: Value Investing Forum - Singapore, Hong Kong, U.S.

Full Version: Is Gold considered as investment or insurance?
You're currently viewing a stripped down version of our content. View the full version with proper formatting.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
5 Big Lies About Precious Metals Investing Exposed

Lie #1: Gold Isn’t Money

Neither brokers, bankers, nor central bankers particularly want the investing public to view precious metals as a core holding. They prefer we think of gold as a “barbarous relic” of the past that no longer serves as money.

In an infamous exchange in 2011 between then Federal Reserve Chairman Ben Bernanke and pro-gold Congressman Ron Paul, Bernanke stated flatly that gold is “not money.”  This is the big lie of fiat money pushers and their ideological allies.

It flies not only in the face of history, but also of the fact that central bankers themselves continue to hold and accumulate gold as monetary reserves.  In 2018, central banks around the world, led by Russia and China, added hundreds of tons of gold to their reserves.  In the first quarter of 2019, Russia boosted its pace of gold buying by a whopping 68%.

Lie #2: Silver Isn’t Money
Lie #3: Precious Metals Are Too Risky for the Typical Investor
Lie #4: Cryptocurrency Is More Valuable Than Hard Currency
Lie #5: “Collectible” Coins Are Better Investments than Bullion Coins
Still Firing on all Cylinders: China’s Physical Gold Market

While headlines may be on the Sino-US trade war, China’s gold market continues to fire on all cylinders, with physical gold continuing to flow into, and through, the world’s largest gold hub.

Year-to-date, Chinese wholesale gold demand is on a par with recent years, Chinese central bank gold purchases have officially recommenced after a two year halt, and gold import data into China is now more transparent than ever before.

Shanghai Gold Exchange (SGE) Withdrawals

In China, the critical trading hub for the Chinese gold market is the Shanghai Gold Exchange (SGE). Practically all physical gold supply flows through the SGE, and on the flip side, nearly all Chinese physical gold demand is met by physical gold withdrawals from the SGE’s nationwide storage vaults. Therefore, physical gold withdrawals from the Shanghai Gold Exchange is the best proxy available for Chinese wholesale gold demand.

Based on this proxy, Chinese gold demand this year is as strong as ever.  

[Image: SGEWithdrawalsApril2019-768x588.png]

Gold Imports – Lifting the Veil

Having recorded 2055 tonnes of SGE gold withdrawals in 2018 – i.e. roughly the same as Chinese wholesale gold demand in 2018 – China has to make up the shortfall beyond domestic gold production by importing vast quantities of gold bars, literally in the 1500 tonnes range.

Previously there was some guesswork in how much gold China imported due to the fact that China’s customs authority did not publish this data. This meant that estimates of China’s gold imports had to be derived by piecing together other countries’ gold export data to China, such as gold exports from Switzerland, Hong Kong, the UK and Australia to China.

While that indirect or mirroring method was quite accurate, it didn’t tell the full story.  So it was revealing to see that China has recently begun publishing gold import data in its official trade statistics, an interesting summary of which has been put together by Matt Turner of Macquarie and can be read here.  Notably, this new customs data also includes Chinese gold import figures for 2017 and 2018.

For 2017, China imported a massive 1270 tonnes of gold, while in 2018 it imported an even larger 1506 tonnes of gold (which is more than half of rest of the world’s global annual gold mining output). The new gold import data also interestingly shows the original source countries of the gold bars that China has been importing, not merely the countries that the gold bars last arrived from, such as from Hong Kong. So now we know officially that a lot more gold goes into China from countries such as South Africa and Australia than could previously be fathomed.

In 2018, China imported over 650 tonnes of gold from Switzerland, about 250 tonnes from Australia, 200 tonnes from South Africa, over 100 tonnes from Canada, and nearly 100 tonnes from the US. Other notable import sources included Singapore and Hong Kong. See chart below from Turner’s article.

PBoC Gold Reserves – From one side of the Vault to the Other?

But its not only the private sector which imports gold bars into China. China’s central bank, the Peoples Bank of China (PboC), imports gold bars too. However, in the case of the PBoC, like all central banks, the gold that it imports is classified as monetary gold, and is exempt from cross border trade statistics.

We also know that the PBoC buys its gold on the international market, for example in London, and flies it back to Beijing. But this gold will never show up in any trade statistics as central banks want 100% secrecy around anything to do with gold transactions.

[Image: Est.-Total-Chinese-Gold-Reserves-to-2018...68x521.png]
So, China are trying to guard against what is coming with a new, golden 'Great Wall'. Makes sense. Only trouble is that the ground under the wall is so riddled with corruption and bad governance it may undermine it. Still:

Over at the FED/US economy it is like the coach in SPEED. They are going flat out with no brakes, and can only keep swerving around the next obstacle, but knowing that sooner or later either the bus will blow up or they will hit a brick wall. Meanwhile the frat boys of Wall St are having a full on party on the back seats - they know it can't go on like this, but who wants to miss a good party?

Over in the EU, the wheels have come off the bus. The German made engine still works, but someone has nicked the tyres. It does not matter what control they press, nothing happens.

Folks, we are in the sequel to 2007, but much, much scarier.

My plan:

Have a few drinks while everyone is in a party mood. But don't get too drunk.

When the party starts looking like an Animal House orgy, sober up fast, head back to my Singapore bomb shelter (solid, real economy, solid currency, decent governance), dig in and seriously load elephant gun

Pick off the survivors as they reel from the wreckage, and salt away ready for the start of a bright new world/next upswing.
Gold prices ease after earlier spike above $1,400 per ounce to prices not seen in nearly 6 years
* As of 2:54 p.m. HK/SIN, spot gold rose 0.42% to about $1,393.66 per ounce. Earlier during Asian trading hours, gold prices soared past the $1,400 level for the first time since September 2013.
* Gold prices surged a day earlier, after the U.S. Federal Reserve indicated there would be a possible rate cut in the future.

Eustance Huang

Gold prices gained for a second day in a row on Friday, touching levels not seen in almost 6 years.

Earlier during Asian trading hours, gold prices soared past the $1,400 level for the first time since September 2013. Those gains were pared later. As of 2:54 p.m. HK/SIN, spot gold rose 0.42% to about $1,393.66 per ounce. Gold futures also rose fractionally to $1,397.60 per ounce.

Gold prices surged a day earlier, after the U.S. Federal Reserve opened the door for a possible rate cut in the future, sending the yield on the benchmark 10-year Treasury note below 2% — a key psychological level — for the first time since November 2016.

The U.S. dollar index, which tracks the greenback against a basket of currencies, was at 96.687 after touching levels above 97.6 earlier in the week.

“The negative correlation between the gold price and US Dollar has driven investors into gold ahead of any weakness in the US Dollar,” David Lennox, resource analyst at Fat Prophets, told CNBC in an email.

“As rates fall the US dollar will likely weaken as well,” he said, adding that the weakness in the greenback “could be amplified” by any return to easing policies. Furthermore, the heightened geopolitical landscape has given the safe haven premium in gold price a boost, he added.

With gold having already hit the firm’s end year target range of between $1,375 and $1,400 per ounce, Lennox said there “will be a pullback.”

More details in
About time to listen to wife to sell her disfavored gold jewelries

Target about 65 k per kg in Sing dollars to start to sell.

Now is 61k per kg?

Will not reach 65 k per kg?

Then maybe next round of leave behind lol.


By the way anyone knows the best place to sell?
DGX is a digital token backed by 99.99% gold cast bars from London Bullion Market Association-approved refiners. Built on the Ethereum blockchain, DGX is the digital representation of physical gold.

Our gold bullion provider, ValueMax, is one of Singapore's oldest and best-established pawnbroking chains. Established in 1988, they provide pawnbroking services, and retail and trading of pre-owned jewelrey, LBMA gold bullion and luxury timepieces.

Our custodian vault is The Safe House Singapore, a subsidiary of Silver Bullion. It provides comprehensive and competitive solutions for corporations and high-net worth individuals looking to purchase, transport, and store precious metails. As mentioned on their website, The Safe House is ISO 9001 certified, 800 sq feet, state of the art vault which can hold over 600 metric tons of silver and 30 tons of gold and platinum.

Our precious metal auditor is Inspectorate at Bureau Veritas, a renowed world leader in testing, inspection and certification services. As mentioned on their website, they have expert testing and inspection services across range of industries in the commodities space.

Silver Bullion Pte Ltd provides segregated ownership of gold and silver. They focus on minimizing storage, counterparty and jurisdictional risks in a manner that traditional financial institutions cannot. Silver Bullion is also a member of the Singapore Bullion Market Association (SBMA) and was ranked the 33rd most entrepreneurial privately owned company in Singapore by KPMG and The Business Times (E50).

@ Temperament,
this was for you.
You promised you wife to sell her disfavoured jewelries.
You didn't promised her what to do with the proceeds

As you aren't selling bullions but jewelries, maybe the best place to sell is some juweller?
As the value of juwelries is higher of the value of the bare metal they consist of, it wouldn't make any sense to go for a bullion dealer.
An auction house?
Maybe I am being paranoid. In Singapore, I only trust UOB for Gold. in Malaysia, I only trust MayBank for Gold.
Well, that's me!
Hi Luke,

By the marriage vows if taken word for word, there is no need to say more unless he/she is one of the kinds.

Sell at jeweler's shops?

Do U mean pawnbroking chains like ValueMax?

i think only if the piece still popular or antique. pcs.

Maybe the best price is at "BULLION STAR" as scrap gold.
(07-07-2019, 02:12 PM)Temperament Wrote: [ -> ]Sell at jeweler's shops?
Do U mean pawnbroking chains like ValueMax?
No, I mean jeweller shop
Don't go to the jeweller at the corner, the one with two employees and a 25 square meters exposition room.
Make a tour to the big ones.

Phone before you go and ask if they buy from privates.
If it's the case, ask for a meeting with someone competent and enabled to take decisions.

Don't hand over your goods and let her/him bring them in the backroom for analysing purposes, without your supervision.
Bring someone with you, as a potential witness. You never know.

Before the meeting, make some research in www and get an idea about the value of your goods.
Visit multiple jewellers, not just one.

Don't hand over your goods and let him/her bring them in the backroom without your supervision.
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28