Koos Jansen
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Koos Jansen
Posted on 31 Dec 2013 by

New Year’s Eve Gold Rush At Shanghai Shopping Mall

This email was just sent to me by one of my Chinese friends.

New year’s eve is big sales day in Shanghai. The biggest shopping mall usually sell as much goods on 12/31 as it sells in one month. This shopping mall stocked 200 kilos of gold bars and sold out in 3 hours because of special 15% discount that brings the price closer to cost. After the discount, the price is close to Hong Kong’s. It rations gold sales to 20 grams per person, the queue started at 9pm on 12/30, 10 hours before the mall opened door.

Last year, it stocked 170 kilos of gold bars and sold out in 3 hours too.

I went there around 4pm in the afternoon. Counters at the gold shops are mostly empty.
So I believe if it stocks much more gold, it will be gone too. But I guess the gold shops don’t want to sell too much gold too cheaply.

So let the stupid manipulators bring gold price lower, the Chinese people don’t care about the price, they just want the shiny gold!

Que in front of Chow Tai Fook Jewelry store Shanghai, 31-12-2013
Que in front of Chow Tai Fook Jewelry store Shanghai, 31-12-2013
Que in front of Chow Sang Sang jewelry store Shanghai, 31-21-2013
Que in front of Chow Sang Sang jewelry store Shanghai, 31-21-2013

Update 01-01-2014:

Total sales at the shopping mall were 578 million RMB, a little less than 100 million dollars. 200 kilos of gold bars is already 10% of the total. So 200 kilos of gold bars and gold jewelry and diamond, and luxury watch sales make up a big percentage of total sales. This is just one shopping mall in a city of 30 million people. And Shanghai is just one city in a country of 1.4 billion people.

Additional sources:

In Pudong First Yaohan, after one hour early in the morning 200 kg of gold bars were sold out.

Gold cue Xinmin

Early in the morning January 1, 2013 in Beijing $1.5 million worth of physical gold was sold. 

Beijing gold rush january

My friend 02-01-2013:

Gold rush continued on the 1st day of 2014. 

In beijing, one official outlet of china gold sold 150 kilo of gold bars. The biggest gold jewelry retailer, Caibai, sold 200 million RMB worth of gold jewelry.

Gold rush pictures from across the country is making headlines in Chinese online media.

Beijing gold rush 1

Beijing gold rush 2

Beijing gold rush 3

Koos Jansen
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  • Zhanglan

    I am in Sanya, Hainan Province, where this afternoon bullion bars from 10 – 200 grammes were on sale in a regular retail outlet inside a shopping mall ar CNY 304 / gramme. That is US$1562 / oz – premium of 30%

    This is entirely consistent with the Reuters article cited by Zerohedge last week, noting that people were queuing around the block to buy gold at the bargain price of CNY 289 / gramme.

    Meanwhile, some tool is throwing around clips of 4000 contracts on COMEX driving the price up and down by $30 in under a second, to the point where it just touched 2013 lows below $1180

    I have given up worrying about what is going on, but I am sure it cannot go on forever. The ‘market’ is no longer a Casino – it is a ‘front’ operation

  • Zhanglan

    I am in Sanya, Hainan Province, and this afternoon 99.99% Gold bars from 10 – 200g were on sale at CNY304 per gramme- US$1560 / oz (a premium of 30% over what we are told is the Spot price). This is entirely consistent with the keen demand reported by Zerohedge last week, when ‘bargain-price’ gold was snapped up by Chinese shoppers at CNY 289 per gramme http://www.zerohedge.com/news/2013-12-26/what-chinese-consumers-are-rushing-buy-christmas

    Meanwhile, some clown is dropping clips of 4,000 futures contracts on COMEX driving the price down more than $20 in under a second to a 2013-low below 1180, before spiking back $30 in the opposite direction. This is a blatant attempt to squeeze the market and manipulate the price, and will consequently receive ZERO attention from any regulator. This ‘Market’ has long since ceased to be a price-discovery mechanism or even a Casino, and has now become a ‘Front’ operation for state-sponsored organised crime, in which mainsteam media is apparently complicit

    It is by now surely clear beyond doubt that conventional economic factors such as Supply and Demand have absolutely no influence on the putative ‘price’, which is determined by another agenda altogether; why this should be allowed to go on I have no idea, but I am confident that it cannot go on for ever

    In closing, if anyone has any further information, I would be intrigued to learn more about the armoured bullion trucks allegedly seen moving around the City of London on Boxing Day, as anecdotally referenced in a footnote to a recent King World News interview. Quite frankly, nothing would surprise me – not even a shipment of the Queen’s Crown Jewels from the Tower of London to the local “Cash Converters” shop.

    • In Gold We Trust

      The premium is quite remarkable. Is this premium based on decoration bars or jewelry type items, or is the premium on standard SGE bullion bars?

      • Zhanglan

        I wish I had taken a photo.

        The price was constant irrespective of price, and the bars were decorated to the same extent that an Eagle or a Maple leaf is decorated – it has a design, but is by no means a Commemorative or display item. Note that the Chinese do not gift bullion, but jewellry, and not at this time of year, but next month during Chinese New Year

        Business was as active as could be expected in any shopping mall on the eve of a public holiday – more browsing than frenzied panic buying, but there certainly appeared to be retail interest at these prices. These bars were being offered as investment items, and whilst I appreciate that the same could be said of “collectable” numismatic coins and vanity items, the fact remains that an established jeweller clearly believes there is viable retail demand for these items at these prices

        Some of the apparent premium can be accounted for by Sales Tax – which I am frequently able to arbitrage in small size by buying gold Pandas from e.g. Chards in Blackpool, UK and then selling them over the counter to my pet coin shop in Dongmen, Shenzhen for a 20% markup. However, the simple fact remains that Chinese retail purchasers clearly see value in gold at CNY 300 / gramme, whereas ‘professional’ markets in the West apparently do not

        There is a further anecdotal analogy here, which relates to my own opportunistic purchases of British Sovereigns. In brief, a ‘full’ sovereign coin weighs a tad under 8 grammes and contains 91.65:% Gold (22k). You can buy them over the counter from e.g. City Forex in the City of London, or online from e.g.

        • In Gold We Trust

          Thanks for your comment, next time take pictures! I’ll make a post out of it.

          • Zhanglan

            OK, now back in Zhangmutou – my wife took this shot on her iPhone outside a supermarket this evening; I will try to get something better in the morning: 9999 Gold bars at CNY 299/g from 10 to 1000 grammes, more or less identical to those I saw on sale in Sanya
            There was no frenzy of buying activity, but this was 8pm outside a supermarket in a small town on a Friday night in early January

          • In Gold We Trust

            From what brand are these bars?

          • Zhanglan

            I am having difficulty posting photos online direct from my phone but have emailed these to you together with the business cards and price quotes from the stores involved http://www.lukfook.com and http://www.chowtaifook.com Todays price in both stores is RMB 303 / gramme and I confirm there is no Sales Tax on bars

          • In Gold We Trust

            Nice one. I will add the photos.

          • In Gold We Trust

            The closing price on the SGE friday for 9999 gold was 243.8 RMB. So that’s a 24 % profit. Quite large..

          • In Gold We Trust

            Meanwhile on the streets of Hong Kong 1 gram of fine gold is 277.87 CNY. (live)

          • In Gold We Trust

            More photos from Zhanglan in the mainland:

          • Zhanglan

            I have no doubt; I will be crossing the border to tomorrow, but they quite often check your bags at both Lowu and Lok Ma Chau, and whilst the Hong Kong side don’t care tuppence, the Chinese will only allow you to imprt 200g and to export zero without a licence

          • Zhanglan

            277.87 / 243.80 = 14% premium

            if you have a source for that quote, I will visit them tomorrow, ask questions and take some photos

            caveat below about cross-border restrictions and difference between Renminbi exchange rates in HK and the Mainland (typically not an issue in retail-sized amounts, but if you were trying to run a business based on PM or jewellery, the discrepancy could be significant)

          • In Gold We Trust

            My friend got it from a Chow Tai Fook shop in HK: 353 HKD per gram.

          • In Gold We Trust

            But how can it be that jewelry and bars have the same retail price in the mainland? Bars are exempt from tax, while jewelry are 22 % taxed.

          • Zhanglan

            I only asked the question in the store, and was told that bars are exempt: here is the link to their internet site, where the 5g bars are offered at RMB1515 http://www.ctfeshop.com.cn/s/f168850

            The simple fact is that, tax or no tax, Chinese people are willing to buy at these prices just as surely as UK investors are willing to buy Silver coins with 20% VAT included in the price. Clearly, tax or no tax, it hasn’t put people off buying

            In a twisted kind of way, you cold say that the Western governments intervening to manipulate the Gold price down by e.g. 20% is simply a “tax” in the opposite direction,

          • In Gold We Trust

            I think a few Chinese are a bit stupid to buy bars at Chow Tai Fook, if they are 24 % cheaper at the SGE. Opening an SGE account costs 50 RMB.

  • 24 carat

    Thank you for this valuable information.

    Yes, the electronic goldpricing (up AND down) remains manipulated by the $-moneymasters – merchants of debt.

    That’s their way to make guaranteed speculative profits in repetition. These manipulations happen in the entire financial industry by the leading major forces (movers & shakers – nomenclatura).

    It will end as soon as the financial industry must decouple from the failing system of debt driven economy. As soon as the debt oversaturation cannot be de-saturated anymore.

    When the global economy remains in stagflation modus despite monetary stimùlus. This will not take another decade of muddling through before we find out.

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