Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Fall Before Fed Day
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 3 20 2018
By: Ira Epstein

Fed Day: Mr. Market Meets Mr. Hyde
By: Stewart Thomson

Bear Stearns – A Different Opinion
By: Theodore Butler

Here’s What Inflation Could Look Like in 2020, Based on Past Surges
By: Jeff Clark

Politics And Investing
By: Axel Merk

Jack Chan's Weekly Precious Metals Update
By: Jack Chan

Does Weiner really know what central bankers think better than they themselves do?
By: Chris Powell

Another look at gold’s true fundamentals
By: Steven Saville

The Crypto Market Conundrum
By: Ryan Wilday


GoldSeek Web

Chinese rushing into physical gold in huge volume as stocks crash

 -- Published: Tuesday, 23 June 2015 | Print  | Disqus 

By Peter Cooper

The first signs of a rush to convert financial assets into physical gold in China have emerged with a spike in physical gold payouts at the Shanghai gold exchanges.

Withdrawals of physical gold from the Shanghai Gold Exchange and Shanghai International Gold Exchange jumped 41 per cent in the trading week 8-12th June from the previous week, while year-to-date withdrawals are up 20 per cent to an incredible 1,061 tones.

Massive rotation

To put that figure into perspective, that is higher than China’s entire last officially declared gold reserve. It represents a massive conversion of paper assets into bars of the precious metal.

The 8-12th June gold rush came before the Shanghai Composite began to sell-off late last week, quickly entering a bear market with stocks down more than 20 per cent. How much paper gold trading has been converted into the physical stuff in this market collapse?

The shift into physical gold earlier this month looks like the smart money getting out ahead of the herd. But where else can Chinese investors park their cash in an emergency?

Their fear must surely be that another deluge of money printing will be the response of the authorities. Chinese inflation has already been epic since the global financial crisis and the money printing that followed, just go there and buy things to find out.

Bubble profits

Indeed the stock market bubble itself is a product of money printing. Investors wishing to protect themselves from the next blast of inflation, or actually to profit from it are buying gold.

How long before this begins to affect headline gold prices? Surely as the stock market tanks we will not have to wait until the next batch of figures confirm what was happening in early June.

Gold will be the next asset class to go into a bubble now that the Chinese equity bubble is bursting.

| Digg This Article
 -- Published: Tuesday, 23 June 2015 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.