Wednesday, January 29, 2014


Inteligencia Financiera Global blog (Global Financial Intelligence Blog) is honored to present an exclusive interview with the entrepreneur Hugo Salinas Price, by Guillermo Barba. We are sure our readers from around the world will enjoy it.
- Mr. Salinas, thank you for accepting this interview.
As many people know, you have been an advocate for liberty, free markets and honest money among other topics. You are started the project-proposal of monetizing the pure silver coin in Mexico but, can your proposal be implemented in any country? What does it take to do that? Could gold be monetized the same way?
My proposal was, and is, to give a monetary value in local currency, to a silver coin which has no engraved value upon its face. The monetary value – higher than the value of the silver in the coin itself – could be quote, ideally from the Treasury. If the price of silver rises, this quote could be increased to give the silver coin a higher monetary value. (It could rise either because the price of silver in dollars has risen, or because the local currency has devalued.) But under no circumstances should the monetary value, once quoted, ever be reduced. If the value of the silver in the coin falls, the monetary value remains the same.

Saturday, January 11, 2014

Give me the gold! Why Middle East demand for the precious metal in the jewelry business is growing 25+ percent annually

November 27th 2013
Consumer demand for gold jewelry worldwide grew by 20 percent for the year ending September 2013, reaching 3,757 tons and valued at $183.9 billion, the World Gold Council’s Gold Demand Trends report published this month said.

During the same time period, the report said regional consumer demand for gold jewelry has grown by 25 percent, reaching 225.8 tons and valued at $10.9 billion, with the UAE and Saudi Arabia featuring prominently.

In the UAE, gold jewelry demand has grown by 23 percent, reaching 73.1 tons worth $3.5 billion, while Saudi Arabia saw 71.7 tons of consumer gold jewelry demand worth $ 3.4 billion - up 13 percent year-on-year.

Click here to read more from

UK gold exports surge tenfold The First Half Of 2013 August 20th 2013

The UK’s gold exports have surged nearly tenfold this year as investor selling drives the bullion out of London vaults into the hands of Asian consumers.
UK gold exports to Switzerland, the hub of the gold refining industry, leapt to 798 tonnes in the first six months of the year, up from just 83 tonnes in the first half of 2012, according to data from Eurostat, the European Union’s statistics office.

The exports – worth €29bn and equivalent to nearly 30 per cent of global annual mine production – underscore the scale of the shift in gold ownership taking place as western investors lose their enthusiasm for the metal.

Perth Mint Gold Sales Surge 41% in 2013 on Worst Rout Since 1981

Gold sales from Australia’s Perth Mint, which refines most of the bullion from the second-biggest producer, climbed 41 percent last year as bullion capped the worst annual loss in more than three decades.
Sales of gold coins and minted bars totaled 754,635 ounces in 2013 from 533,333 ounces a year earlier, according to data from the mint. Silver coin sales surged 33 percent to about 8.6 million ounces from 6.5 million ounces in 2012, it said.

Gold Goes from West to East through Switzerland

When I look at these two charts below from Koos Jansen (In Gold We Trust), I’m always amazed with the volume of gold being transferred from the West to the East, after a stop in Switzerland.
You can notice that almost all of the gold imported in Switzerland this year has been quickly exported toward China, via Hong Kong.

After having been transformed from 400-ounce bars with 99.95 purity (Western standard) to 1- kilogram bars with 99.99 purity (Asian standard), the gold is promptly exported from Switzerland to China. The volume of Swiss gold exports to Hong Kong was multiplied five-fold this year.

When one knows that the premiums on gold prices in India are rising because of import restrictions and that the demand for gold in China is still rising, one may wonder, how long will the gold price be determined by the West’s derivatives markets rather than by the physical markets of the East? Also, one must not forget that gold bought by individuals in Asia and by the world central banks is taken off the market for considerable periods of time (10-20 years), which diminishes the available volume for trading.

Pakistan Gold imports up 87.02pc in July-November 2013 (Imported 3.77 Tons)

ISLAMABAD: The gold imports during the first five months of current fiscal year 2013-14 surged by 87.02 percent as against the same period of last year.
According to data revealed by Pakistan Bureau of Statistics (PBS), during the period under review, 3,427 kilograms of yellow metal worth of US $139.921 million was imported as compared to the import of 1,380 kg valuing $74.815 million during July-November 2012-13.

List of countries by gold production

Click Here To Go To Wikipedia and see The U.s. Geological Survey Data

Past 4 Years Gold Imports Into China VS. Gold Price

Record U.S. Gold Bullion Exports Head to Hong Kong & Switzerland

As the Fed continues with its Quantitative Easing policy, U.S. gold bullion exports hit a new record in the first nine months of 2013.  While it’s no secret to anyone in the precious metal community, the majority of U.S. gold exports found their way to Hong Kong and Switzerland.
Not only have gold bullion exports hit new records during Jan-Sept, they have already surpassed the total for 2012.  If we look at the chart below, we can clearly see who has received most of the gold.
2013 Top 3 US Gold Bullion Exports new
In the first nine months of 2013, Hong Kong received 176.3 mt (metric tons), Switzerland 130.9 mt and the United Kingdom 26 mt.  Of the 416 mt of U.S. gold bullion exports Jan-Sept, these three countries received 342 mt or 82% of the total.
Why is this such a big deal?  Because in the first nine months of 2012, total U.S. gold bullion exports were only 283 mt compared to the 416 mt so far this year.  Which means the United States has exported 47% more gold bullion at an additional 133 mt compared to the same period last year.
Furthermore, total U.S. gold bullion exports in 2012 were only 371 mt compared to the 416 mt in the first nine months of 2013.
As the price of gold started to decline in March of this year, including the huge take-down in April, U.S. gold bullion exports picked up significantly:
US Total Gold Bullion Exports
The number of gold bullion exports increased from 40.1 mt in Jan to 62.1 mt in April.  Then we can see they fell in May (38.1 mt) and June (40.7 mt) as the gold buyers were waiting to see if prices would stop falling.  And in June, the price of gold finally bottomed right below $1,200 level.
What is interesting to see here is that there were a higher amount of gold bullion exports in July (64.4 mt) than in April (62.1 mt)
As the price started to rise in July, gold exports to Hong Kong & Switzerland picked up substantially.  The table below details which countries were the recipients of U.S. gold bullion exports.
2013 U.S. Gold Bullion Exports Table
Not only did Hong Kong increase its gold bullion imports from the U.S. in July to 27.9 mt up from 15.5 mt in June, but it jumped even higher in August when it reached a 30.7 mt — a record month for the year.
According to the data from the USGS Gold Mineral Industry Surveys for Jan-Sept 2013, Hong Kong has received a total of 176.3 mt and Switzerland 130.9 mt.  The United Kingdom came in third at 26 mt while Thailand came in fourth at 21. mt, followed by South Africa at 19.5 mt, Canada at 15.3 mt, China at 11 mt and India at 2.7 mt.
There was an additional 13.5 mt that went to several misc. countries in which the United Arab Emirates received the greater share.
Now, I want to make something clear here.  These figures only represent “Gold Bullion” exported out of the United States.  There are also two other categories that come under the heading of gold exports beside manufacturing and scrap supply.  We also have the following:
JAN-SEPT Gold Exports:
Ores & Concentrates = 5.1 metric tons
Dore’ & Precipitates = 152 metric tons
If we add up all the three categories of  U.S. gold exports we have total of 573 metric tons for the first nine months of 2013.  This turns out to be a significant trend when we factor in several other figures.
As U.S. gold exports increased in 2012, its imports have fallen considerably.  The chart below shows the change in U.S. net gold supply:
U.S. Gold Net Supply NEW
The chart is broken down into four components;  Mine Production, Gold Imports, Gold Exports and Net Supply.  There is no real change in U.S. gold mine supply, but we can certainly see that gold imports have fallen off dramatically since 2011.
U.S. gold imports fell to 332 metric tons in 2012 down from 507 metric tons in 2011.  I would imagine overall gold imports in 2013 will be about the same as they were in 2012 when we receive the remaining four months of data from the USGS.
However, the big change here is the large increase of U.S. gold exports.  Total gold exports out of the U.S. increased from 474 mt in 2011 to 693 mt in 2012.  Currently, the United States has exported 573 mt, 45 mt more than the same period last year.
Compiling all the figures  for the past three years (including only Jan-Sept 2013), the United States has a negative 171 mt of net gold supply so far in 2013.  Basically, this means that the U.S. has exported 171 mt more gold than it has produced from its mining sector and imports combined.
In 2011, the U.S. had a positive net supply of 265 mt, but due to high demand for gold abroad this fell in 2012 to a negative 127 mt.  And as you can see, U.S. net gold supply continues to decline — a negative 298 mt since the beginning of 2012.
It will be interesting to see what takes place for the remainder of the year.  If we consider that Hong Kong had record gold imports in October, I would imagine the U.S. supplied a good portion of this amount.
Lastly, when we realize that the majority of U.S. gold exports to Switzerland and the U.K. are probably making their way to the East…. we can assume that the overwhelming majority of the gold leaving the shores of the United States is most certainly ending up in China.

Gold Vault Opens in China as Bullion Goes From West to East

A gold vault that can store 2,000 metric tons, double China’s projected consumption this year, opened in Shanghai this month as owner Malca-Amit Global Ltd. seeks to benefit from rising demand in Asia’s largest economy.
The facility is the biggest for the Hong Kong-based company, and it can also store diamonds, jewelry and art, Joshua Rotbart, precious metals general manager, said in an interview. The site could hold bullion worth about $82.5 billion at today’s price, Bloomberg calculations show. China’s total demand may reach 1,000 tons in 2013, the World Gold Council forecasts.
Consumption in China may increase 29 percent to a record this year, overtaking India as biggest user as lower prices and higher incomes spur demand, according to the WGC. The investment in Shanghai’s new free-trade zone reflects a shift in world demand away from the U.S. and Europetoward Asia. Demand for gold jewelry, bars and coins in Greater China, India, Indonesia andVietnam is now about 60 percent of the global total, up from 35 percent in 2004, according to HSBC Holdings Plc.

Click Below To See A video Of The Vault On Bloomberg

Russian Banks Buy 181.4 Tons Of Gold In 2013

With headlines crowing of gold's worst year since 1981 as a signal that the status quo is winning and proof positive that fiat-currency naysayers must be wrong, it would appear that the rest of the world's central banks (and banks) have used the price depreciation to stack the precious metal. As Bloomberg reports,
This 5.834 million ounce addition (8.3% YoY) is more than double that of Russia's central bank additions in 2013 with Bitcoin-favoring Sberbank piling up 48.5 tons alone in 2013.

Russia's central bank added 2.485 million ounces to November - so the bank additions are very large...

Biggest buyers according to Finance Ministry include Sberbank (48.5 tons), VTB (38.9 tons), Gazprombank (29.1 tons), Nomos Bank (19.6 tons), Lanta Bank (8.6 tons).
So, like China, we are sure Russia will be sending a big "Thank You" to the Fed (and BIS) for their efforts.


Friday the numbers were released on total Chinese gold demand for 2013. Total demand can be measuredby 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 brings the yearly total to 2181 tonsYes, total Chinese demand for 2013 was 2181 tons, excluding PBOC purchases. All my sources in the mainland state the PBOC would never buy its gold through the SGE, so total demand including PBOC purchases may have reached well over 2500 tons.  Which would imply total net import was 2000 tons.

There are some really Interesting Graphs In This Article

Click Here To

Gold is no longer a safe investment! (This Is Comical)

The crash in gold prices was one of the biggest shockers of 2013. A correction had already begun at the fag end of 2012, but prices really crashed in 2013, triggered by fears that the US Federal Reserve would scale down and do away with the economic stimulus.

Click Here To Read More At The Times Of India

Friday, January 10, 2014

Turkey’s gold imports hit record in 2013 (Up 150% from 2012)

Turkey’s gold imports jumped to their highest annual level on record in 2013 due to a considerable drop in market prices as well as the country’s ongoing gold-for-gas trade with Iran. Turkey imported 302.3 tons of gold through the 12 months of the year, data from Borsa Istanbul showed, recording a 150 percent rise from the previous year’s level of 120.78 tons.

Click Here To

Tuesday, January 7, 2014

Yellen Has No Clue How to Run Fed: David Stockman

Long gold, short China is the winning trade so far this year

If you have been wondering what all those old Chinese aunties buying gold were telling us last year then this is it: go long gold and short China. So far in 2014 that has been the winning trade. Gold is sharply up, shares in Shanghai are tumbling.
Actually the Shanghai Composite Index is 60 per cent off its high and has been falling for several years. Gold took a break from its 13-year bull market last year but remains in an uptrend. However, both markets could be set for strong movements this year, albeit in opposite directions.

Thursday, January 2, 2014

Avoid gold: The last correction took 20 years!!!

After gaining more than 700% in the decade following the 9/11 Terrorists attacks, Gold (GLD) has since fallen about 40% from the all time high it hit 15 months ago, with most of that happening in 2013. In fact, the last 12 months have been the second most bruising period for the metal in over a century, bested only by the 32% slump of 1981.

This type of decline is not only rare, but tempting, as many bottom-fishing investors are starting see value in gold, although David Nelson, chief strategist at Belpointe Advisors is not one of them.

“I can’t find a lot of reasons to like gold,” Nelson says in the attached video, citing three reasons for his continued caution.

Click Here To See The Video: Yahoo Video

Gold Restrictions Fuel A Black Market For Gold In India!

Wednesday, January 1, 2014

IRS data shows 50 percent of households make less than $35,000 per year. Top 10 percent pay 68 percent of income taxes.


A major theme throughout 2013 revolved around a booming stock market and real estate sector.  Alongside this theme however was also the one of growing income inequality.  The stock market generated one of its best years but only a small portion of the population benefited since most Americans do not own stocks outright.  The real estate boom was largely driven by big money investors leveraging the unprecedented Quantitative Easing machinery from the Federal Reserve.  Yet most households have little access to this debt since deleveraging is still occurring for households.  The only consumer debt sectors to boom in 2013 came from student loans and auto loans. Not exactly two sectors to build up your wealth portfolio.  We see how the great income divide is splitting the nation even when it comes to paying income taxes.  The adjusted gross income for half of households in the US is less than $35,000.  This group pays 11.55 percent of all income taxes.  The top 10 percent pay 68 percent of all income taxes.  This is an expected trend when wealth inequality is at levels last seen in the Gilded Age.

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Gold: Declining Prices Versus Skyrocketing Demand!!

This is the reality in the Gold market that the average person has no knowledge of. They see the price dropping and think that the demand must be low!