Chinese Call for International Silver Market Reform

We begin with an update from China where silver bullion demand for industrial inputs and jewelry demand is outpacing diminishing silver bullion supply levels. 

How is their state run media covering this ongoing, underreported story?

This week it was announced that one of China's largest banks, the China Construction Bank is increasing its global capacity to service its local and global client base in precious metals and bulk commodity trading. 

Meanwhile early this week, there was an open article written in China Bai news calling for international silver market reform. Explicitly citing the ridiculous outsized paper derivative leverage used by the COMEX and City of London's LBMA markets in order to keep gold and especially silver values at still suppressed price levels.

The author cuts to the chase regarding diminishing silver bullion supplies stating the following.

Two weeks ago on this SD Bullion youtube channel, we showed you the record sized silver bullion withdrawal that the author was referring to at the end of his plea for higher silver values for future civilization's industrial development.

Certainly every industry Elon Musk is involved in will require more and more industrial silver moving ahead.

Moving on to the gold side of the China market.

The left hand annual price chart is the local fiat yuan gold price throughout this full currency era. You can see it is on the cusp of a major breakout soon enough.

Yet the local fiat yuan silver price remains depressed while outsized western derivative markets try to contain a polite silver spot price while they can manage to do so.

This week the People's Bank of China updated the world that it bought more Official Gold Bullion in May 2023.

That is now seven months in a row of official additions to their gold reserves. Admitting to having added over 144 metric tonnes of gold bullion since October of last year 2022.

There is a long litany of reasons for central banks and investors to be adding to their prudent gold bullion reserves before the next major move upwards in global fiat currency denominated spot prices. A few of them are provided here by Tavi Costa.

After this short break we're going to dig in a few major news events from this past week illustrating further that ultimately gold is going to be the best safe haven through coming structural world trade transitions. Proving itself to be the likely best store of value for those prudently buying and allocating now before the coming inevitable mania ahead.

As a predictable open attack on 'Private Digital Tokens' and some exchanges that allegedly wash trade, many of them have kicked into high gear.

The silver and gold spot price markets moved slightly higher this week in fiat US dollar terms.

The spot silver price closed the week around $24.30 oz bid, while the spot gold price closed at $1,960 oz bid.

With gold not leading silver yet, the spot gold silver ratio fell to 80 to finish the week.

The SEC and its Chairman Gary Gensler made major headlines this week as they filed multiple lawsuits against two of the largest exchanges in the world's crypto currency markets (source).

Genlser openly colored current crypto currency markets as seemingly lawless price discovery markets of the unregulated 1920s in the USA.

Of course, Gary is the guy who also once headed the CFTC in its failed 2010 investigation on precious metals market manipulations. Not finding that back then JP Morgan and a handful of other major commercial banks were consistently rigging precious metals price discovery markets and would go on to do so for many years that followed his failed tenure at the CFTC.

Here is how the Wall Street Journal covered this week's major crypto currency lawsuit story.

Maybe artificially high wash traded and sucker-inducing exchanges propping price points are one major reason why central banks have not bothered with Bitcoin to date and instead have been buying gold bullion in record size that last year plus.

It's gonna be interesting to watch how the crypto markets perform if indeed a large portion of their prices are indeed as fraudulently propped up as the SEC is alluding they are.

Personally, like central banks, I'm sticking with bullion.

That will be all for this week's SD Bullion Market Update.

As always take great care of yourselves and those you love.

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James Anderson
James Anderson
Senior Market Analyst & Content

A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.

Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades...