Monthly Imports of Gold From Hong Kong To China Soar On Strong Demand

"Gold shipments to China from Hong Kong increased in July as importers took advantage of local prices that were an average 2.1 percent higher than global markets and as mainland investors bought jewelry and coins.

Net imports, after deducting flows from China into Hong Kong, were 113 metric tons, from 101 tons a month earlier, according to calculations by Bloomberg. Mainland buyers purchased 129 tons in July, including scrap, compared with 113 tons in June, data from the Hong Kong government showed today."

Bloomberg, Gold Imports to China From Hong Kong Climb on Physical Demand

Physical gold is flowing from west to east, and much of it is now passing through Hong Kong to China.  It is going into many strong hands, and may not readily return except at much higher prices.

Price manipulation over long periods of time can create structural supply deficiencies and chronic shortages.  This seems to be the case in both gold and silver.

Weighed, and found wanting.

Stand and deliver.

Gold Daily and Silver Weekly Charts - Metals Hit Ahead of Non-Farm Payrolls Report

For regular patrons of le café a bear raid on the metals in conjunction with a Non-Farm Payrolls report is a familiar tradition.

I have to admit I did not suspect it would gain even this much traction given the thin level of deliverable of inventory and, more importantly, the war jitters in the Mideast.

But neither war, nor widespread economic damage, nor privation inflicted on commodity countries will keep these jokers from their appointed rounds.

See you tomorrow.

SP 500 and NDX Futures Daily Charts

Stocks started out a bit optimistically on economic data, but faded into the day a bit ahead of the Non-Farm Payrolls report tomorrow and the discussions on Syria.

NAV Premiums of Certain Precious Metal Trusts and Funds - Claims Per Ounce of Gold at 55

A follow on bear raid designed to test the will to hold the futures contracts, in which open interest in gold is high against deliverables. Silver has a low open interest relatively speaking.

The only thing this does is to increase the offtake of physical bullion around the world by distorting prices, increasing demand while decreasing longer term supply.

At these prices, claims per deliverable ounce of silver are 13 and for gold they are up to 55.  It would be hard to hold off a run on the metals at these levels without sharply higher prices.

But why have a care? Wall St. is not noted for long term thinking.