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.
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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.
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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
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