KING WORLD NEWS - BLOG
BROADCAST../../../../Broadcast/Broadcast.html../../../../Broadcast/Broadcast.htmlshapeimage_6_link_0
HOME../../../../King_World_News.html../../../../King_World_News.htmlshapeimage_13_link_0
BUSINESS../../../../Business.html../../../../Business.htmlshapeimage_14_link_0
GREEN../../../../Green.html../../../../Green.htmlshapeimage_15_link_0
HEALTH../../../../Health_1.html../../../../Health_1.htmlshapeimage_16_link_0
ENERGY../../../../Energy.html../../../../Energy.htmlshapeimage_17_link_0
SPORTS../../../../Sports.html../../../../Sports.htmlshapeimage_18_link_0
GOLD+../../../../Gold.html../../../../Gold.htmlshapeimage_21_link_0
 

Here is what Frank K. had to say along with his 3 key charts: More and more gold is flowing towards the emerging economic powers in Asia. We do not conclude this based on just anecdotal evidence, but also based on the Chinese gold imports through Hong Kong and the increasing flow of gold out of Switzerland and the United Kingdom. In April, we published a chart of the gold flows in and out of Switzerland from the first quarter of this year, based on new data published by the Swiss Customs Administration....


Continue reading the Frank K. piece below...




Advertisement


To hear which company has one of the highest grade gold deposits

in the entire world, as well as a number of other

extraordinary projects click on the logo:






The gold trade data from Switzerland is not new, but this is the first year in which the import and export figures are available for each country individually. This gave us the opportunity to perform a more detailed analysis on the Swiss gold trade.


The following graphs show the net amount of gold flowing in and out of Switzerland during the first five months of this year. The first graph shows the countries which traded the largest amount of gold in Switzerland. The negative volumes represent the amount of gold flowing out of Switzerland to the country mentioned, while the positive bars show the amount of gold countries brought to the Swiss gold vaults. These results confirm the trend we have been talking about for a while now, the flow of physical gold to Asia and the Middle-East. This gold is mainly from ‘the West’, more specifically the United States and the UK. The top five countries getting gold out of Switzerland are Hong Kong, China, India, Singapore and Saudi-Arabia. The oil-producing countries also prove to have a strong appetite for physical gold, because the metal represents a long term store of value to them (see chart below).




Gold flowing to Asia and the Middle-East


When we take the Swiss gold trade as a reference point for the gold market, we see a worldwide flow of gold towards Asia and the oil-producing countries in the Middle-East. When we combine the total trade volume between Switzerland and the rest of the world, we see a clear trend of gold moving from other continents towards the East. From January till May this year, a total volume of almost 550 tonnes of gold went from Switzerland to Asian countries. A significant volume of 33 tonnes of gold flowed from the Swiss vaults to the Middle-East region. All other countries were busy supplying Switzerland with the precious yellow metal (see chart below).




Based on these figures, we cannot trace whether there is a direct relationship between the gold flow from Switzerland to Asia and the gold flow from other countries to Switzerland. But given the fact that Switzerland is an important trading hub for gold globally, we can draw the conclusion that the flow of gold to the East is still strong.


United States


This trend is, to a certain extent, comparable with the 1950s and 1960s. After WWII the United States was very powerful and had a strong export capacity. Europe still had to recover from WWII and paid off their debts to the United States with their large gold hoards. Af the war, the U.S. managed to expand their gold reserve from 9,000 to approximately 24,000 tonnes. After peaking in 1958, the US gold hoard started dwindling again. European countries became net exporters and accumulated dollar reserves, which in turn were exchanged for physical gold. Most of this gold trade was done on paper, since the European gold was still in the vaults of the Federal Reserve. The US gold hoard was dwindling fast once it became clear the US couldn’t deliver on its promise to pay gold at a fixed exchange rate of $35 per troy ounce. In 1971, Nixon abandoned the link between the dollar and gold.


Now it looks like Asia is playing the role Europe played during the Bretton Woods system. First they accumulated dollar reserves by running a trade surplus with the US and Europe. Now they want value for their money and so they started trading paper for gold. The question is: How will this end?




IMPORTANT - KWN has many more interviews being released today.


© 2014 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.


The audio interviews with David Stockman, William Kaye, Dr. Stephen Leeb, Paul Craig Roberts, John Hathaway, Gerald Celente, Grant Williams, Andrew Maguire, Egon von Greyerz, MEP Nigel Farage and Dr. Marc Faber are available now. Other recent KWN interviews include Jim Grant and Felix Zulauf -- to listen CLICK HERE.


Eric King

KingWorldNews.com

To return to BLOG click here.


 
 
http://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.html
KWN BLOGhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/KWN_DailyWeb.htmlshapeimage_24_link_0shapeimage_24_link_1

© 2014 by King World News®. All Rights Reserved. This material may not be published, broadcast,

rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.

Subscribe to RSS
CLICK HEREhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/rss.xmlshapeimage_27_link_0shapeimage_27_link_1
KWN Blog
Archiveshttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlhttp://kingworldnews.com/kingworldnews/KWN_DailyWeb/Archive.htmlshapeimage_28_link_0shapeimage_28_link_1
http://www.kingworldnews.com/kingworldnews/Broadcast/Broadcast.html