BullionStar Blogs

Dutch Central Bank Tight-Lipped About Gold Policy

• 10 Jan 2014 18:16
• Koos Jansen

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Only 11 % of Dutch official gold reserves, which is 613 tons in total, is stored in Amsterdam. The rest is held abroad; 20 % in Ottawa, 20 % in London and 49 % in New York. Because of my believe gold will re-enter the monetary system within a few years I’m most concerned about the … Continue Reading

Guest Post: Gold Pricing and The Flows Of Gold Metal

• 8 Jan 2014 18:44
• Koos Jansen

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Written by 24 carat. Up until now, the gold price did never caught up with 100 years of currency devaluations. This makes us believe the $ is better than gold, accomplished through the artificial fixing of the gold price. The international $ monetary system still dictates the entire world what the appropriate gold price is. The … Continue Reading

China’s FX Research Center: Gold Is The Strategy

• 7 Jan 2014 12:09
• Koos Jansen

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The next translation I present is from a speech by Tan Ya Ling, President of the China Foreign Exchange Investment Research Institute, given on a gold conference May 7, 2013 Beijing. Probably it’s not the whole speech as the title of the original article mentions oil, but the article itself doesn’t. When I googled Tan Ya … Continue Reading

Unprecedented Total Chinese Gold Demand in 2013

• 4 Jan 2014 02:43
• Koos Jansen

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Friday the numbers were released on total Chinese gold demand for 2013. Total demand can be measured by the amount of physical gold that is withdrawn from the vaults of the Shanghai Gold Exchange. In the last full trading week (#52, December 23 – 27) of 2013 there were 53 tons of physical gold withdrawn, which … Continue Reading

Is the U.S. Suppressing Gold to Ensure Dollar's Dominance?

• 2 Jan 2014 14:48
• Koos Jansen

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I’ve got a confession to make: I believe in conspiracy facts. After having witnessed scandals like NSA, LIBOR, Lance Armstrong, ISDAfix, money laundering by too big to fail banks, rigged currency rates, Bernie Madoff, the US sub-prime crisis, bank bailouts (in Europe and the US), the Greek tragedy, 9/11, the Iraq invasion and Enron, I came to the conclusion it is just what people... Continue Reading

New Year’s Eve Gold Rush At Shanghai Shopping Mall

• 31 Dec 2013 15:30
• Koos Jansen

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This email was just sent to me by one of my Chinese friends. New year’s eve is big sales day in Shanghai. The biggest shopping mall usually sell as much goods on 12/31 as it sells in one month. This shopping mall stocked 200 kilos of gold bars and sold out in 3 hours because … Continue Reading

China Accumulates Gold For The World Dream

• 30 Dec 2013 22:46
• Koos Jansen

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Gold will return to the international monetary system and China will have a great influence in how this will play out. In 2013 China has imported 2000 tons of gold, quickly becoming one of the most powerful voices at the IMF table. In the following translation we can read how Mr. Zu He Liang, director at … Continue Reading

YTD SGE Delivery 16-20 December 55 Tons, 2128 Tons

• 29 Dec 2013 15:34
• Koos Jansen

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In the end stage of 2013, in between 16 – 20 December, the “Chinese Aunties" have withdrawn 55 tons of gold from the vaults of the Shanghai Gold Exchange. That’s more than the official gold reserves of Finland and most likely more than what has been globally mined that week. The Chinese gold rush has been … Continue Reading

More On The West To East Gold Exodus

• 29 Dec 2013 00:25
• Koos Jansen

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The most significant parameter to measure the gold distribution from west to east is the trade vein that runs from the UK through Switzerland through Hong Kong, eventually reaching Shanghai. The UK Source In October the UK has net exported 90 tons of gold to Switzerland, – 16 % m/m, year to date the Swiss … Continue Reading

Who Controls the U.S. Media?

• 28 Dec 2013 12:49
• Koos Jansen

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Are US citizens “unconsciously" stimulated into consuming goods through the media? Watch this Youtube clip and judge for yourself: In Gold We Trust Continue Reading

How Gold is Smuggled Into Mainland China

• 27 Dec 2013 17:21
• Koos Jansen

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While I’m still researching all the other ways of how the Chinese may be smuggling gold from Hong Kong into the mainland, I came across an interesting video from CCTV in which is exposed how smugglers dig tunnels underneath Honk Kong borders in order to transport “goods" to places where there is demand for “goods". … Continue Reading

YTD SGE Delivery 2073 Tons, 50 Tons From 9-13 December

• 20 Dec 2013 21:16
• Koos Jansen

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The amount of gold withdrawn from the Shanghai Gold Exchange vaults has been increasing in recent weeks. After an explosive week in April, when 117 tons of gold were withdrawn, weekly averages came down to a constant 40 tons throughout the year. At the end of October it seemed Chinese demand for physical gold was … Continue Reading

SGE Chairman: Huge Potential For Gold Investment

• 19 Dec 2013 11:01
• Koos Jansen

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Since October 2013 there is a new chairman at the Shanghai Gold Exchange. After Shen Xiangrong (2002) and Wang Zhe (2010), it’s now the turn to Xu Luode (2013): Xu Luode was born in 1962 and has been a member of the Chinese Communist Party since June 1982. In 1983 he graduated as a Bachelor in Economics at … Continue Reading

China Prepares For Financial Warfare

• 11 Dec 2013 13:48
• Koos Jansen

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On 17 and 18 September 2011 a conference on “risk management for Chinese corporations" was held in Shenzen, China, organized by the research center of the State-owned Assets Supervision and Administration Commission of the State Council (SASAC). An introduction of a few speakers: General Qiao Liang, who wrote this book. Mei Xinyu, researcher at the Chinese Academy of International... Continue Reading

China Mainland Gold Imports Accelerating

• 8 Dec 2013 17:12
• Koos Jansen

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This week the the Hong Kong Census and Statistics Department officially released their trade numbers from October. Whilst they offer specific numbers in advance to anybody willing to pay, I rather wait for the total booklet to be published free of charge. Most significant is the amount of gold net exported to the mainland, up 21 … Continue Reading

YTD SGE Delivery 1979 Tons, 51 Tons In Week 48

• 6 Dec 2013 19:40
• Koos Jansen

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Physical withdraws from the Shanghai Gold Exchange vaults were up 8 tons last week, 51 tons from 43 tons a week earlier, up 16.53%. As we heard a few days ago from the biggest refinery in Switzerland they have been working 24 hours a day in three shifts all year in order to supply the Chinese, and this … Continue Reading

Alex Stanczyk: Physical Gold Supply Has Never Been Tighter

• 5 Dec 2013 20:08
• Koos Jansen

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Wednesday I had the privilege again to interview Alex Stanczyk, Chief Market Strategist for the Anglo Far- East group of companies, who just returned from a trip to Switzerland. Alex confirmed to me the distribution of gold from west to east is not slowing down whatsoever. Refineries in Switzerland are still working 24 hour a day … Continue Reading

China Embraces Bitcoin

• 1 Dec 2013 16:20
• Koos Jansen

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Bitcoins can vanish, gold can not. That’s the bottom line for me. Like most people I’m not a software engineer, for me it’s nearly impossible to ever be sure about the safety of Bitcoin. My trust in the virtual currency can only be based on my trust in software engineers. If I deposit one troy ounce … Continue Reading

YTD SGE Delivery 1928 Tons, 43 Tons in Week 47

• 29 Nov 2013 22:20
• Koos Jansen

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Physical delivery from the Shanghai Gold Exchange remains extraordinary robust throughout November. According to numbers released today by the SGE, last weeks delivery was 43 metric tonnes, up 7.5 % from a week earlier. Total SGE delivery year to date stands at 1928, on track to reach 2092 tons at the end of December. Total … Continue Reading

Minutes Of Kissinger Meeting On Gold, 1974

• 28 Nov 2013 15:49
• Koos Jansen

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After Nixon “temporarily" suspended the convertibility of dollars into gold in 1971, because evil international speculators were attacking the US dollar, some of the European countries were not amused the US broke its promise. In the years that followed a diplomatic battle ensued; the US wanted to completely phase out gold from the monetary system in … Continue Reading

Official India PM Import August: Gold Down, Silver Holds

• 26 Nov 2013 10:30
• Koos Jansen

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India’s official gold import is coming down like a hammer. In August India’s gross gold import was a mere 17 tons, – 72 % m/m, – 65 % y/y. The lowest since February 2009. In the first 8 months of this year total gross import accounted for 708 tons, up 111 tons compared to the … Continue Reading

Chinese Gold Mining Exploding

• 25 Nov 2013 12:49
• Koos Jansen

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In September 37.642 tons of gold were produced in China, according to the China Gold Association. January-September Chinese gold mining totaled 307.809 tons. Compared to last year, gold production increased by 19.608 tons, an increase of 6.8 %. China is on track to mine 410 tons in 2013, being the biggest gold miner for seven consecutive years. In 1949 the Chinese … Continue Reading

BullionStar is interviewed by the Wall Street Journal

• 16 Nov 2013 06:30
• BullionStar
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We are interviewed by the Wall Street Journal on the demand for silver coins demand in Asia. Continue Reading

West to East Gold Distribution Update

• 15 Nov 2013 23:04
• Koos Jansen

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The great distribution of wealth and power, facilitated by gold, from west to east is still going strong. From looking at available global trade numbers we know the main gold vein runs from the UK through Switzerland, through Hong Kong, eventually reaching Shanghai. Let’s take a look at the latest data. Starting Point: The London Gold Vaults It started … Continue Reading

The Chinese Leaders Behind Their Gold Rush

• 14 Nov 2013 22:34
• Koos Jansen

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In part four of Jan Skoyles and Koos Jansen’s look into China’s gold market they turn their attentions to the individuals behind the moves to get China investing in gold. In our superb infographic we highlight the top ten. Read on to find out more about these individuals and some of their contemporaries. In recent months we have been looking into the … Continue Reading

Gold and The Monetary System: The US–EU Conflict

• 9 Nov 2013 21:52
• Koos Jansen

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For anyone who is still in doubt if the US have been suppressing the price of gold in the past decades, this article might change your mind. I present a memo written in 1974 by Sidney Weintraub, Deputy Assistant Secretary of State for International Finance and Development, to Paul Volcker, Under Secretary of the Treasury for Monetary Affairs. It was originally published in Document... Continue Reading

Mainstream Media Reports On SGE Physical Delivery

• 7 Nov 2013 10:49
• Koos Jansen

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Although I can’t track all media on Shanghai Gold Exchange coverage – maybe they report more on it than I know – but as far as I know the big guys wrote about SGE physical delivery twice now. Bloomberg, 15 July 2013: The Shanghai Gold Exchange supplied 1,098 metric tons in the six months through June, compared with … Continue Reading

Dutch & German Food Delivery Service Accepts Bitcoin

• 6 Nov 2013 10:39
• Koos Jansen

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Takeaway.com, a website through which customers can order food from thousands of restaurants, has subsidiaries in 10 different countries. As of yesterday, 5 November 2013, payments at three of these subsidiaries can be made in Bitcoin; in The Netherlands, Germany and Austria. From now on everyday food purchases can be payed in Bitcoin in these countries. The Dutch … Continue Reading

Greater China Net Gold Import 1316 Tons YTD

• 5 Nov 2013 16:08
• Koos Jansen

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In September the mainland net imported 109 tons of gold from Hong Kong, down from 110 tons in August, – 1% m/m, year to date net import is 826 tons. Annualized mainland net import through Hong Kong is 1101 tons, a surge of 109 % as total import in 2012 was 525 tons. Note, the mainland … Continue Reading

The Wall Street Code

• 5 Nov 2013 10:02
• Koos Jansen

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How A Quant Found Out The True Workings Of Stock Exchanges In my opinion the best TV program in the Netherlands is Tegenlicht, an excellent documentary series often about the abuses in the world of finance. Yesterday evening, yes I stayed home for this, the episode was about High Frequency Trading (HFT). Star of the … Continue Reading

Professor Yu Yongding On Gold

• 3 Nov 2013 14:29
• Koos Jansen

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Professor Yu Yongding is, in short, an Academician of the Chinese Academy of Social Sciences (CASS), Editor-in-Chief, China and World Economy (1998- ), Member of Advisory Committee of National Planning of the National Development and Reform Committee of the PRC (2004- ), Member of Advisory Committee of Foreign Policy of the Ministry of Foreign Affairs of the PRC (2010- ), and he was,... Continue Reading

Shanghai Gold Exchange Physical Delivery Week 43

• 1 Nov 2013 23:55
• Koos Jansen

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Physical gold withdrawn from the SGE vaults was 33 tons last weeks (21-10-2013/25-10-2013), down 18 % from a week earlier. Premiums also came down, on 21 October the price of gold (Au99.95) on the SGE was 0,8 % over the international price, on 25 October it was 0,09 %. This is remarkable because premiums in … Continue Reading

PBOC Governor Zhou Xiaochuan On Gold

• 1 Nov 2013 11:05
• Koos Jansen

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The next quotes are from a speech that Zhou Xiaochuan, governor of the People’s Bank Of China from 2002 till present, gave at the LBMA conference in 2004. Give Full Play to the Gold Market’s Investment and Hedging Functions The establishment and development of China’s gold market marks the basic completion of the construction of … Continue Reading

Central Banks Bullish On Gold At LBMA Conference

• 28 Oct 2013 09:42
• Koos Jansen

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At the LBMA conference in Rome earlier this month there were a number of representatives from central banks that gave an interesting keynote speech. Namely: – Salvatore Rossi, Deputy Governor, Banca d’Italia – Alexandre Gautier, Director of Market Operations Department, Banque de France – Juan Ignacio Basco, Deputy General Manager, Central Bank of Argentina... Continue Reading

Shanghai Gold Exchange Physical Delivery 1750 Tons YTD

• 27 Oct 2013 15:32
• Koos Jansen

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The SGE is on track to deliver 2125 tons of gold this year in total. This would be 87 % more than in 2012.   Continue Reading

Week 42 SGE Physical Delivery and Its True Context

• 25 Oct 2013 21:04
• Koos Jansen

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When I speak of physical delivery at the Shanghai Gold Exchange (SGE), I mean gold that is withdrawn from the vaults – the SGE is an exceptional exchange because it publishes these numbers. Technically, “Delivery" is a misnomer by me (and the SGE). On all other futures exchanges “delivery" actually means the amount of gold … Continue Reading

Switzerland Has Never Exported This Much Gold

• 23 Oct 2013 16:36
• Koos Jansen

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Four of the largest gold refineries on earth are located in Switzerland, being Metalor, Pamp, Argor-Heraeus and Valcambi. It’s estimated 70 % of the world’s refining is done near the Alps, therefor massive amounts of gold are distributed here; Switzerland has imported 808 tons of gold in the third quarter of 2013, and exported 680 tons in … Continue Reading

1974 Meeting European Ministers Of Finance On Gold

• 22 Oct 2013 19:15
• Koos Jansen

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This one I had to share, a report on a meeting held by all European Ministers of Finance about gold, written to the American Ministry Of Foreign Affairs in 1974: FOLLOWING IS TEXT OF STATEMENT MADE TO C-20 DEPUTIES’ MEETING ON MAY 7 BY DUTCH TREASURER-GENERAL OORT RE ZEIST MEETING OF EC FINANCE MINISTERS APRIL … Continue Reading

Analyze This!

• 21 Oct 2013 00:04
• Koos Jansen

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A few weeks ago I was researching UK gold trade data on the Eurostat website when I stumble upon something quite remarkable, or not. When I looked at the 2008 numbers on trade between the UK and Germany I saw a few unusual spikes. In August 2008 the UK imported 613.9 tons from Germany, in … Continue Reading

Week 41 Shanghai Gold Exchange Physical Delivery

• 18 Oct 2013 12:05
• Koos Jansen

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Today the SGE published trading numbers from last week. The Chinese are not slowing down their physical gold purchases this year. Although the 2013 weekly SGE delivery record stands at 117 tons, last weeks physical delivery was 47 tons, which is above the yearly average of 41.7 tons. We saw a little rise in the … Continue Reading

GOFO Nosedive, 1, 2 , and 3 Months Turn Negative

• 16 Oct 2013 19:04
• Koos Jansen

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This week premiums for spot gold in India surged to $100 an ounce. This could have resulted in a shortage of physical gold on the LBMA, where GOFO rates of 1, 2 and 3 months turned negative as of today. Continue Reading

India July Silver Imports High At 797 Tons, YTD 3942 Tons

• 12 Oct 2013 14:07
• Koos Jansen

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The results of India’s import duty on gold – that went up in January from 4% to 6 %, in June to 8 % and in August to 10 % – are obvious. Premiums have risen, “official" gold import has dropped significantly since June (shrinking the country’s trade deficit to a 30-month low in September) and silver import has … Continue Reading

China Already Has The Gold Pricing Basis

• 11 Oct 2013 14:10
• Koos Jansen

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Article from the China Gold Association (CGA) on China’s gold pricing power, translated by Soh Tiong Hum: China Already Has The Gold Pricing Basis Published :2012-02-15 Since June 2008 there’s a financial crisis wherein gold prices soaring from less than USD 1000 per ounce to the current USD 1700 per ounce are a microcosm of … Continue Reading

Biggest Economic Power Shift In Decades

• 10 Oct 2013 16:37
• Koos Jansen

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2013 is the year wherein unprecedented amounts of physical gold are distributed from west to east; a shift in wealth and power not seen in decades. An overview, based on trade data from January till August, of the gold routes to China: The majority of the gold that is being shipped to the east springs … Continue Reading

Mainland & Hong Kong Net Gold Import Jan-Aug 1154 Tons

• 8 Oct 2013 11:35
• Koos Jansen

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Although the price of gold has not been able to remain north of $1400 in August, the Chinese continued accumulating gold throughout the month in order to ‘store wealth among the people‘. When looking at data from the Hong Kong Census And Statistics Department extraordinary large amounts of gold were imported by Hong Kong as … Continue Reading

Run on the Fed Highlights the Importance of Gold Reserves

• 4 Oct 2013 11:19
• Koos Jansen

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In order to strengthen the Chinese economy and protect it from external shocks the Chinese government has been stimulating its people to buy physical gold since 2001. Although they have been buying massive amounts of gold in the last years, their grams per capita still stands far lower than the global average. My lowest estimate is 4.3 … Continue Reading

Week 39 Shanghai Gold Exchange Physical Delivery

• 4 Oct 2013 09:15
• Koos Jansen

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I was very delighted yesterday that me and Jan Skoyles published the second part of our collaboration. A fantastic overview of the Chinese gold market. Watch out next week for the sequels! Now let’s rush to last weeks SGE delivery numbers.Shanghai Gold Exchange – 50 metric tonnes delivered in week 39 (left the SGE vaults), 23-09-2013/28-09-2013 – … Continue Reading

The History of the Chinese Gold Market

• 1 Oct 2013 16:01
• Koos Jansen

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I’m very proud and excited to announce a collaboration between me and Jan Skoyles from The Real Asset Company. Today part one: Tracing The Great Chinese Gold Rush. In oncoming parts we will inform you on every detail of Chinese gold market, in example gold trade, the Shanghai Gold Exchange, the Shanghai Futures Exchange, the OTC … Continue Reading

Shanghai Gold Physical Delivery vs. Mining vs. Import

• 29 Sept 2013 21:41
• Koos Jansen

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In the first seven months of this year total physical gold withdrawn from the 49 vaults of the Shanghai Gold Exchange was 1333 tons. Chinese domestic mining in this period was 231 tons and net import through Hong Kong 607 tons. Scrap supply couldn’t have been more that 150 tons, which means 345 tons had … Continue Reading

Gold Held in China

• 26 Sept 2013 10:54
• Koos Jansen

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The other day I saw a chart in a video from Mike Maloney on how much gold we know is held in China. It inspired me to make my own version of it. I have trade data from Hong Kong through which we know how much gold goes in and out of the mainland – … Continue Reading