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

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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.

Don’t miss a golden opportunity.

Now that you’ve gained a deeper understanding about gold, it’s time to browse our selection of gold bars, coins, or exclusive Sprott Gold wafers.

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