Last week Swiss Shock has UnPegged the gold market and Gold is in a breakout now. China shows no slowdown in its accumulation of Gold. What Chinese know the others don't? Please visit Koos Jansen at GoldBullion for more insights on the Chinese Gold market. The real turnaround in Gold sentiment will come after $1,350 level, it could happen fast now. All eyes will be on the ECB next week. These level of beaten into the dust junior miners will not be forever: HUI has cleared 200 level and has a very strong breakout pattern now.
Time is to dust off our project in Alaska, Gold above $1,300 will bring the market back into the beaten in to the dust junior miners.
"We are working on the corporate structure now, which will allow to develop Shotgun Gold with the potential new strategic partner on J/V basis like we are doing with Ganfeng Lithium in International Lithium. You can find more information in the Shotgun Gold Project presentation below, on our website and give us a call to discuss it at any time."
TNR Gold Shotgun: NOVAGOLD Reports Major Progress in Advancing Donlin Gold up the Value Chain.
Peter Schiff: Will China Pull a "Switzerland" on the U.S. Dollar?
Gold Surges More Than 2% On Unexpected Swiss Bank Capitulation On Euro Cap.
Gary Wagner: Did The Swiss Turn The Tide For Gold?
Koos Jansen:
GoldBullion.
Chinese Lunar Year Gold Buying At Full Steam: 61t Withdrawn From SGE Vaults In 1 Week
As I mentioned last week, January is the time of the year for the Chinese to buy golden gifts for their love ones. And that is exactly what they are currently doing en masse, according to the latest data from the Shanghai Gold Exchange (SGE).
An astonishing 61 tonnes have been withdrawn from the vaults in SGE trading week 1 (January 5 -9), the strongest week since early October 2014. SGEI volume was very little at 3.5 tonnes; meaning withdrawals from vaults in the mainland must have been at least 58 tonnes. (Read this post for a comprehensive explanation of the relationship between SGEI trading volume and withdrawals.)
As most of Chinese gold demand needs to be sourced from abroad (import), this is draining global gold inventory. One of the largest suppliers to this market is the UK, home of the London Bullion Market. It remains to be seen how long the UK can export to China – the question is will all gold from London be shipped to the Orient, or will it stop before they’re empty. From the LBMA website, January 2015:
There are seven custodians offering vaulting services in the London bullion market, three of whom are also clearing members of the LBMA (Barclays, HSBC and JP Morgan). There are also four other security carriers, who are also LBMA members (Brinks, G4S Cash Solutions (UK), Malca Amit and ViaMat). The Bank of England also offers a custodian service (gold only). In total it is estimated that there are approximately 7,500 tonnes of gold held in London vaults, of which about three quarters is stored in the Bank of England.
In July 2014, the LBMA mentioned:
In total there is approximately 9,000 tonnes of gold held in London vaults, of which about two thirds is stored in the Bank of England.
This is not an exact scientific way of measuring changes in London’s gold stock over a given period, but it is significant.According the Eurostat the UK has net exported 1,871 tonnes from January 1, 2013, until November 31, 2014. Let’s see how this will play out this year.
(h/t @ronanmanly for LBMA data)
Koos Jansen
E-mail Koos Jansen on: koos.jansen@bullionstar.com"
E-mail Koos Jansen on: koos.jansen@bullionstar.com"
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