The Value-added Tax System In China’s Domestic Gold Market

BullionStar Important for a thorough understanding of the Chinese domestic gold market – the largest physical gold market globally – is the local Value-added Tax (VAT) system. In the Gold Survey 2016 by Thomson Reuters GFMS there is a complex illegal scheme described whereby criminals obtain VAT invoices from the Shanghai Gold Exchange (SGE) for tax evasion. According to GFMS this scheme is one of the reasons why SGE withdrawals are significantly higher than “Chinese consumer gold demand”. To be able to properly clarify this scheme I will first expand on the workings of the VAT system in China’s Gold […]

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Turkey Has Declared War On Syria – Does This Mean That World War 3 Is About To Erupt In The Middle East?

Turkish President Recep Tayyip Erdogan has just announced that the only reason Turkish military forces have entered northern Syria is to “end the rule of the tyrant al-Assad”.  By publicly proclaiming that Turkey intends to use military force to overthrow the regime of Syrian President Bashar al-Assad, Erdogan has essentially declared war on the Syrian government.  Of course this puts a member of NATO in direct military conflict with Russia, since Russia is working very hard to prop up the Assad regime.  If all-out war breaks out between Turkey and Russia, could that be the spark that causes World War […]

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China’s Economic Imperialism Could Spell Trouble

In 2007, a Chinese company bought Mount Toromocho in Peru. That’s right. A mountain, in another country. It’s more than half the height of Mount Everest, but aesthetic beauty wasn’t a factor. Beneath the mountain’s surface sits two billion tons of copper, one of the largest reserves in the world. Through a state-owned company, the Chinese government secured access to yet another natural resource overseas. Over the last 20 years, the country has employed a kind of economic imperialism, buying minerals, farms, and water rights in far-flung places around the globe. Now the country is developing the technical know-how of […]

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Is Now a Good Time to Swap Stocks for Precious Metals?

Few U.S. investors own even an ounce of gold or silver bullion, so it should come as no surprise that almost none of them know of the various options to hold bullion in an IRA. It doesn’t help that financial professionals who coach people on what to hold in their retirement accounts typically aren’t much better educated than their clients when it comes to gold. Most investment advisers tout “diversification” as a key investment strategy. But they limit their clients to IRAs stuffed full of nothing but paper assets – stocks, bonds, and mutual funds. Wall Street pays them handsomely […]

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Why Are So Many Among The Elite Building Luxury Bunkers In Preparation For An Imminent ‘Apocalypse’?

Do they know something that the rest of us do not?  There are tens of millions of ordinary Americans that are feeling really good about the future now that Donald Trump has won the election, but meanwhile the elite are feverishly constructing luxury bunkers at a pace unlike anything we have ever seen before.  So why are so many among the elite preparing for an imminent “apocalypse” when tens of millions of other Americans are anticipating a new era of peace and prosperity?  Are they smarter than most of the rest of us, or are they simply being paranoid? Without […]

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Why Gold Isn’t Rallying After Trump’s Win

Even though the markets haven’t behaved logically of late, it would have seemed a slam dunk for gold to rise if Donald Trump won. After all, we faced uncertainty around his policies, rising inflation from infrastructure spending, and higher expected growth rates. But instead, gold has headed back down more sharply. It had its initial rise in the futures market when Trump looked like he was going to win. But since then, it’s reversed course – the opposite of the stock markets. While I’ve been saying for a long time now that gold still has a lot to lose, a […]

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Brexit, trade and echoes of the past

Brexit supporters have been severely critical of the OBR for its grim outlook for the UK post Brexit. The OBR is by no means the most negative of the professional forecasting bodies, and historically its forecasts have tended to err on the side of optimism, as Duncan Weldon observes. But it struggles to find anything good to say about post-Brexit Britain. In particular, it is distinctly negative about the future for Britain’s external trade. Brexit is above all a shock to trade, since its primary impact will be on Britain’s trading relationships, not only with the EU but with other countries […]

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What It Feels Like To Be Homeless For The Holidays In America

Could you imagine spending the holidays in a homeless shelter, in a tent city surrounded by drug addicts and prostitutes, or in a sleeping bag on the cold, hard streets of an urban jungle?  Unfortunately, that is what real life looks like for an increasing number of Americans.  Most of the time when we think of “homeless people”, the image that comes into our minds is one of a grizzled old man asking for some spare change, but the truth is that vast numbers of women and children in our country do not have anywhere to live.  In fact, Poverty […]

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5 Reason the U.S. Debt Should Inspire You to Invest in Silver

The U.S. National Debt is a “train-wreck.” The official debt is nearly $ 20 trillion and the unfunded liabilities are $ 100 – $ 200 trillion, depending on who is counting. It can never be repaid. Implications are dire. Official debt doubles about every 8 years. Does $ 80 trillion of official debt in the early 2030s sound viable? Per Krugman there is no problem. Consider the source. Denial is not a winning strategy, but it does prolong the period before the crash. The losers in the crash will probably not be the financial or political elite. That leaves the […]

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Q1 – Q3 2016 China Net Gold Import Hits 905 Tonnes

BullionStar Withdrawals from the vaults of the Shanghai Gold Exchange, which can be used as a proxy for Chinese wholesale gold demand, reached 1,406 tonnes in the first three quarters of 2016. Supply that went through the central bourse consisted of at least 905 tonnes imported gold, roughly 335 tonnes of domestic mine output, and 166 tonnes in scrap supply and other flows recycled through the exchange. Core Supply & Demand Data Chinese Gold Market Q1-Q3 2016 Chinese gold demand is still going strong this year, albeit less than in 2015. The most likely reason for somewhat lower demand has […]

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