harveyorgan.blogspot.com / February 9, 2013
Good morning Ladies and Gentlemen:
Gold closed down $4.40 to $1666.00 while silver held up pretty good rising by 4 cents to $31.43. The closing access market for our two precious metals were as follows:
Early Friday morning, the boys showed up at their regular time bashing gold down. It then rose up to the comex opening where it was hit again. However silver held firm rising at one point to 20 cents above par. However it too fell when gold remained below par for the rest of the comex session. Both gold and silver are manipulated constantly by our bankers as the supply/demand relationship of these two precious metals are thrown out the window. Thus technical analysis on the trading patterns of gold and silver are really worthless.
In physical news, the Chinese announced that their production in 2013 is 403 tonnes of gold. They keep every oz of production. China announced this week that their importation of gold amounted to 835 tonnes.
Together, these two sums of gold have the following purpose:
1) is used by Chinese citizens for jewellery and for hoarding (as inflation is certainly present here)
2) for official reserves.
The last official reserves for China was issued in 2009 at 1054 tonnes. It is expected that another revising of its official reserves will be either late this year or next.
The annual production of gold for all nations was reported on last week. It totaled 2800 tonnes of which Russia’s production was 200 tonnes and now China is 403 tonnes. Both Russia and China keep all of their gold production and thus only 2197 tonnes is available to the world for jewellry and hoarding purposes.
India has imported over 800 tonnes of gold on an annual basis but produces a very tiny 2.8 tonnes of gold.
The Indian citizens appetite for gold continues to rise unabated despite opposition from the government as they are witnessing a huge current account deficit of which the gold importation had a major effect. The government is trying to raise duties and taxes trying to quell gold’s demand.