Chinese Paper Silver Gold Mkt Getting Squeezed
Chinese Banks' Paper Gold Silver Market is Winding Down
Today, a report on Twitter states that paper precious metal trading customers received a message from the Bank of China. Starting Oct. 31st, the Bank will set limits to the position of paper precious metals accounts, and customers will not be able to buy beyond the position limit but can sell existing parts.
Further down, following tweet.
The notice also apparently said that paper gold and silver transactions are to be canceled ahead. In the future, we can only buy physical gold and silver (from the Bank, apparently).
Now for context, I tell you in our intro every week, I have been in this bullion industry for over a dozen years now.
And back in 2011 and 2012, I helped set up segregated storage accounts for a client base in Asia based out of Brink's Hong Kong. I spent nearly a week there, and I called the Bank of China's supposed bullion trading desk wanting to know how robust their silver bullion coin market was for walking in and buying off the street, for instance. It was underwhelming likely due to the extra tax added on silver bullion china, which adds+17%to the silver spot and bullion product premiums.
In China and Asia, in general, there is a massive culture of owning physical gold. And in India, silver too, while they also trade derivatives in the silver and gold markets.
Well, my hunch is the Chinese megabanks are short and not positioned for if and when the silver and gold prices start climbing walls.
In other words, they are trying to get out of the massive losses they would have to take.
https://www.zerohedge.com/news/2021-10-30/chinese-paper-silver-gold-mkt-getting-squeezed
Hope you fags have been stacking