Orders For Gold Go Unfilled In Asia

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Considering the rush of gold orders in mid to late April, it is understandable that there would be some temporary delays in delivery. However, we’re now into mid May and sources indicate those same orders are still unfulfilled. So it begs the question: Where’s the gold?

The Shanghai Gold Exchange has an enormous appetite for physical gold, so much so that it’s absorbing all world production month after month — even before the April fire sale. A month’s production averages about 230 tonnes. Gold Miner Pulse, which tracks the numbers from the Shanghai Gold Exchange, reports that during the week of April 22 only one tonne has been delivered to the exchange. Since May 1, it has received only 0.3 tonnes.

The Economic Times of India reports a similar story. Furthermore, many Indian jewelers said compared to last year they expect gold sales will be up 30 % to 50% during the Akshaya Tritiay holiday on May 13 due to the lower price of gold.

Haresh Soni, chairman of the All India Gem and Jewellery Trade Federation, said banks and trading houses importing gold are getting only 10 percent of their orders as the demand has surged sharply after a sudden slide in gold prices last month. ‘If they place order for one tonne, for instance, then they are getting only around 100 kg,’ Soni said. “

Oh, wait. I get it now. You deal with real market demand by declaring a defacto force majeure. Meanwhile, the paper market continues on unimpeded. Could the Comex and LBMA be next for force majeure?

Paul Craig Roberts’ theory is that the raid of the Comex was done in conjunction with the buying of GLD shares in the washout. The banksters get the physical gold by delivering to the GLD 100,000 share lots, which was then supposedly shipped off to Asia, according to Roberts. However, I think the real reason for the raid was to send leased gold back to the Federal Reserve, that in turn must continue to return gold to Germany. I predict additional official sources, such as central banks, also want their gold back — and much quicker than Germany’s seven-year delivery window. What the masters of the universe didn’t predict was the huge demand coming out of China and India. Now, the response is to choke those buyers off from real product.

Good news for silver bulls. Japan will increased silver use for solar by 1.5 million ounces to 5 million ounces [“Dowa Boosts Silver for Japan Post-Quake Solar Demand“]. That’s if it can get delivery.

Visitors, a subscription to WinterActionables.com is only $35 a quarter. If you are exploiting the current once-in-a-generation opportunities in precious metal stocks like I am, less than $12 a month is a bargain to have keen eyes on this sector, which is being absolutely neglected and barely followed. Previous write ups on my investment selections may be found by searching WinterActionables.com. Among my previous posts, you’ll find a few freebies but most require a subscription to access.

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  • A heads up that there is a very active sunspot (1748) that sent off a monster flare Monday and another yesterday, Solar flare risks is rated high right now.

    This site tracks activity:

    Monday’s flare:

    I wrote up a post last January on this topic.

  • Charles Schwab on the “markets”

    Q: How do you feel about the robo-traders who have come to dominate stock trading?
    A: They add nothing to the marketplace. They are scalpers. In times of crisis they suck out liquidity. They would argue they add liquidity. I don’t think so.
    Q: What should be done?
    A: If I was czar, you would have the real marketplace here and let them go there and play in their dark pools like it’s a video game or a lottery. There is no leadership in the SEC to do that. There is no leadership in government to do that. So consequently we have these unbridled frontiers.
    Q: What impact is it having on your customers?
    A: The average customer is not happy about it. It reduces confidence. Even though the market is at new highs, trading (by individual investors) is generally down. If it results in more long-term investing, that might be a good outcome.
    Q: Is the Fed’s zero interest rate policy doing more harm than good?
    A: It’s a disaster. I was in Florida talking to a bunch of retired people. They counted on having their savings accounts and CDs supplement their Social Security.
    Q: The Fed’s policy is hurting parts of your business, but to the extent it’s raising stock prices, is that helping?
    A: We have benefited from higher stock market prices and higher management fees.
    Q: So on balance has it helped or hurt more?
    A: We are more hurt by the manipulation of what’s going on at the Fed. There’s manipulation in oil prices, in milk prices, in monetary prices. We are highly dependent on the free-market system. But we are getting into a funny situation by having every little thing manipulated by government. Eventually it becomes something closer to socialism.

    Read more: http://www.ctpost.com/news/article/Schwab-reflects-on-firm-s-history-4512699.php#ixzz2TMipHpEm

  • George Cole

    It seems that something is always happening to knock down gold prices. The latest culprit may be the stromg dollar.