We have a nice rally in Gold today after Gold miners have paved the way by reversing last couple of days. Nobody believes this rally, so we have the very good set up for the real bottom now. Needless to say that gold miners are in a total capitulation and have reached the record oversold levels even below 2008 panic!
Nobody knows the future, but Koos Jansen will be the very good guide into the China's appetite for Gold and Charles Nenner has made quite a bold call on Gold to bottom now. Any pause in US Dollar growing up into the sky will be welcomed by gold and reignited by the short covering now.
Swiss Gold Referendum remains the wild card with potential 1,500 t of Gold to be bought by SNB in case of Yes Vote.
Charles Nenner: Gold Cycle To Bottom, Sees $2,100 Upside Target.
Charles Nenner has quite a few very impressive calls on different markets. His today calls sound totally contrarian for the mainstream investors. US Dollar is rising to the sky, markets are hitting all-time-highs. Lets put him on the record here today. In this interview he confirms his call for Gold cycle to bottom now and his upside target of $2,100. Chinese seems to be following his ideas ...
The day will come when even God forgotten juniors will get the bid based on the real assets they hold.
Presentation: TNR Gold Receives Royalty From McEwen Mining On "One Of The Largest Undeveloped Copper Projects".
Koos Jansen:
When China Will Utilize Its Gold The Price Will Rise
On October 27 I was interviewed by German financial TV network DAF, about the Chinese gold market. After it was broadcasted on October 30, the host, Markus Bußler, told me it was the most viewed video on the DAF website that day. I hope the message is spreading. It was only 10 minutes so I couldn’t go in-depth, but was happy to share a few key points.
- Chinese consumer gold demand in 2013 was 2,200 tonnes, not 1,100 tonnes as the Wold Gold Council states.
- Only for consumer demand China net imported 1,500 tonnes in 2013.
- The best way to measure Chinese wholesale demand is by withdrawals from the Shanghai Gold Exchange vaults (SGE) – although this might change in the future.
- The PBOC does not purchase gold through the SGE.
- The PBOC is definitely increasing its official gold reserves.
- China is the most important player in the gold market, they are the second largest economy in the world and accumulate gold for it’s monetary value and in anticipation of a new monetary system.
- China still has a lot to work to do regarding the internationalization of the renminbi, developing their financial markets and diversify their FX reserves. In this sense China has no rush, it wants a gradual shift away from the US dollar.
- When China will fully utilize the gold it is accumulating, I expect the price to rise.
Make sure the captions are on for the first 30 seconds in which I’m introduced in German. From 0:30 the interview is in English.
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