Gold Demand Explodes Higher as China Announces Decline in Gold Production

Gold Demand Explodes Higher as China Announces Decline in Gold Production by Rory – The Daily Coin

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 knowledge surrounding 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 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 is a massive jump, and this gold consumption is on top of the “official” gold consumption by the state. It is offset by the massive decline in sales of American Gold Eagles and Gold Buffalos by the U.S. Mint. If we just look at the 7.44% increase gold jewelry, which would be considered retail gold, we see that retail gold can have a dramatic impact on the overall demand for physical gold. 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 upwards of a 29% swing in gold consumption. (Let that sink in for just a minute.) 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 review all the news articles singing the praises of physical gold that have been published over the past several months are we 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 annual average high 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 production falls off, globally, even by a small percentage and continues to fall, achieving $1,670 annual average high, in my opinion, is within the realm of reality. Maintaining that annual average high, or moving higher, is also within the realm of reality.

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The Daily Coin

Rory Hall, The Daily Coin. Beginning in 1987 Rory has written over 1,000 articles and produced more than 300 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Silver Doctors, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. 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. Don't forget to visit The Daily Coin and Shadow of Truth YouTube channels to enjoy original videos and some of the best economic, precious metals, geopolitical and preparedness news from around the world.