major financial crisis is OVER, or when fear and the risk of financial meltdown is absent from the markets.

        No Greek citizen in their right mind — or anybody living where the euro is their currency — should be selling gold right now. That would be akin to canceling your homeowners insurance while a massive forest fire is bearing down on your house.

        • rowingboat

          According to observations by one commenter here, ‘sb’, it’s been happening. Gold is flowing from the Mediterranean countries into Germany.
          The bigger risk IMO, and as one gold analyst put it yesterday, is that a Greek default blasts massive holes in the balance sheets of banks who own their debt. Those balance sheets are denominated in euros and dollars not bullion, so gold will likely be sold in a credit crunch, at least initially like 2008.
          But I do understand your main point. In the year that the gold price peaked in 2011, I count 35 countries competing for gold out of Switzerland. In 2015 you can count them on one or two hands with China, HK, India and Singapore being the main net-importers. Many of the rest are returning their gold.

        • DrGod

          Or they could just get USD, which people accept and the conversion is easy. Plus you don’t need a wheel barrow to carry and its easier to prove its not fake, as most people can’t assay a bar.

          Gold is inconvenient that’s why nobody buys it.

  • Deanna Clark

    Next to go down…France. Bet those banks are licking their chops.

  • Ron Bruce

    Not that many years ago any movement in the US dollar index was reflected in an opposite move in the price of gold – this indicated the common sense that, as the US dollar lost or gained value, gold moved in the opposite direction as a store of value.
    Some years back, (2013 ?) this no longer occurred – the US dollar virtually flatlined (around the 80 level) while the price of gold continually fell over the next two years.
    To me this indicated that the US Govt, the FED or the cartel of Central banks are all colluding to manipulate the price of gold.
    Also look at the Gold:Silver ratio. While silver an industrial metal, with a multitude of uses that consumes vast amounts of it annually, it’s price continues to fall against gold.
    When one reads about the positions currently held by Citi and JP Morgans, as well as being aware of the above facts, it makes no sense to say that PMs are not manipulated.

    Lastly, let’s not forget the elephant in the room – China!
    It is very much in the interest of China to keep the POG as low as possible while the vacuum up all available gold on the planet…!

    • rowingboat

      It’s not manipulation because a market doesn’t behave how you think it should. An enormous amount of gold was pulled into many countries, particularly during the QE years, which is being unwound after 2012/13. Many investors bought then sold and moved on. The market has to absorb that selling pressure and mine production the size of Germany’s reserves each year. Silver was also bought as an investment; and you can quantify how much silver was imported into London during the bull market from UK trade data.

  • esqualido

    A lot of Greeks are probably forced to sell gold and silver to get their hands on Euros. If they start issuing drachmas, it is another story. IMHO

    • Green Onions

      If that is true, it hasn’t been enough to reduce the price of gold in euros. In fact, gold is up in euros this year.

  • DrGod

    Like I said nobody cares about gold. If you think the Yuan will be backed by gold you don’t know Chinese history. The silver exchange standard that China maintained is taught in State textbooks as one reason the opium war tactics were so successful. It is taught as a weakness. I know none of you have done any research as you just regurgitate gold bug propaganda.

    China encourages its citizens to buy gold because they are going to devalue vs the dollar and the gold will protect against their devaluation giving more dollars to China. It’s not for a gold backed yuan, you’d know this if you studied history.

    Gold will become interesting at USD$650…BEEN SHORT SINCE $1850.

    Gold is not money. Sorry cry babies!

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