Dubai gold trade reaches $75b in 2013

The value of gold traded through Dubai stood at $75 billion last year, representing 40 per cent of the world’s physical gold trade, according to Ahmad Bin Sulayem, Executive Chairman of the Dubai Multi Commodities Centre (DMCC).

The trade of 2,250 tonnesmarks a 73 per cent increase compared to the previous year. The value of gold traded in 2012 at the DMCC was $70 billion.

Dubai is expected to be ranked second after London in terms of gold trade, according to Pradeep Unni, head of research, strategy and trading at Richcomm Global Services.

“When establishing DMCC, His Highness Shaikh Mohammad Bin Rashid Al Maktoum, vice president and prime minister of the UAE and Ruler of Dubai, announced that in the coming years, Dubai will capture 50 per cent of the gold market,” said Bin Sulayem, who was speaking at the Dubai Precious Metals Conference 2014 in Dubai, which opened on Sunday and will run until Monday.

Established in 2002, DMCC is a free zone with over 8,300 registered companies aimed at promoting and regulating the gold industry.

The growth in gold traded through Dubai can be attributed to a number of reasons including the transparency of trade, location and rising number of tourists, says Unni.

He explained that the emirate’s imported and exported gold is pure. Also, gold jewellery stores cater to different demand segments. He pointed out that tourists, especially from India, account for the majority of gold consumption in Dubai.

“70 per cent of gold consumed in Dubai is through the tourist population,” he said.

By 2020, when Dubai is expected to attract 20 million visitors per year, he expects that gold traded through Dubai to increase further. Given the strong demand for gold, more gold jewellery stores are opening across the emirate, he said.

Meanwhile, DMCC is planning to list a spot gold contract on the DGCX in around a month, according to Bin Sulayem.

“A similar contract was listed on Nasdaq. I personally was not happy with the volumes even though there were days [when] it was [the] highest in volume.. [the contract] was dismantled,” he said.

“I follow the volume traded on DGCX, that’s what I care about the value doesn’t mean much to me,” he added.

Unni said that the gold traded will be at Dubai Gold Souk prices, adding that it will add value to trade in Dubai.

According to Bin Sulayem, Dubai has become a benchmark for maturing cities, including those in Africa.

Africa is a major source of metals including gold, silver, platinum, palladium and rhodium, which flows through Dubai and then to Europe, says Unni


Moscow exchange launches first precious metals trading


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The stock exchange is going to start trading gold and silver by the end of this year, and platinum and palladium in 2014. Trading physical metals is expected to boost liquidity in the market and attract more participants.

Russia has so far only been trading futures on gold and silver, not dealing with real metals.

Gold has been occasionally sold on the over-the-counter market and the only benchmark for price was the Central bank’s quotations, reports.  Now gold will get the market price in rubles.

“We are a gold-exporting country. We produce a large number of precious metals. However, the trade volume is still significantly lagging behind our peers. Our commodity market is not transparent,” quotes the director of the commodity market of the Moscow exchange, Mikhail Orlenko.

Spot metal trading will be based on the platform of the existing foreign exchange market. Credit institutions licensed to conduct operations with precious metals and non-banking professional brokers will be the main players on the market, Gazeta,ru quotes the presentation by the bourse.

The Moscow stock exchange plans to transport precious metals from production companies, keep them in its own stores and deliver to the buyer the next day.

The launch of trading in gold and silver on the Moscow exchange will boost liquidity on the market and attract more participants by these new financial instruments, RBC quotes Sberbank as commenting.


JP Morgan Increases SLV Holdings by 500%!


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The past few years of silver smashing has been all about letting JP Morgan extract themselves from that Silver short hot potato. That’s why the CFTC has not filed charges against them (yet) for silver manipulation. That’s why the banking cabal has sat on the price of silver this whole time. That’s why Citibank added $7.5B in OTC silver shorts. That’s why sentiment in the silver market has never been worse.
It’s all about extricating JP Morgan from the silver short position they were likely REQUIRED to take on by the US Treasury after the collapse of Bear Stearns.

So knowing what is happening it might not be surprising to you that during the 1st Quarter of 2013 JP Morgan has INCREASED their physical silver holdings in SLV for their own account by 500%!

Submitted by Bix Weir:

The numbers are clear in the reported data on SLV which must be recorded quarterly by the major institutional holders. Here’s the latest report showing JP Morgan holding 6,042,752 shares (ounces) increasing their holdings in SLV by 4,819,640 shares or 500%.

This report is cut off as of the end of the 1st quarter so when the second quarter is posted you can bet that this number has increased substantially. On a side note I’d like to point out that two other major cabal members shed massive amounts of shares in the same quarter: UBS selling (or transferring to JPM) 7,477,363 and Morgan Stanley shedding 1,186,347. Both are playing the opposite side of the trade to control the price as the cabal trades back and forth to each other.

I’m not saying that JP Morgan is completely out of their silver short but they may now be very, very close when you put all their various silver holdings together and net them out.


Truthfully, I don’t know but there are suspects that cannot be counted out. The prime one is Citibank as I pointed out a while back.

ALERT: Silver Short Hot Potato Being Passed Again

But I believe that plan was stopped as soon as it was noticed by the Good Guys that the Citibank silver derivative book had ballooned. The reason I think so is that after adding about $5B a quarter of silver derivatives in 2012 it was abruptly frozen and the CEO and CFO fired.

So where to now? The most likely spot would be a HEDGE FUND that is controlled by the banking cabal as their reporting requirements are almost non-existent as opposed to banks and large financial institutions.

Obviously, BlackRock would be the leading candidate as it is the largest and currently has full control of SLV as it’s legal Sponsor. They also have one of the ORIGINAL market riggers, Peter Fisher, as one of their managing directors. Here’s his bio:

Senior Managing Director Senior Director of the BlackRock Investment Institute

Mr. Fisher is a member of BlackRock’s Global Executive Committee and a senior director at the BlackRock Investment Institute which serves to leverage the investment insights of BlackRock’s portfolio managers for the collective benefit of our clients.

From 2007 to 2013, Peter served as co-head and then head of BlackRock’s Fixed Income Portfolio Management Group. From 2005 to 2007 he served as Chairman of BlackRock Asia. Prior to joining BlackRock in 2004, he served as Under Secretary of the U.S. Treasury for Domestic Finance from 2001 to 2003 and worked at the Federal Reserve Bank of New York from 1985 to 2001.

As Under Secretary of the Treasury, he was the senior advisor to the Secretary on all aspects of domestic finance including financial institutions, public debt management, capital markets, government financial management, federal lending, fiscal affairs, government-sponsored enterprises and community development. He served on the board of the Securities Investor Protection Corporation and as a member of the Airline Transportation Stabilization Board and also as the Treasury representative to the Pension Benefit Guaranty Corporation.

At the Federal Reserve Bank of New York, from 1995 to 2001, he served as an Executive Vice President and Manager of the System Open Market Account, responsible for the conduct of domestic monetary and foreign currency operation and for the management of the foreign currency reserves of the Federal Reserve and the Treasury. He also served in the Foreign Exchange Function, 1990-94, and in the Legal Department, 1985-89. From 1989 to 1990 he worked at the Bank for International Settlements, in Basel Switzerland.

Mr. Fisher’s other current responsibilities include serving as a member of the Strategic Advisory Committee at Agence France Trésor, the FDIC’s Advisory Committee on Systemic Resolution, the IMF’s Financial Institutions Consultative Group and the Google Investment Advisory Committee.

Mr. Fisher is a recipient of the Distinguished Service Award from The Bond Market Association (2004), the Alexander Hamilton Medal from the United States Department of the Treasury (2003), and the Postmaster General’s Partnership for Progress Award, United States Postal Service (2002).

Mr. Fisher earned a BA degree in history from Harvard College in 1980 and a JD degree from Harvard Law School in 1985.


The game of rigging the silver market is seemingly endless but that is exactly what we are fighting for…to END the illegal manipulation.

One day we will win and we will take our freedom back but for now the best we can do is KEEP TAKING THE FIGHT TO THEM!

Do yourself a favor…follow JP Morgan’s advice and BUY PHYSICAL SILVER at these low prices.

Tracking down the NEW holder of the Silver Short Hot Potato will be one of my major goals going forward.

May the Road you choose be the Right Road.

Bix Weir

Gold Mixed, Sees Mild Safe-Haven Demand; Collapse In Volatility In Silver Suggests Bigger Move Soon


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(Kitco News) – Comex gold futures prices are slightly higher in early U.S. trading Friday, supported on some mild safe-haven demand and short covering. Spot gold prices are modestly weaker. Comex August gold last traded up $2.00 at $1,379.80 an ounce. Spot gold was last quoted down $6.00 at $1,380.25. July Comex silver last traded up $0.102 at $21.685 an ounce.

Gold is seeing some mild safe-haven support Friday morning on news President Obama has authorized the U.S. to provide arms to Syrian rebels. This will escalate the Syrian situation that has already seen much bloodshed in that country. With U.S. arms being provided to the Syrian rebels, many will view the situation as a proxy war between the U.S. and Iran or between the U.S. and Russia. Oil prices did hit a fresh four-week high on the news.

In other news overnight, Euro zone employment fell to its lowest level of workers in seven years. Eurostat said the employment level in the Euro zone fell by 0.5% in the first quarter versus the fourth quarter of last year. Eurostat also said the annual inflation rate in the Euro zone rose to 1.4% in May versus 1.2% in April—still well below the European Central Banks target rate of 2% inflation.

The market place is awaiting next Wednesday’s meeting of the U.S. Federal Reserve’s Open Market Committee (FOMC). Fed Chairman Bernanke will also hold a press conference following the meeting. Traders and investors will be looking for fresh information from the Fed on when it will start to wind down its quantitative easing programs that have been in place for several years. The Wall Street Journal reported Friday that it believes the Fed will gradually introduce its so-called “tapering” program and that interest rates will remain low for some time to come.

European and Asian stock markets were given a slight lift Friday, partly on the Wall Street Journal Fed story easing worries the Fed could sooner take more aggressive action on ending its easy money policies.

U.S. economic data due for release Friday includes the producer price index, Treasury international capital data, industrial production and capacity utilization and the University of Michigan consumer sentiment survey.

The U.S. dollar index is firmer Friday on short covering after hitting a four-month low on Thursday. The greenback bears still have downside near-term technical momentum. Crude oil prices are higher and hit a fresh three-week high overnight. With Nymex crude prices presently around $97.00 a barrel and trending higher the past two weeks, the precious metals bulls are rooting for prices to hit the $100.00 mark, which would give a psychological boost to the entire raw commodity sector, including the precious metals.

The London A.M. gold fixing is $1,379.75 versus the previous P.M. fixing of $1,385.00.

Technically, there is not much new. August gold futures bears have the overall near-term technical advantage. Prices are in an eight-month-old downtrend on the daily bar chart. The gold bulls’ next upside near-term price breakout objective is to produce a close above solid technical resistance at last week’s high of $1,423.30. Bears’ next near-term downside breakout price objective is closing prices below solid technical support at the May low of $1,338.00. First resistance is seen at the overnight high of $1,387.20 and then at this week’s high of $1,394.40. First support is seen at $1,372.20 and then at this week’s low of $1,364.50.

July silver bears have the overall near-term technical advantage. Prices are in an overall eight-month-old downtrend on the daily bar chart. The “collapse in volatility” technical phenomenon makes me suspect a bigger price move is just on the horizon for silver. (If you’d like a complete explanation of this phenomenon, send me an email at and I’ll attach a feature story I did on the matter a while back.)

Silver bulls’ next upside price breakout objective is closing prices above solid technical resistance at last week’s high of $22.915 an ounce. The next downside price breakout objective for the bears is closing prices below solid technical support at the May low of $20.25. First resistance is seen at $22.00 and then at $22.50. Next support is seen at $21.50 and then at this week’s low of $21.33.

Follow me on Twitter to immediately get the very latest market developments. If you are not on board, then you are not getting key analysis and perspective as fast or as often as you could! Follow me on Twitter to get my very timely intra-day and after-hours briefs on precious metals price action. The precious markets will remain very active. If you want market analysis fast, and in after-hours trading, then follow my up-to-the-second precious metals market perspective on Twitter. It’s free, too. My account is @jimwyckoff.


By Jim Wyckoff, contributing to Kitco News;

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JP Morgan’s Eligible (Customer) gold inventory fell a whopping 61% today.  That’s 6.7 metric tonnes of gold taken off of JP Morgan’s inventory.  As you can see in the chart below, there are only 136,380 oz of gold left in Morgan’s Customer inventory.   Basically, JP Morgan has a little more than 4 metric tonnes of gold left in its Eligible or Customer inventory.
Furthermore, that 217,844 oz withdraw from JP Morgan’s vault accounted for 28% of its total inventory….meaning JP Morgan only has approximately 555,000 oz left in its total inventory.

It will be interesting going forward here to see if JP Morgan will be able to satisfy its withdrawal requests of gold.  The more the bullion banks push the price of gold down, the more gold will be withdrawn from the Comex.


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Stocks Pop And Credit Markets Drop As Hindenburg Omen Re-Appears


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Submitted by Tyler Durden

The cluster of Omens is starting to build – now 3 in the last 7 trading days. This cluster is now the most frequent since the 2007 highs – more ‘clustery’ than the 2010 signals. Volume today was dismal – among the lowest of the year in both futures and cash. Equity markets were bid out of the gate on the back of Japanese exuberance – and JPY carry – which oddly hadn’t helped European risk markets. Credit markets, which decoupled from equity’s reality around lunchtime Friday – were on a one-way street wider today – entirely ignoring equity’s efforts at exuberance. The USD saw earlier (JPY weakness-driven) gains entirely unwound by the close and ended unchanged but gold (small gain) and silver (+1.1%) outperformed as WTI limped modestly lower. Treasuries added 3-4bps in yield (up around 16bps from Friday’s low yields). VIX also didn’t play along with equity‘s general lack of direction and rose 0.5 vols to 15.5%. Homebuilders are underperforming once again but financials remain the best performers off Friday’s lows (for now). Nikkei futures did nothing all day – hovering at last week’s dead-cat-bounce highs.


Today was the lowest NYSE volume of the year (and practically the lowest in S&P futures also)…


But we have now seen the 4th Omen in last 5 weeks and 3rd in last 7 days… quite a cluster…


not seen since the highs in 2007…


Credit markets were entirely unimpressed with the rally in stocks…


Homebuilders squeeze from last Thursday’s lows has ben notably undone but today was flatline in most other sectors…


and while financial stocks outperform (above), financial credit markets are not amused…


But once again FX markets were very active…


but gold and silver saw gains despite the USD ending unch… as oil and copper fell on china data…


and it looks like the Nikkei is rolling over at the bounce from last week…


Charts: Bloomberg and Captal Context

Bonus Chart: AAPL’s algo-driven dumpfest – triggered off the ‘radio’ news (that was well known) algos ramped to VWAP to enable the big boys to dump (volume)…


Bonus Bonus Chart: LULU gets pants’d… as CEO steps down… now holding at its 50DMA


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China Approves Gold-Backed ETPs as Domestic Buyers Chase Bullion


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China approved two domestic exchange-traded products backed by gold as global holdings of the precious metal in ETPs dropped to a two-year low.

Huaan Asset Management Co. and Guotai Asset Management Co. received the China Securities Regulatory Commission’s permission to start the funds, which will be denominated in yuan, said Liu Jianqiang and Li Yebin, spokesmen for Huaan and Guotai. They will be traded like stocks on the Shanghai Stock Exchange (SHCOMP), tracking movements of spot gold on the Shanghai Gold Exchange, Liu and Li said separately by telephone from Shanghai.

Buyers in mainland China viewed the rout as buying opportunity and rushed to purchase jewelry, bars and coins in late April and early May. Photographer: Lam Yik Fei/Bloomberg

Gold slid into a bear market in April amid concern the U.S. Federal Reserve may rein in stimulus that helped bullion cap a 12-year bull run in 2012 and as investors reduced holdings in exchange-traded products backed by the metal. Buyers in mainland China viewed the rout as buying opportunity and rushed to purchase jewelry, bars and coins in late April and early May.

“Gold ETFs should help boost gold demand as they will make Chinese investments in the bullion much easier,” Zhang Bingnan, secretary-general of the China Gold Association, said by phone from Beijing today. “The dumping recently of holdings in gold exchange-traded products by overseas investors may not prove to be a wise move.”

Huaan and Guotai haven’t started raising money for the funds yet and didn’t give an indication of their potential size, according to the spokesman. Two calls to the China Securities Regulatory Commission went answered today, which is a holiday in China.

Gold futures are traded on Shanghai Futures Exchange and spot and deferred delivery contracts traded on the Shanghai Gold Exchange.

Custodian Banks

China Construction Bank Corp. (939) will be the custodian bank for the Huaan gold ETF, Liu said. Industrial & Commercial Bank of China Ltd. (601398) will play the same role for the Guotai, according to Li.

Holdings in gold-backed exchange-traded products shrank 19 percent this year as investors cut 496 tons of the metal, according to data compiled by Bloomberg.

“We think the timing is pretty good after the recent decline because gold prices have got close to the cost of production, limiting downside risks,” Liu at Huaan said.

Gold slid as much as 31 percent from a record in September 2011 through April 16, when it slumped to $1,321.95 an ounce.

Bullion traded at $1,385.99 at 12:30 p.m. in Shanghai. Gold of 99.99 percent purity on the Shanghai Gold Exchange traded at 281.05 yuan a gram ($1,425 an ounce) on June 7.

The premium gold buyers in China pay to take immediate delivery of bullion jumped four-fold as physical demand surged. In the 12 months through April 12, before the rout, spot gold in China traded at an average premium of $7.22 an ounce to the global price, according to the Shanghai Gold Exchange. The premium averaged $33 an ounce from mid-April through May.

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