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China's New Precious-Metals Exchange Will Send Gold And Silver Skyrocketing, Ex-Goldman Trader Says

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"It's going to have a major impact on the demand side of precious metals equation," Andrew Maguire says

Former Goldman Sachs trader Andrew Maguire explains why he predicts China's new Pan Asia Gold Exchange will usher in a new demand for physical gold and silver in a new interview with King World News, which we've pulled key parts from and transcribed below.

"The Pan Asia Gold Exchange is going to send shockwaves through the mechanisms for the price discovery for both gold and silver. It's backed by China's state administration for foreign exchange and also the Chinese security regulatory commission. But the biggest bombshell is the offer of an RMB gold contracts for international investors.

"This is concrete evidence that China plans to bring the renminbi to the world stage. It's going to provide access to a much more physical market and I know it's going to attract a lot of the world's precious metal business, providing much more of the Chinese and the international customers an alternative platform on which they can buy and sell buy and sell physical gold and silver.

"Now the first contract is actually going alive this month and its a 10-ounce gold mini-contract for the domestic Chinese retail market, which really until now has been restricted to physical purchases, so this domestic contract should be fully operational this month.

"It's going to have a major impact on the demand side of precious metals equation. Especially as there are 320 million customers of Ag bank of China, who going to be plugged into this exchange platform from the off. ... If just 1% of their customers bought a single 10-oz contract, that would require new physical demand of 1,000 tons.

"Now this is welcome competition. And it should improve price discovery and dilute the effect of short side concentration.

"The impact on silver is going to be much more pronounced. We know silver is a much small market and it's already in tight supply. This is the tinder box."

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This is Andrew Maguire's interview on King World News. I highly rate Andrew Maguire's knowledge and opinion of the PMs market.

http://kingworldnews.com/kingworldnews/Broadcast/Entries/2011/7/11_Andrew_Maguire.html

I am very well positioned to take advantage of the PMs continuing upward trend, however I do feel certain dread of where things are going.

Also on King World News is the latest interview with Ben Davis, CEO of Hinde Capital, who predicted silver taking off in late Summer last year and then silver's pullback and bottoming out this year with absolute perfection. :o

With gold closing in on $1,600 and silver attacking the $40 area, today King World News interviewed Ben Davies, CEO of Hinde Capital. When asked about the breakout to new highs occurring in summer Davies stated, “This has the smell of 1998 when I was trading US government bonds and everyone was away on holiday and problems were beginning to brew. Stock markets were beginning to get violent in reaction to Russia’s problems and it all kicked off in the summer months and people were being called back to their desks.

I just have that same kind of feeling now. This is not one I want to fight, the market is a little bit rich now in the short-term, but this could be the baby that takes us over the course of the next four months to that very tantalizing level above $2,000. I really think this is the move.”

The full article.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/7/14_Ben_Davies_-_Gold_to_Break_Above_$2,000_in_the_Next_4_Months.html

Edited by Take Me Back To London!

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Pump and dump.

The search for new suckers to offload onto.

We would appear to now be in the end game.

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Pump and dump.

The search for new suckers to offload onto.

We would appear to now be in the end game.

The only pump and dump suckers are those that buy/bought PM ETFs, futures contracts, non-allocated accounts and other PM derivatives that doesn't actually leave them in possession of physical.

For decades the likes of JPM have pushed physical down by issuing paper PMs, and for decades the govmts have supported this because it soaks up the fiat money that they are issuing to pay their cronies and the welfare state without leading to inflation of goods that the sheeple see, and which would make them discontent.

A new PM exchange in Asia will see more people taking hold of physical, which will overcome the already strained effeorts of the paper PM pushers, and spot price will explode.

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Having just bought this kilo dragon "diamond eyes" at considerable premium over standard kilo lunar coins...

98c.JPG

.. I guess I'm the sucker :)

PHWOOOOOOOOAR , it's P.M Porn I tells thee :D

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Having just bought this kilo dragon "diamond eyes" at considerable premium over standard kilo lunar coins...

.. I guess I'm the sucker :)

That is a nice piece but if you paid a considerable amount over spot then I would have to agree you tbh.

I hope for you that the piece ends up with a significant collectible value due to low numbers and gains in value but suspect that it will only ever re sell at a slight premium over spot.

I would say that it would be a nice talking piece but anyone that has something like that out on display is just asking for it. So if you cant display it and cant talk about it then why pay a heavy % over spot for it?

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Agreed, but you know when you really want something... :D

Yep, well at least you had the balls to just buy what you wanted.

I wanted to buy a kilo bar of gold back in '09 but wifey moaned about me risking our house money. She is never right and I cant believe that I let her sway me again but she did. I now get to remind her of it constantly but it doesnt make up the potential loss of a gain.

I like silver but I wont do premiums and I wont do vat which is why I will likely never end up with a piece like that, but then if it is never to see the light of day then what does it matter?

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Having just bought this kilo dragon "diamond eyes" at considerable premium over standard kilo lunar coins...

98c.JPG

.. I guess I'm the sucker :)

What a kilo bad boy!

Looks like something that a Triad Boss would keep on his mahogany desk. B)

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Yep, well at least you had the balls to just buy what you wanted.

I wanted to buy a kilo bar of gold back in '09 but wifey moaned about me risking our house money. She is never right and I cant believe that I let her sway me again but she did. I now get to remind her of it constantly but it doesnt make up the potential loss of a gain.

I like silver but I wont do premiums and I wont do vat which is why I will likely never end up with a piece like that, but then if it is never to see the light of day then what does it matter?

You get the VAT back when you sell if you do it privately, say via ebay. So that's not necessarily a problem.

Agreed that the premium on that bad boy doesn't make it the best way to buy silver. The bulk of any purchase should be boring old bullion, because you are buying for the silver value, not the notional value, so bullion should be your first port of call. But still, I think you'll agree it's a nice addition to top off somebody's otherwise ordinary collection. First time I've heard of one or seen one BTW.

BTW, you haven't missed the silver boat, not a by a long shot. It's on the march again after it's correction, now is still a good time to buy as it's nudging $40/Oz this week, it'll be hitting $50/Oz again soon and then much further beyond. QE3 ended and surprise, surprise, despite those that claimed that would pole axe silver and gold, they held there ground and are advancing once more.

I recommend King World News for info on gold and silver. It will really give you the picture on a lot of what lies behind the gold/silver story, but in a very concise bite-sized way. Most of that stuff that does get talked about here sooner or laterobviously, but it's a nice little news feed that gets updated with a short article or two every day or two, all in one place (site can be a little sluggish though). I recommend you read it for a week, you should find it very enlightening.

Also take a look at this if you haven't seen it yet, the relatively straight bits are when we were on the gold standard, the rest is history and the future:

16ljw9e.jpg

That money in the bank isn't going to grow and they'll keep QEing and ZIRPing to keep house price nominally high, while debauching the currency. They have to, as the governments now owns a huge chunk of the mortgages in the UK now, via the bailed out banks. This story is only going one way.

Edited by General Congreve

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"It's going to have a major impact on the demand side of precious metals equation," Andrew Maguire says

Former Goldman Sachs trader Andrew Maguire explains why he predicts China's new Pan Asia Gold Exchange will usher in a new demand for physical gold and silver in a new interview with King World News, which we've pulled key parts from and transcribed below.

"The Pan Asia Gold Exchange is going to send shockwaves through the mechanisms for the price discovery for both gold and silver. It's backed by China's state administration for foreign exchange and also the Chinese security regulatory commission. But the biggest bombshell is the offer of an RMB gold contracts for international investors.

"This is concrete evidence that China plans to bring the renminbi to the world stage. It's going to provide access to a much more physical market and I know it's going to attract a lot of the world's precious metal business, providing much more of the Chinese and the international customers an alternative platform on which they can buy and sell buy and sell physical gold and silver.

"Now the first contract is actually going alive this month and its a 10-ounce gold mini-contract for the domestic Chinese retail market, which really until now has been restricted to physical purchases, so this domestic contract should be fully operational this month.

"It's going to have a major impact on the demand side of precious metals equation. Especially as there are 320 million customers of Ag bank of China, who going to be plugged into this exchange platform from the off. ... If just 1% of their customers bought a single 10-oz contract, that would require new physical demand of 1,000 tons.

"Now this is welcome competition. And it should improve price discovery and dilute the effect of short side concentration.

"The impact on silver is going to be much more pronounced. We know silver is a much small market and it's already in tight supply. This is the tinder box."

Read Article

Indeed. We live in interesting times.

What many don't think about is how during the last gold/silver bull run it was just the West taking part. Now billions of Chinese and hundreds of millions, if not billions, of others from former communist countries and BRIC countries with newly-earned wealth are in on the act. So there is vastly more people competing for what is, per head, much less gold than back then (when you take account of mined gold and population growth since then). Not the most important reason, but a notable one for why this ship is going to the moon.

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What a kilo bad boy!

Looks like something that a Triad Boss would keep on his mahogany desk. B)

Triad bosses don't buy silver they deal in Krugers, lots of them. I know this because one of the Manchester gangbangers asked me for investment advice. It was only later on I was told who he was. He is quite happy with my advice though.

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16ljw9e.jpg

That money in the bank isn't going to grow and they'll keep QEing and ZIRPing to keep house price nominally high, while debauching the currency. They have to, as the governments now owns a huge chunk of the mortgages in the UK now, via the bailed out banks. This story is only going one way.

I believe that is misleading tbh as £ today is not the £ of 1850. There have multiple defaults along the way each time there has been a significant change to the currency. Like each time they came off the gold and silver standard. Decimalization etc. Last time was both the nixon shock and decimalisation in 1971 thats 40 years. No filthy paper money lasts more than 45-50 years tops!

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Triad bosses don't buy silver they deal in Krugers, lots of them. I know this because one of the Manchester gangbangers asked me for investment advice. It was only later on I was told who he was. He is quite happy with my advice though.

On that basis you still have you kneecaps and gonads then?wink.gif

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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