- WallStForMainSt Published on Aug 11, 2019
According to multiple sources, demand for physical gold in mainland China at the retail level is so extremely strong that many people do not mind paying the reported 7% premiums above spot prices there and now there’s developing shortages of gold bullion in mainland China at the retail level.
Some retail gold bullion dealers are also hoarding expecting higher gold prices. People in mainland China are worried about more devaluation of the RMB as well as the credit bubble, real estate bubble and banking problems in China. The newest rumor (waiting for additional confirmation) is that now demand for physical gold bullion in Hong Kong is so strong that there’s now shortages of gold bars in Hong Kong. This may be because of the escalating political tensions in Hong Kong over people protesting for free speech and also protesting the potential extradition laws back to mainland China.
Many residents of Hong Kong are considering moving away or at least moving more of their savings out of Hong Kong. And there’s even rumors, confirmed by the White House in the US, with satellite photos, of a massive gathering of Hong Kong police in riot gear or People’s Liberation Army (PLA) military buildup of troops across the river from Hong Kong in Shenzhen. If you’re not familiar with Hong Kong, Shenzhen is directly across the river from Hong Kong in mainland China in the Pearl River Delta region. Prices of physical gold in Chinese Yuan and the Hong Kong Dollar have both gone up a lot since April and May of 2019 and the gold prices charts are quite similar.