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Gold Demand Explodes Higher as China Announces Decline in Gold Production - Rory Hall (2/11/2017)

Gold Demand Explodes Higher as China Announces Decline in Gold Production - Rory Hall (2/11/2017)
By Rory Hall 9 months ago 13325 Views No comments

November 2, 2017

It’s funny that you can’t hardly give away gold or silver in the U.S. or Europe – you know, the nations that are completely broke and need to preserve their wealth, while at the exact same time the people that are moving up the wealth ladder, China, Russia and India, are all acquiring gold and silver by the handful. What does that tell you about wealth preservation?

We, in the West, get articles from the mainstream media telling us to stay away from gold or “invest” in gold through paper vehicles ETF’s. While the government of China, those communist scum, encourage their citizens to possess physical gold and silver. Not only do these “devil dogs” encourage their citizens to hold physical gold and silver they make it incredibly easy by having both physical gold and silver available in every state operated bank – which means 100% of all banks.

The appetite, in China, for physical gold continues to grow.

China seems to have recovered its appetite for gold, with demand for bars and jewellery markedly increasing in the first nine months of the year, data from the China Gold Association shows.

Total gold consumption, including jewellery and bullions but excluding the central bank’s purchases, went up 16% to 815.9 tonnes in the period, the association reported Wednesday according to Xinhua news agency. That’s a positive turnaround from the same period last year, when demand dropped by almost 13%.

Demand for gold bars jumped 44.5% to 222 tonnes amid rising global demand for safe haven investments. Jewellery consumption, in turn, rose 7.44% to 503.87 tonnes. Source

44.5% increase in gold bars in a massive jump. It is offset by the massive decline in American Gold Eagles and Gold Buffalos. If we just look at the 7.44% increase gold jewelry, which would be considered retail gold, we see no change in the metrics concerning gold in the East and gold in the West. The Chinese are acquiring vast amounts of physical gold while the U.S. and EU are probably “investing” in the latest illusion of wealth, cryptocurrencies. Some people just won’t ever learn, while others learn at breakneck speed and put their knowledge to work.

This massive increase in physical gold demand is in light of China announcing a 10% decrease in gold mine production! If we compare the first nine months of 2016 to 2017 same period, we find a 29% swing in gold consumption. If you overlay that increase on top of the decrease in mine production we should be seeing golds value moving to much, much higher ground over the next few months.

If we go back to all the gold articles that have been published over the past several months we are now seeing the reason for all the “happy gold news”. China is the worlds largest producer of gold and she just announced a 10% drop in production. That means approximately 45 fewer tons of physical gold will be coming to market. Not that big a deal, unless it continues and we begin to see other mining nations output drop as well. It will be interesting to read what South Africa, Russia, Canada, America and other African nations report for 2017. Is this the fuel for what Jeffrey Christian stated about gold rising above $1,670 by 2020? As pure speculation I would say yes. Remember, if gold is going to be higher than $1,670 in 2020, and gold is currently sitting at $1,279 that means approximately a $13-$14/average rise in gold every month for the next 2.5 years. If mining productions fall off, globally, by 10+% this, in my opinion, is within the realm of reality.


Rory Hall, Editor-in-Chief of The Daily Coin, has written over 700 articles and produced more than 200 videos about the precious metals market, economic and monetary policies as well as geopolitical events since 1987. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver and Silver Doctors, SGTReport, just to name a few. Rory has contributed daily to SGTReport since 2012. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Gerald Celente and Peter Schiff, to name but a few. Visit The Daily Coin website and The Daily Coin YouTube channels to enjoy original and some of the best economic, precious metals, geopolitical and preparedness news from around the world.


The author is not affiliated with, endorsed or sponsored by Sprott Money Ltd. The views and opinions expressed in this material are those of the author or guest speaker, are subject to change and may not necessarily reflect the opinions of Sprott Money Ltd. Sprott Money does not guarantee the accuracy, completeness, timeliness and reliability of the information or any results from its use.

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