Author Topic: Stunning Images From China 10,000 People Waiting In Line To Buy Gold - June 11th  (Read 3656 times)

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Offline exchange

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Sometimes one must see to believe, in this case believe just how massive the raw demand for the shiny, barbarous relic is in China during times of relative monetary stability (in this case the Dragon Boat Festival). Now assume runaway inflation as we saw in 2011 China, which may be unleashed by something as catalytic as the PBOC once again deciding to inject liquidity in its suffocating banking system and to revive growth in the stalling economy.
June 11, ten thousand people line up in front of a gold shop to buy gold. The buyers lined up during the three day Dragon Boat Festival.

http://www.zerohedge.com/news/2013-06-14/stunning-images-china-ten-thousand-people-waiting-line-buy-gold


On a side note, I wonder what my 2002 dragon boat festival silver coin is going for these days!
http://china-mint.info/forum/index.php?topic=1115.msg34315#msg34315


exchange

Offline Birdman

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Offline Bearcat

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There must be something more to this story...there are many gold shops, and the metal is readily available in many forms.

Offline Panda Halves

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There must be something more to this story...there are many gold shops, and the metal is readily available in many forms.

Festival time?
Perhaps they had a public toilet in the back.  :001_rolleyes:

Offline SANDAC

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According to tfmetalsreport.com, it is "A crowd of customers waits in front of a gold store to shop during a promotion, in Jinan city, East China’s Shandong province on June 11, 2013....  People crowding around a gold products counter jockey for position to pick up something in a gold store which sold its products at a price of 299 yuan per gram in a promotion – about 50 to 70 yuan lower than the normal level, in Jinan city, East China's Shandong province on June 11, 2013. The promotion attracted nearly 10,000 people who rushed to the store despite restricting each customer's shopping time to 15 minutes."

http://www.tfmetalsreport.com/blog/4779/considering-chinese-demand

Offline dragonfan

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Hi exchange, well done! However, I don't know how the 2002 silver Dragon boat festival is doing? Anyway, a beautiful coin, :)

Offline pandamonium

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One photo was on jsminest today too.  The evidence for MCC and bullion was in articles over 2 yrs ago and that is one reason I got into this market.  Told many but only a few jumped into MCC w/ me.  Many others are buying now too.  Pretty obvious that the bidding war for MCC will start in ernest at some time in the future.  The sale price for this event drew a large crowd.  At some point the herd will get the picture and photos like this will be in most countries as the masses will be desperate to buy bullion world wide......

Offline Hippanda

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I dont see the masses ever becoming desperate to buy bullion.

Food, yes.  Bullion, no: by the time the "herd" sees it, its always too late. The masses will have nothing left to buy it with.

Actually the masses with the most disposable wealth, in the USA, have been been doing the reverse and selling their coins, jewelry and precious metals to the "We Buy Gold" outfits and "Jewelry 4 Cash home cocktail parties" now for some time, to pay their bills.  It's never the masses- all the Kim Thanh gold leaf made it to the US sewn in the bags of wealthier refugees.  The poor masses had to stay, and were more worried about where their next meal would come from.  So its always been, and, sadly, so it will always be.
"He who speaks without modesty will find it difficult to make his words good."

Confucius

Offline dragonfan

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Never underestimate a herd..Perhaps they had a public toilet in the back, globally speaking, of course.

Offline Hippanda

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..  People crowding around a gold products counter jockey for position to pick up something in a gold store which sold its products at a price of 299 yuan per gram in a promotion – about 50 to 70 yuan lower than the normal price level...

Its unlikely that the store is selling BULLION at 20% off, unless there's a catch. Maybe from marked-up levels.

I DO recall the days when in the local mall's jewelry store, a "sale" of 20% off gold jewelry, customers used to similarly flood the store to buy the still over-priced trinkets.
Stores would hike mark-ups hundreds of percent, never expecting to sell except on the "sale days" when they would lower the markup slightly to still obscene levels.  The herd then bought because, well, they are a herd, but also because they had more disposable income then and gold was bling.  Now, with overindebtedness, layoffs, furloughs, inflation, small business failures, increasing taxes, home value collapse, many in the West (Europe, the US and South America) no longer have the wealth to spend on wealth preservation like The East does with their more frugal lifestyles and their nature of self-reliance..

Pole: are Walmartians buying, or selling bling?
How do you see that ever changing with all the social safety nets in place?  They will never buy PMs as long as the govt gives them food , shelter, and booze, and they can use their declining allowances to buy entertainment.

No, the frantic buying of PMs, if it is allowed, will come from the small number of outliers with wealth they are gambling to preserve.  And even then, all it'd take to squash it like a bug would be 90% taxes on sale, and restrictions with criminal penalties on transport / mailing.
"He who speaks without modesty will find it difficult to make his words good."

Confucius

Offline SANDAC

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The gold store is not losing money.  At $1400/troy oz (31.1gram) that's 276 yuan per gram.  They are charging 299 yuan, 7.7% over spot, which is 50-70 yuan lower than the normal (27% to 34% preminum).  A 7.7% premium over spot draws that kind of crowd is pretty amazing.

Offline Hippanda

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The bigger question to ask, regarding the sustainability of increasing Precious metals pricess:

Are the new buyers "Strong Hands" or "Weak Hands"?

If they are the masses, spending their last bits of wealth, how quick will they be to liquidate at lower prices upon need of basic necessities? And what is the resulting direction of price, when high numbers of weak-hand sellers scramble over themselves to sell for basic necessities?

Counting on the masses always has its problems....
"He who speaks without modesty will find it difficult to make his words good."

Confucius

Offline pandamonium

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10,000 buyers of metals is large.  Will we see photos of 100,000 buyers?  How about 1 million?  The wealthy in the West are encouraging the herd to sell metals so only a few will own most.  The East wants all their people to own metals so their countries have wealth.  The gig is up in Europe so they have turned to metals.  Bullion supply is a finite number.  It takes time to get more out of the ground and mint it.  We all know supply is low and demand is high.  Will paper money buy food in the future?  Maybe.  PM will buy what we need as the sellers will cater to those that have bullion to trade instead of paper.  PM will have buying power.  I email many online authors of articles.  Here is a response to my long winded question by one of them.  Most online authors have the same opinion.  It is all very bullish for MCC.......


From: Hoffman, Andy
Sent: Friday, June 14, 2013 7:02 AM


Mike,

 

Not sure why you're asking "do I really believe the yuan will collapse before the dollar."  I never said that; and in fact, with all the world's gold, it is impossible.  The dollar is the reserve currency for now, but the Yuan will be next - AFTER the global collapse; which could be a long process.  When the system goes (yen, dollars, etc), all economies will suffer - China included.  But the Yuan will survive, due to the gold collected by the government - so long as they create a new gold-backed yuan.

 

a

 

Andrew C. ("Ranting Andy") Hoffman, CFA

Marketing Director

Miles Franklin Ltd.

Direct        720-350-4130

Toll-Free  800-822-8080

ahoffman@milesfranklin.com

www.milesfranklin.com

 

 

Hi ranting Andy:   Since about 2006 or 07, I have been telling people to get out of the US dollar and into precious metals.  Collapse of the US dollar will happen as will other world currencies so I am not a newbie.   Do you really believe the China Yuan will collapse before the US dollar?  Isn't the Yuan safer than the US dollar?  I collect Modern Chinese Coins or MCC, 1979 to present.  The premium on them is very high.  $100 oz silver is the starting point for MCC.  Paying $1,000 for rare silver MCC is typical.  1/5th of China can now afford to buy gold/silver.  1/5th of China is equal to the entire US population so that is a lot of new buyers that came online in 2003 when China legalized the ownership of precious metals.  The mintages are tiny compared to 5 or 6 figures $ paid for US rare coins w/ higher mintages.  So MCC still have a large upside.   Bullion will be king but rare coins are the best of bullion.  I also own junk silver in case the post offices close and I cannot mail my MCC to Chinese buyers.  MCC have a world wide cult following and even Australia voted the Silver Panda MCC as their favorite silver to collect as is the opinion of other World coin collectors.  Chinese Coin Forum or CCF has a new collector tab.  Live Business Chat or LBC, click to recent investment list # 187?   Page 1 has tons of information on MCC.  When will the collapse of the Chinese Yuan happen in your opinon?  They Yuan is now being backed by physical gold and the US dollar is not.  When the Japanese Yen collapses (no brainer) how will that affect the Chinese Yuan?  Which precious metals do you believe I should collect?  US bullion?  What about rare coins?  .....thank you.....

Offline pandamonium

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There seems to be some confusion so let me clear it up.  Why 1 million gold/silver buyers in line?  1/5th of China's population can afford to buy metals.  1/5th of the population is about 300 million people.  1/300th is 1 million buyers..........

Offline comeaux

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After recently returning home from vacation I had to do some digging to find the most recent topics, I preferred the old way whereas more of the “recent posts” where listed on the homepage, it seems the "recent posts" list is much shorter now and topics tend to disappear into obscurity rather quickly.

Anyway … I came across this story

There must be something more to this story...there are many gold shops, and the metal is readily available in many forms.

Agreed bearcat there seems to be more to this story … 10,000 people are not “herding” to simply buy gold, it’s too readily available.


I dont see the masses ever becoming desperate to buy bullion.

Food, yes.  Bullion, no

 :001_smile: Interesting posts in this thread hippanda (and always entertaining) and I’m with you … the “masses” will never be desperate for precious metals (MCC or any other numismatics). Food is a whole other story … if or when the SHTF does occur then you will see the “herds” clamoring for food which at that time, along with water will be the primary things with intrinsic value.