Dutch bring 120 tonnes of gold back to Amsterdam from New York
Read more at DutchNews.nl: Dutch bring 120 tonnes of gold back to Amsterdam from New York http://www.dutchnews.nl/news/archives/2014/11/dutch-bring-120-tonnes-of-gold-back-to-amsterdam-from-new-york.php/
Switzerland Net Exports 100t Of Gold In October
From looking at rising SGE withdrawals and Indian import in recent months, we knew demand was increasing consistently and huge amounts of physical gold had to be supplied from somewhere. As I’ve written in a previous post, this type of gold demand can’t be met by just mine supply and so the metal has to be sourced from countries that have large stockpiles, the usual suspects: the UK, Hong Kong and Switzerland.
In 2013 the UK was severely drained (net 1424 tonnes), last week we learned Hong Kong became a net exporter since August 2014, the latest trade data from Switzerland shows the Swiss net exported 100 tonnes of fine gold in October. 75 tonnes net to India and 45 tonnes net to China.
Russia Grabs Another 18.7 Tonnes Of Gold In October From The Market
While the mainstream media is focused on the physical gold outflows from the GLD ETF, the alternative media keep on focusing on the gold reserves in China, Russia, India, Turkey.
We definitely believe that, without participation by Western investors, there is no big chance to see higher gold prices any time soon. On the other hand, the evolution in the physical market as a consequence of the insatiable gold demand in the East will have most likely effects longer term. Although we have written about it extensively, this point was nicely summarized very recently in our piece “How Eastern Gold Demand Is Transforming The Gold Market“:
The Asians Are Picking Up The Gold Sold By ETF’s
Sprout Money: As could be expected, the decreasing has caused people to run away from gold investments and not only did the gold miners drop faster than expected, any decrease in the gold price usually also caused people to liquidate their holdings in the Exchange Traded Funds which are trying to provide an easy and liquid possibility for ‘the common man’ to invest in gold.
And indeed, the SPDR Gold Trust ETF (GLD) saw an outflow of almost 29 tonnes of gold (roughly 925,000 ounces) during the month of October. As of at the end of last month, the ETF only held 741 tonnes of gold (a little bit less than 24 million ounces) which is the lowest point in six years time. So even though the net long position in the gold futures is still positive, it looks like the smaller have spit out gold as an investment, and that’s exactly something we like to see when we are waiting for the ‘total capitulation’ phase.
Ambiguity over Indian import policy spurs gold hoarding
The importers and big bullion traders in India are reported to be holding on to their gold stocks in anticipation of higher premiums on account of rumors that the government may introduce fresh curbs on gold imports. The All India Gems and Jewelry Trade Federation (GJF) alleged that the uncertainty over gold import policy has led to gold hoarding in the country.
The media in the country have been talking about the government’s intention to curb gold imports into the country to bring CAD under control. Of late, there were rumors that the policy is made already and it just needs to be announced.