Big News Breaking About Chinese Gold Demand

Big news broke last Friday morning by Peter Hobson and others writing an exclusive report for Reuters on revamping Chinese gold demand this April and May 2021.

Headlines read, "China renews appetite for gold with US$8.5 billion set to arrive as central bank relaxes quotas."

China’s appetite for gold jewelry, bars, and coins has recovered as the economy rebounded in recent months.

Around 150 tonnes of gold bullion are to be shipped by next month, May 2021, five sources confirm (currently worth US$8.5 billion at today's gold spot price).

On behalf of SDBullion.com, this is James Anderson bringing you this week's SD Bullion market update in video format above.

We had very fundamentally bullish bullion news this past week, have a look.

The gold spot price and silver spot price both had intense weeks in trading.

Let's see next week if gold can clear $1800 oz for gold, and the two precious metals can begin their inevitable climb out of the 7-8 month consolidations they have made since early August 2020 record gold price highs.

The gold silver ratio tightened down at 68 to close the week.

This week the London Bullion Market Association, or LBMA for short, published what is likely their first-ever sole focused report on silver investment demand.

Metals Focus most likely wrote the reportThe report was most likely written by Metals Focus, a precious metals consultancy based in London, which often also authors the Silver Institute’s annual World Silver Survey, which is regularly published.

This fifteen-page report appears to attempt to gain back some control over much of the ongoing silver squeeze narratives online.

Thus far, in 2021, silver investment demand remains at high levels considering the now nearly last five decades of this entire fiat currency era ongoing.

I will highlight a few notes from my read of this, at times, London silver squeeze confessional.

Watch the video and market update embedded above, do not skip it.

To conclude this SD Bullion post, the east is fully returning to the gold market; it’s only a matter of time before that bleeds over acutely into increased eastern silver bullion demand too.

London appears wholly unprepared for what is building.

Perhaps the one thing that will save them is rapidly rising spot prices in fiat currency terms.

Judge by where the Trade Weighted fiat Federal Reserve note Index is, versus all other fiat currencies based on trade weightings. It looks very similar to the gold silver ratio chart we looked at earlier in this update

There is also a long way to fall lower before we get back and likely beyond the 2011 low levels (see FRED chart).

Get long and be well-positioned silver and gold bullion before it becomes super apparent to those still distracted by persistent bubbles outside the bullion markets.

Bubble bagholders will be the ones who pay you handsomely for doing so later and at way higher valuation levels.

That's it for this week's 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...