Monday, August 19, 2019

Gold Investment “Compelling” As Fed May “Kill The Business Cycle”

by Mark O’Byrne, GoldCore:

Gold Investment “Compelling” As Fed Likely To Create Next Recession

– Is the Fed about to kill the business cycle?
– 16 out of 19 rate-hike cycles in past 100 years ended in recession
– Total global debt at all time high – see chart
– Global debt is 327{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of world GDP – ticking timebomb…
– Gold has beaten the market (S&P 500) so far this century
– Safe haven demand to increase on debt and equity risk
– Gold looks very cheap compared to overbought markets
– Important to diversify into safe haven gold now

 

by Frank Holmes via Gold.org

Global debt levels have reached unprecedented levels, pension deficits are rising and the US interest rate cycle is on the turn. Frank Holmes, chief executive of highly regarded investment management group US Global Investors, believes that investing in gold is a logical response to current, unnerving conditions.

For centuries, investors and savers have depended on gold in times of economic and political strife, and its investment case right now is as compelling as it’s ever been.

Read More @ goldcore.com

Keiser Report: Capitulation on Bad Bets against China (E1126)

from RT:

In the second half, Max continues his interview with Jim Rickards, author of Currency Wars. They discuss central bank policy, currency wars and hot wars.

Gold backed cryptocurrency ICO begins today as GoldMint model to create new digital gold market

by Kenneth Schortgen, The Daily Economist:

There are many different gold ‘markets’ for savers and investors to participate in, but only a few provide both security or delivery in real physical gold.

In the West the LBMA, Comex, and equity based GLD ETF’s focus on paper ownership of gold, where investors who want to own the precious metal but don’t want to deal with storing it put their trust in brokers and associations that have a long history of fraud and manipulation.  While over in the East, the Shanghai Gold Exchange functions as a true physical gold market.  But unless one chooses to store their gold in an offshore vault, taking physical ownership is once again a difficult proposition.

This leaves savers with a couple of different options to either store or back their wealth in gold while still having the ability to access their money in real time.

One of these platforms comes in the form of a company called Gold Money which allows businesses, savers, and investors to transfer their sovereign currencies into an account that is completely backed by gold, and yet still have access to that money in the form of a debit card or wire transfer mechanisms.

The next one is company called Goldmint, which is a cryptocurrency based platform using the Blockchain.  And on Sept. 20 this enterprise is officially starting its Initial Coin Offering (ICO) where one can purchase tokens that are backed by physical gold.

Today, on the 20th of September, GoldMint is launching its ICO. The GoldMint ICO will mark the birth of a new means of exchange for physical gold, with transactions leveraged over the blockchain based platform. This platform will utilize the private and individual gold trading market and potentially the management of larger physical stocks such as those in central banks. It will also provide an electronic payment solution backed by physical gold and a system for gold-backed peer-to-peer lending. 

GoldMint is celebrating the beginning of its ICO by attending 3 major events on the same day the crowdsale kicks off.  One of these events is BlockchainLive in London– Europe’s leading Blockchain conference bringing together over 75+ global experts in various fields. 

Another one is Moscow’s ICO Event which this time mainly focuses on how legislation will impact the cryptocurrency space. 

Today GoldMint is also present at the Global Blockchain Summit in Hong Kong gathering iconic speakers from various industries to discuss about the real-world applications of blockchain technology, as well as its potential benefits, risks, and regulatory concerns. – Coin Speaker

As the world begins to de-dollarize, and China gets ready to implement a new oil contract convertible to gold, it appears more and more that gold will see a return to the monetary system in some form of fashion.  And when you add in the rise of the blockchain and cryptocurrenies to the mix, melding gold and cryptos is the most economical way to get the best of both worlds and be able to move onto the cutting edge of what is very likely to become the future financial system.

Read More @ DailyEconomist.com

Andrew Hoffman – Crypto Gold Central Taking Off

by Kerry Lutz, Financial Survival Network:

Andrew Hoffman reports that after being in business for 8 days, things are going great. Check out his special 7 day free trial at CryptoGoldCentral.com. Gold’s fundamentals keep getting stronger. Gold’s still at $1310. We talked about China’s efforts to contain Bitcoin and the Crypto-Currencies. Today’s historic Fed meeting. Claims that they’re going to reduce their balance sheet are nonsense. It can’t be done. We’re never going above 2.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} rates, proof is today we’re at 2.2{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}. We’re missing two interest rate hikes promised for this year. Just wait till the King of Debt Donald Trump really kicks into high gear.

click HERE to listen

Read More @ FinancialSurvivalNetwork.com

Wealth In Gold Motivation

0

from Junius Maltby:

BREAKING: U.S. Senators Introduce Bill In DIRECT ATTACK ON U.S. GOLD & SILVER MINING

from SilverDoctors:

If the federal government gets its massive piece of the action with the “Hard Rock Act”, the entire U.S. gold and silver mining industry could go the way of U.S. coal mining. Also, production costs could surge at the same time profits could collapse from government theft regulation…

Physical gold and silver in one’s own possession is the ultimate hedge against uncertainty.

The Federal Government’s Own Report Acknowledges the EPA Was Responsible for the Disaster Mentioned in This Bill:

On the morning of August 5, 2015, mine reclamation activities led by the U.S. Environmental Protection Agency (EPA) onsite project team triggered an uncontrolled rapid release of approximately 3 million gallons of acid mine water from the Gold King Mine located about 5 miles north of Silverton, Colorado. Commonly referred to as a “mine blowout,” the outflow carried with it ironoxyhydroxide sediments that had deposited inside the mine workings. The ironoxyhydroxide absorbed heavy metals when it formed in the mine, and when released it changed the acid water to a vivid orange-brown color. The blowout eroded soil and rock debris from the mine portal, eroded pyritic rock and soil from the adjoining waste-rock dump, and eroded road-embankment fill from several downstream unpaved road stream crossings. Most of the eroded rock, gravel, and sand were deposited in Cement Creek.

Straight from one of the senators who introduced the bill himself [Editor’s Note: bold emphasis ours]:

Senators Introduce Bill to Reform Antiquated Hardrock Mining Laws

Hardrock Mining and Reclamation Act will ensure mining companies pay their fair share and prevent future disasters like Gold King Mine blowout

WASHINGTON — Today, U.S. Senators Tom Udall (D-N.M.), Martin Heinrich (D-N.M.), Michael Bennet (D-Colo.), Ron Wyden (D-Ore.) and Edward J. Markey (D-Mass.) introduced the Hardrock Mining and Reclamation Act of 2017, legislation to modernize the nation’s antiquated hardrock mining laws. The bill requires companies to pay royalties for the first time for the ability to extract mineral resources like gold, silver, and copperfrom public lands, helps ensure that taxpayers aren’t on the hook for cleaning up abandoned mines, and seeks to prevent another toxic spill like the Gold King Mine disaster of 2015. The Gold King Mine blowout spilled 3 million gallons of toxic wastewater into the Animas and San Juan rivers, and communities in New Mexico and Colorado are still waiting for compensation for the damage to their businesses and farms.

“It’s time to end the antiquated sweetheart deal that hardrock mining companies have enjoyed for nearly 150 years,” said Udall, who has fought for mining reform continuously since he was first elected to the U.S. House of Representatives in 1998. “Like oil, gas, and coal producers, mining companies need to pay their fair share, but because our mining laws date back to the Gold Rush era, it’s the taxpayers who are on the hook for cleaning up hundreds of thousands of abandoned mines that are poisoning our watersheds and threatening our communities. The Gold King Mine disaster – and the harm it has caused to Navajo Nation and New Mexico communities – show why we need to bring our laws into the 21st century. We no longer travel West by covered wagon and oxen, and our mining laws should no longer favor Manifest Destiny and the domination of the continent. This legislation will help communities across the West clean up these dangerous abandoned mines, and ensure that taxpayers are getting their fare share of the profit from resources mined on public lands.”

“Toxins leaking out of thousands of abandoned hardrock mines threaten public health and damage our watersheds every day,” said Heinrich. “In the Southwest, water is our most precious resource and we cannot continue to do nothing while toxic metals are drained into our rivers and drinking water supplies. We cannot wait to take action until another Gold King Mine disaster strikes again. It is time that Congress overhaul our outdated and ineffective federal hardrock mining policy so taxpayers aren’t the ones on the hook when something goes wrong. We must come together and pass these pragmatic reforms to stop future disasters, and protect the health of our communities, our land, and our water.

“The Gold King spill continues to be a reminder of the threat that abandoned mines pose,” said Bennet. “Hardrock mining is a part of our heritage in Colorado, but it is long past time to reform our antiquated mining laws. This bill would provide the resources necessary to help clean up the thousands of abandoned mines in Colorado, improve water quality, and prevent a future disaster for downstream communities.”

Private companies that profit from mining on public lands ought to pay for using those lands and for cleaning up the messes they’ve created,” said Wyden. “This common-sense legislation would update a century-old law to make sure hardrock mining companies no longer get a free ride when it comes to cleaning up abandoned mines, which threaten public safety and the environment.”

“Huge multinational mining companies can extract gold, silver and other valuable hardrock minerals right now that belong to American taxpayers without paying a dime under a mining law passed after the Civil War,” said Markey. “The mining law of 1872 isn’t just outdated, it’s outrageous. We need to ensure that these large mining companies pay their fair share to mine on public lands so that we have the revenue to protect public health and the environment by cleaning up the hundreds of thousands of dangerous, toxic abandoned mines in Western states.

STOP, STOP, STOP: BS FLAG IS NOW THROWN:

Seems odd. The senator from Oregon must not have read the official investigation report on the disaster, or he would have known the spill was caused by the EPA itself.

Also, the History Channel tells us that the “Gold Rush” peaked in 1852 (decades before 1872):

A total of $2 billion worth of precious metal was extracted from the area during the Gold Rush, which peaked in 1852.

How does the west have “hundreds of thousands of abandoned mines” like the senator claims? How many people does it take to work in hundreds of thousands of gold and silver mines?

Read More @ SilverDoctors.com

BANKERS SET UP ANOTHER GOLD AND SILVER RAID ON THE CLOWNS FOMC BALANCE RUNOF

by Harvey Organ, Harvey Organ Blog:

YIELD CURVE FLATTENS WITH THE FOMC ANNOUNCEMENT INDICATING FED FAILING POLICY/DEVASTATION IN BOTH MEXICO AND PUERTO RICO/SPANISH OFFICIALS ARREST CATALAN OFFICIALS AHEAD OF THE INDEPENDENCE VOTE/VENEZUELA IN TECHNICAL DEFAULT AS IT MISSES SEPT 15 PAYMENT: THEY NOW HAVE 30 DAYS GRACE PERIOD/ANOTHER PRIVATE RUSSIAN BANK FAILS DUE TO BANK RUN AND THE BANK OF RUSSIA BAILS OUT THE BANK

GOLD: $1312.75 UP   $5.25

Silver: $17.29  UP 5 CENT(S)

Closing access prices:

Gold $1300.00

silver: $17.15

SHANGHAI GOLD FIX:  FIRST FIX  10 15 PM EST  (2:15 SHANGHAI LOCAL TIME)

SECOND FIX:  2:15 AM EST  (6:15 SHANGHAI LOCAL TIME)

SHANGHAI FIRST GOLD FIX: $1316.24 DOLLARS PER OZ

NY PRICE OF GOLD AT EXACT SAME TIME:  $1312.70

PREMIUM FIRST FIX:  $3.54

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SECOND SHANGHAI GOLD FIX: $1318.43

NY GOLD PRICE AT THE EXACT SAME TIME: $1313.85

Premium of Shanghai 2nd fix/NY:$4.58

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LONDON FIRST GOLD FIX:  5:30 am est  $1314.90

NY PRICING AT THE EXACT SAME TIME: $1315.20

LONDON SECOND GOLD FIX  10 AM: $1311.30

NY PRICING AT THE EXACT SAME TIME. 1311.80

For comex gold:

SEPTEMBER/

NOTICES FILINGS TODAY FOR SEPT CONTRACT MONTH: 0 NOTICE(S) FOR  nil  OZ.

TOTAL NOTICES SO FAR: 54 FOR 5400 OZ  (0.1679 TONNES)

For silver:

SEPTEMBER

 

 71 NOTICES FILED TODAY FOR

 

355,000  OZ/

Total number of notices filed so far this month: 5,881 for 29,405,000 oz

XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX

 

end

Another planned raid by the crooks to coincide with the release of the FOMC balance sheet run off. The Fed did not anticipate that the yield curve would flatten:  the banks wanted the yield curve to rise as we go out in time: the opposite happened.  Generally this is very bad for banks as they need to borrow short term low and lend long time.  Today the two and five yr yields rose but the 10 yr and especially the 30 yr fell in yield. The press are stating that the Fed has made a policy error.

Let us have a look at the data for today

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In silver, the total open interest FELL SLIGHTLY BY 465 contracts from  193,459 DOWN TO 192,994 WITH THE SMALL RISE IN PRICE THAT SILVER UNDERTOOK IN YESTERDAY’S TRADING (UP 10 CENTS ). FINALLY YESTERDAY WE SAW THE CONSTANT TORMENT SUBSIDE AS SILVER EKED OUT A SMALL GAIN. LONGS REMAIN RESOLUTE NOT TO PART WITH ANY THEIR SILVER LEAVES FROM THE SILVER TREE. OUR BANKER FRIENDS COULD NOT COVER ANY OF THEIR SILVER SHORTS. 

RESULT: A SMALL FALL IN OI COMEX  DESPITE THE 10 CENT PRICE RISE. BANKERS FAILED IN THEIR ATTEMPT TO CAUSE SILVER LEAVES (oi) TO FALL.

 In ounces, the OI is still represented by just UNDER 1 BILLION oz i.e.  0.9660 BILLION TO BE EXACT or 138{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} of annual global silver production (ex Russia & ex China).

FOR THE NEW FRONT MAY MONTH/ THEY FILED: 71 NOTICE(S) FOR 355,000OZ OF SILVER

In gold, the open interest FELL BY A TINY 915 CONTRACTS DESPITE THE TINY RISE  in price of gold ($0.15 GAIN WITH YESTERDAY’S TRADING).  The new OI for the gold complex rests at 570,096. AFTER 7 CONSECUTIVE TRADING DAYS WE HAD A REPRIEVE FROM CONSTANT TORMENT. OUR BANKER FRIENDS DECIDED TO LET GOLD/SILVER RISE AND THEN WAIT FOR ANOTHER ATTACK LIKE THIS AFTERNOON’S  FOMC BALANCE SHEET RUNOFF 

Result: A SMALL DECREASE IN OI WITH THE  TINY RISE IN PRICE IN GOLD ($0.15). BANKERS RETREAT TO HIGHER GROUND LETTING GOLD/SILVER RISE.  THEY WERE WAITING IN THE WINGS TO ATTACK ON THE FOMC BALANCE SHEET RUN OFF. 

we had: 0 notice(s) filed upon for nil oz of gold.

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With respect to our two criminal funds, the GLD and the SLV:

GLD:

Tonight , we had no change in gold inventory:

 

Inventory rests tonight: 846.03 tonnes

 

SLV

Today: no changes in inventory.

INVENTORY RESTS AT 324.915 MILLION OZ

 

end

.

First, here is an outline of what will be discussed tonight:

1. Today, we had the open interest in silver FELL BY A TINY 465 contracts from 193,459  DOWN TO 192,994 (AND now A LITTLE FURTHER FROM THE NEW COMEX RECORD SET ON FRIDAY/APRIL 21/2017 AT 234,787) DESPITE YESTERDAY’S 10 CENT GAIN IN TRADING.AFTER 7 CONSECUTIVE TRADING DAYS OF TORMENT, OUR BANKERS REMOVED THEIR FOOT FROM THE THROAT OF BOTH GOLD AND SILVER. THEY ARE LETTING OUR PRECIOUS METALS SEEK HIGHER GROUND BEFORE THEY ATTACK AGAIN.  THEY DID NOT WAIT LONG: THEY ATTACKED ON RELEASE OF FOMC BALANCE SHEET REDUCTION.

 

RESULT:  A TINY FALL IN OI  AT THE COMEX  DESPITE THE GAIN IN PRICE OF 10 CENTS IN YESTERDAY’S TRADING. BANKERS RETREAT FOR HIGHER GROUND WAITING IN THE WINGS TO ATTACK TO FOMC ANNOUNCEMENT.

(report Harvey)

.

2.a) The Shanghai and London gold fix report

(Harvey)

 

2 b) Gold/silver trading overnight Europe, Goldcore

(Mark O’Byrne/zerohedge

and in NY:  Bloomberg

3. ASIAN AFFAIRS

i)Late TUESDAY night/WEDNESDAY morning: Shanghai closed UP 9.15 POINTS OR 0.27{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}   / /Hang Sang CLOSED UP 76.39 POINTS OR 0.27{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/ The Nikkei closed UP 11.08 POINTS OR 0.05{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Australia’s all ordinaires CLOSED DOWN 0.05{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}/Chinese yuan (ONSHORE) closed WELL UP at 6.5750/Oil UP to 50.08 dollars per barrel for WTI and 55.77 for Brent. Stocks in Europe OPENED MIXED LEANING TO RED . Offshore yuan trades  6.5755 yuan to the dollar vs 6.5750 for onshore yuan. NOW THE OFFSHORE MOVED A LITTLE WEAKER  TO THE ONSHORE YUAN/ ONSHORE YUAN MUCH STRONGER (TO THE DOLLAR)  AND THE OFFSHORE YUAN IS A MUCH STRONGER TO THE DOLLAR AND THIS IS COUPLED WITH THE WEAKER DOLLAR. CHINA IS  HAPPY TODAY

Read More @ HarveyOrganBlog.com

‘Secret Monetary Policy’: Who Manipulates Gold Prices and Why

from Sputnik News:

While major international events, like nuclear tests carried out by North Korea, affect gold prices and result in a situation when investors prefer to invest their money in the noble metal, economic expert Dimitri Speck believes that there are other, more important factors that play a crucial role in influencing the global financial market.

Gold prices have been subject to constant manipulations since 1993, German expert on the gold market Dimitri Speck told Sputnik Germany.

According to him, the manipulation of gold prices has been presented by the media as if it has been initiated by a couple of malicious traders just recently, but this idea is wrong.

“When the gold price manipulation started on August 5, 1993, these were central banks that initiated the process, and namely the then head of the US Central Bank Alan Greenspan. He did not want to let the gold price rise over $400,” Speck said, adding that Greenspan feared that a significant increase in gold prices might affect the “inflation thermometer.”

The expert noted that the US Fed had arranged an agreement among the central banks to keep the gold price below $400 dollars. This was done for several years by means of sales and loans.

Drivers of Gold Price Manipulation

Central banks, which often belong to the state, do not act alone, but work closely with private banking and financial institutions, Speck continued.

“With the help of price shocks, they [the institutions] shortly knock the prices down to drive other buyers out of the market. The state is the first to get benefit from all this, and this primarily concerns the United States. Well, and the dollar. These are the main beneficiaries of the gold price manipulation. Because the US dollar, as the main world currency, looks good in this case,” the analyst noted.

Explaining how the manipulation process actually takes place, Speck noted that this happens “very simply,” namely by “damaging other competitors.” 
In this case, gold is the main rival to currencies based on loans, such as the US dollar and the euro.

Read More @ SputnikNews.com

LBMA pledges ‘transparency,’ so where are the gold swaps and leases?

by Chris Powell, GoldSeek:

Dear Friend of GATA and Gold:

Writing in the September issue of the World Gold Council’s Gold Investor newsletter, London Bullion Market Association Chief Executive Ruth Crowell writes that the organization is committed to delivering transparency and so its members will disclose their transactions with governments, central banks, and the Bank for International Settlements, including gold swaps, leases, and gold-related derivatives.

Crowell’s essay is headlined “LBMA — Delivering Transparency and Integrity” and is posted at the World Gold Council’s internet site here —

https://www.gold.org/research/gold-investor/gold-investor-september-2017…

— and if you believe this preface or anything the LBMA says about “transparency and integrity,” you shouldn’t have anything to do with gold, which remains, with the LBMA’s help, the secret knowledge of the financial universe.

Read More @ goldseek.com

“This Is Where The Next Financial Crisis Will Come From” – Deutsche Bank

0

by Mark O’Byrne, GoldCore:

In an extensive, must-read report published on Monday by Deutsche Bank’s Jim Reid, the credit strategist unveiled an extensive analysis of the “Next Financial Crisis”, and specifically what may cause it, when it may happen, and how the world could respond assuming it still has means to counteract the next economic and financial crash.

In our first take on the report yesterday, we showed one key aspect of the “crash” calculus: between bonds and stocks, global asset prices are the most elevated they have ever been.

With that baseline in mind, what happens next should be obvious: unless one assumes that the laws of economics and finance are irreparably broken, a deep recession and a market crash are inevitable, especially after the third biggest and second longest central bank-sponsored bull market in history.

But what will cause it, and when will it happen?

Needless to say, these are the questions that everyone in capital markets today wants answered. And while nobody can claim to know the right answer, here are some excerpts from what DB’s Jim Reid, one of the best strategists on Wall Street, thinks will take place.

Below we present the key excerpts from his must read report;

* * *

We think that the post Bretton Woods (1971-) global financial system remains vulnerable to financial crises. A simple internet search of financial crises through history (Figure 1, LHS chart) confirms that the frequency has increased over this period. Examples include the UK secondary banking crisis (1975), the two Oil shocks (1970s), numerous EM defaults (mid-1980s), US Savings and Loans mass failures (late 80s/early 90s), various Nordic financial crises (late 80s), Japanese stock bubble bursting (1990-), various ERM shocks/devaluations (1992), the Mexican Tequila crisis (1994), the Asian crisis (1997), the Russian & LTCM crisis (1998), the Dot.com crash (2000), the various accounting scandals (02/03), the GFC (08/09) and the Euro Sovereign crisis (10-12).

A more quantitative search backs this up (Figure 1, RH chart). We show the number of DM countries ({5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}) in our sample back to 1800 experiencing one of the following on a YoY basis; -15{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} Equities, -10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} FX, -10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} Bond move, a sovereign default, or +10{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} inflation. This is our crisis/shock indicator. 0{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} equals no country with one of these conditions met, 100{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} equals all in our sample with one being met.

It would therefore take a huge leap of faith to say that crises won’t continue to be a regular feature of the current financial system that has been in place since the early 1970s. The near exponential growth of finance and its liberalisation since this point has encouraged this trend.

Read More @ goldcore.com

Chinese Gold Mining as a Source of Gold Supply

0

from BullionStar:

Introduction

As well as being the largest importer of gold in the world, and the world’s largest consumer of gold, the Chinese gold mining sector is the world’s largest national gold producer. According to the China Gold Association, China produced 453.5 tonnes of gold from mining operations during 2016, maintaining its pole position as the world’s largest gold producer for the 10th consecutive year. Most of this gold production comes from direct gold mining, however, about 10-20{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} results as a byproduct of other non-ferrous mining.

China’s Gold Mining Output

Domestic gold mining is China’s second largest source of gold supply after gold imports[1], and mining supply, together with gold imports, drives the supply side of the Chinese Gold Market supply-demand balance[2].

China’s annual gold mining output is far ahead of both Australia and Russia, the world’s second and third largest gold producers. These two countries produced 270 tonnes and 250 tonnes of gold mining output, respectively, during 2016[3]

Chinese annual gold mining output has grown by 62{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} since 2007, and first exceeded the 300 tonne level in 2009, followed by the 400 tonne level in 2011. By 2014, it had reached a record 478 tonnes of gold output. In early 2017, the Chinese Ministry of Industry and Information Technology stated that the nation plans to boost annual gold output to 500 tonnes per year by 2020. This would mean gold production growing by an annual average 3{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} over the 2017-2020 period[4].

However, judging by the first half of 2017, during which China’s gold production dropped to 206.5 tonnes of gold, the full year figures for 2017 will most likely be lower than in 2016[5].

Contents

China’s In-Ground Gold Reserves

Although the 2017 US Geological Survey (USGS) mineral commodity summary gold report states that China only has in ground gold reserves of 2000 tonnes (and the USGS has not updated this figure since 2009), the Chinese Ministry of Land and Resources circulates far higher figures.

In a June 2015 presentation to a LBMA conference in Singapore, Zhang Bingnan, Chairman of the China Gold Association claimed that China had 9816 tonnes of in ground gold reserves[6]. Bingnan was sourcing his figure from the Chinese Ministry of Land and Resources which releases “China Mineral Resources Bulletins” each year[7]. The 2015 bulletin had included this 9816 tonnes of in ground gold reserves as of year-end 2014. Notably, this figure has now been updated even further in the 2016 mineral resource bulletin which now claims that at year-end 2015, China has a huge 11563.5 tonnes of identified in ground gold reserves[8]. The Ministry of Land and Resources also claims to have discovered an additional 1130.3 tonnes of gold reserves during 2016.

Leading Companies in Chinese Gold Mining Sector

The ten top Chinese gold producers account for over half of the country’s total refined gold output. The largest of these gold mining groups include:

  • China National Gold Group (which controls Zhongjin Gold)
  • Shandong Gold
  • Zijin Mining Group
  • Hunan Gold

China National Gold Group Corporation (CNG)[9] is China’s largest gold producing conglomerate. CNG is owned by the Chinese state and it reports directly the central government in Chinese. Notable, CNG is the only Chinese gold mining company to be a member of the World Gold Council. Companies under the CNG group umbrella include the domestic  mining company, the group’s international arm China Gold International Resources Corporation, and nationwide jewellery network Zhongjin Gold Jeweller.

Zhongjin Gold, headquartered in Beijing, is China’s largest gold mining producer. and owner of the largest in-ground gold reserves of all Chinese mining companies. Its largest mine is in the Dazhuohan region and it also controls gold mining resources in the Shandong province and in other areas of China. Zhongjin Gold shares are listed on the Shanghai Stock Exchange.

CNG corporation holds a 39{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} share in China Gold International which is listed on both the Hong Kong and Toronto stock exchanges. China Gold International also controls 2 operating gold mines in China, one of which is an open pit mine CSH mine located in Inner Mongolia and the other is the Jiama open-pit and underground copper-gold and other mineral (polymetallic) mine located in the Tibet Region. Together these 2 gold mines have proven / probable reserves of 5.1 million ounces of gold (159 tonnes), and measured / indicated resource of 8.5 million ounces (264 tonnes)[10].

The Zhongjin Gold Jewellery subsidiary distributes gold in approximately 1,600 gold jewellery stores throughout China. These outlets sell CNG branded gold bars as well as other gold investment products.

Shandong Gold Group is a state-owned company controlled by Shandong Provincial Government, and is named after the Shandong province in East China, which is located north-west of Shanghai. Shandong’s stock is listed on the Shanghai and Shenzhen stock markets.

Shandong is one of China’s largest gold groups in terms of gold output[11]. Shandong controls over 1000 tonnes of identified gold resources on the Jiaodong Peninsula, one of the most gold resource rich areas of China, and more than 1400 tonnes of identified gold resources overall.

Four of its mine locations, each with over 100 tons of gold resources, are located in the Sanshan Island, Jiaojia, Linglong and Xincheng areas of Shandong. While most of the group’s gold resources are within Shandong, the Shandong Gold also controls gold resources in other areas of China and also outside China. Recently Shandong Gold discovered the huge new “Xiling” gold deposit near its Sanshan Island gold mine. According to Shandong, this Xiling gold deposit, which is still at the exploration stage, will in time produce over 550 tonnes of gold and will prove to become China’s largest ever single gold deposit.

Zijin Mining Group, one of China’s largest mining groups, controls mineral assets across gold, copper, iron ore and other minerals. The group is involved in exploration, mine development, mine production and refining, and has over 1350 tonnes of in-ground gold reserves/resources[12]. Zijin’s gold mines include the open-pit Zijinshan Gold & Copper Mine in Shanghang which contains one of the largest gold deposits in China, the open-pit Liba gold mine in Gansu province, the Shanggong underground gold mine in Hunan province, and the Dongping gold mine in Hebei province[13].

The group also has a 70{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} ownership in the Yinhui Gold Refinery located in Hunan province[14]. Zijin’s stock is listed on both the Shanghai and Hong Kong stock exchanges.

Hunan Gold Corporation, is headquartered in Huaihua in the southwestern Chinese province of Hunan, hence the ‘Hunan’ name. Formerly known as Chenzhou Mining Group, the group changed name to Hunan Gold during 2015. Hunan is involved in exploration, mining, processing and smelting of non-ferrous metals including gold. Gold bars / ingots produced by Hunan are fabricated under the Chenzhou brand name[15].

Chinese Gold Army

The Chinese Armed Gold Police Force is a special division of xxx which is tasked with gold and other mineral exploration across China, including geological gold surveys, drilling, and prioritising areas for exploration focus. In short, its main task is to “find gold for the country”.

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