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China reduces 2012 silver exports by 5%

Discussion in 'General Discussion' started by workhorse, Nov 15, 2011.

  1. workhorse

    workhorse Monkey+

    MUMBAI - -
    Silver exports from China, the world's largest, are expected to drop this year as domestic demand from investors is expected to surge. And, in a market that has seen significant price volatility, these reduced exports could bolster prices of the white metal, say analysts. On Monday, December silver lost 65.8 cents to close at $34.024 an ounce in New York. The metal has advanced 10% this year.
    According to a statement from China's ministry of commerce, the 2012 export quotas for silver from the Asian country have also been reduced by 5%. This amounts to a cut of 283 tonnes in its 2012 silver export quotas from 5,670 tonnes in 2011.
    Roughly 70% of China's silver demand comes from the industrial sector. Analysts say shipments are also set to decline with customs data showing a drop in exports. Chinese customs data showed export growth falling more than expected in September, while import growth also declined.
    Silver imports into China fell by 39% year on year and 16% month on month to 264.7 tonnes in September, the lowest level since February. Silver exports too declined by 44% year on year to 83.5 tonnes, keeping China a net importer of the metal for two consecutive years on a monthly basis, data showed.
    Moreover, China's third-quarter gross domestic product was up 9.1% from a year ago, slowing from 9.5% growth in the second quarter and 9.7% growth in the first, according to China's National Bureau of Statistics. This marked the slowest pace since the third quarter of 2009.
    "Silver prices have been volatile of late. Like rare earths, China is also cutting exports of silver. Less exports mean tighter markets everywhere else,'' said Sonamull Shah, bullion retailer. He added that a strengthening US economy had pushed the dollar up and taken away the white metal's safe haven appeal.

    "With the commerce ministry in China restricting silver exports, it would create a highly volatile situation in the global market,'' said Manikbhai Shah, silver retailer in Mumbai.
    China, the biggest emerging market user, is said to be expanding at more than five times the speed of the US, driving consumption of the precious metal most used in the industry. Analysts say demand is also coming from investors looking for an alternative to cash and gold, which costs about 50 times more than silver.
    Gold for December delivery fell $9.70, or less than 1%, to settle at $1,788.40 per ounce on Monday on the Comex in New York. Gold futures too declined for the third time in four sessions. Last week, the yellow metal had gained 1.8%, the third straight increase. Rest of article at Mineweb.com - The world's premier mining and mining investment website China reduces 2012 silver exports by 5%, could boost prices - SILVER NEWS | Mineweb
  2. pmbug

    pmbug Golden Cockroach

    Demand from the Chinese population is increasing and it's only going to get stronger when they open up silver trading on PAGE (Pan Asian Gold Exchange).
  3. VisuTrac

    VisuTrac Ваша мать носит военные ботинки Site Supporter+++

    Most of silver is used in manufacturing. So if there is an economic slow down, i.e. a drop in demand for Chinese electronics, there will be more available for export.
  4. fedorthedog

    fedorthedog Monkey++

    They have a lot of precious metals but hows their food supply
  5. pmbug

    pmbug Golden Cockroach

    From what I understand, that changed in 2010.
  6. Falcon15

    Falcon15 Falco Peregrinus

    OK bear with me, this will be rather involved but worth knowing. To understand China and precious metals, you must understand a culture that is literally thousands of years old. Notice, I said culture, not politics. Political systems come and go, but the basic culture is relatively unchanged.

    To understand, in this case, silver and China, you must understand first and foremost that silver has been, worldwide, currency for literally thousands of years also. Gold is the money of Kings, silver the money of gentlemen, barter the money of peasants, and debt the money of slaves. This held true and holds true to this day.

    Going back to the first real contact between China and Europeans, not the intermediary of the Silk Road (but the Silk Road plays a part in this), you find that in the late 1400's into the early to mid-1500's the discovery of the New World and the wealth it contained. The Spanish (and by default the then subject country of Portugal) jealously guarded the routes to the riches of the New World and Far east. Fernando Magellan discovers the Pass of Magellan in 1520, making stabs westward into the Pacific possible. This shortened the travel from Europe into Asia. It allowed Spanish settlements in South America, supported and driven by the Church, to expand into the exotic Far East, always driven by greed and power.

    Now, China and Japan - had contact for centuries. Each had what the other wanted, but because of a state of open hostility between the Japanese and the Chinese, trade was limited at best. The Chinese wanted silver. The Japanese wanted silks. Enter the Spanish. They made contact with both countries and arranged to become neutral intermediaries for trade, for a fee of course. Spain grew richer, as did China, and Japan.

    The use of silver ingots (taels) for currency can be traced back to 206 BC, the beginning of the Han Dynasty. Even though during the Soong Dynasty, the Chinese became the first country in known history to issue paper currency, trade was still done in silver. Paper currency fell to the wayside, only to be revisited in the Ming Dynasty from 1368 to 1450. It was discontinued due to rampant inflation.

    Now, in China, large and small trade transactions have always, since the first portion of their recorded civilization, been performed in taels of silver. The accepted Imperial Treasury Standard weight of a tael was the Kùpíng Tael - 1.27 troy ounces of silver.

    The common trash money was a copper alloy called (translated into) Copper Cash. This was the everyday currency used for gambling, minor purchases, etc. Significant and large transactions and trades were always performed in taels of silver. Always.

    Silver has represented wealth and currency for over 2000 years in China. It is only after the PRC was formed, and the ownership of gold or silver made illegal that this stopped. The PRC made it illegal for Chinese citizens to buy, own, or hold silver or gold for only 50 years. 50 years. Now, the PRC encourages the people to buy gold and silver, and they have gone precious metals crazy!

    They have a thousands of year old culture centered around wealth, power from wealth, and the accumulation of wealth that has only been suppressed for less than 60 years.

    In 1950, China had next to nothing in gold reserves. Today they rank 10th in the world. That is only the government holdings being counted, that is not counting privately held bullion.

    This year, the government banned silver from being exported… and by July, it was being promoted as an “investment” to the Chinese public on the 6 o’clock news.

    You do the math– how does that affect global demand if just 10% of Chinese begin to perceive silver as an investment?

    From what I’m seeing from the financial reports I read, the Chinese government is engaging in one of the most explosive financial marketing campaigns in history. Instead of Maoist propaganda, though, they are attempting to re-engage the Chinese public in the gold/silver markets.

    Simply put, the Chinese government is trying to trigger a national gold and silver craze…and it’s working.

    The Chinese public now has gold trading platforms on steroids.

    You can buy silver bullion or gold bars at any Chinese bank in four different sizes. Wealth management products tied to gold are skyrocketing in popularity, and the public can now instantly buy, sell, and trade gold 24 hours a day in five different forms with different eight types of services.

    Also, for the first time in history, Chinese investors can even trade gold abroad (in London) with the swipe of a “Lucky Gold” card.

    As with anything YMMV. Do your own research. Do your own due diligence, however, IMO China is rabidly encouraging and expanding governmental and public gold and silver consumption in preparation for a massive crash of the worldwide fiat systems. The handwriting on the wall is exceptionally clear. The financial world as we know it is about to implode upon itself. China will come out smelling less like poo and more like a rose, with massive precious metals backed wealth to hold onto world superpower status. Mark my words. I may be wrong. Hell, I pray fervently that I am wrong, but the signs are abundantly clear to me.

    Got preps? Pray for the best, but prepare for the worst.
  7. Falcon15

    Falcon15 Falco Peregrinus

    Good question, but moot. When the world fiat system implodes, Gold and Silver will BE the currency used to buy and/or sell oil, food, services, goods, etc. When you hold massive wealth ahead of the collapse, the collapse itself looks less threatening. Besides which, with their infrastructure taking a minor hit when fiats implode, they will be standing ready to buy food from whomever needs to sell it.

    The BRICs countries - Brazil, Russia, India, and China already have unilateral trade agreements in place. Brazil produces and exports tonnes of beef, soybeans, wood and wood products, fish, petrochemicals, steel, automobiles, aircraft, and consumer durables that account for nearly 36% of their GDP. That is just Brazil. Combine that with the exports from India and Russia, and you have demand met by supply. All China does is change their Chinese made goods into export from China to Brazil, India, and Russia, and any other country who wants cheap manufactured goods for precious metals, food, oil, or whatever.

    Losing the US import/Export market would not hurt China as badly as most folks think. The PRC has known about and been planning for the collapse of the fiat system for 50 years. Their hand may have been forced a little with the collapsing of the US and EU economies, but not by much. Right now they are playing economic games trying to buy some extra time, but it is completely a hurry up and stockpile kind of maneuver. They are not desperate, they are just really wanting to have their "larder" a little fuller, like any good prepper, they know they need more of what they have, but could muddle through if they have to.
    VisuTrac and Sapper John like this.
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