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How will the mild (30% in 3 weeks) Chinese stock market fluctuations affect precious metals?

jmski52jmski52 Posts: 22,851 ✭✭✭✭✭
in Precious Metals
Might this be a black swan? Most of us know that Chinese accounting standards aren't what you might call "transparent". Apparently the Chinese government has been pumping up their stock market significantly and now it's become a blowout in the opposite direction.

We've seen this movie before in SE Asia. Will China now be selling their US Treasuries in an attempt to bouy their stock market and stave off social upheaval? If there's a liquidity problem already with prime paper, who's gonna buy the excess US Treasuries?

Will they print a ton more of their currency as they've already been doing? How many US banks are tied into the Chinese market in a serious way?

Does this represent the systemic deflation that cohodk has been going on about? If so, what next for precious metals? It's looking dicey, if you even want to look.

If the stock market drags precious metals down along with it, will they rebound bigtime when the money-creation gets ramped up? So far, that hasn't happened since 2011.

China down > 30% in 3 weeks.

(P.S. - aren't we glad that US accounting standards haven't been totally compromised so that we know which banks have bogus "assets" on their books?)
Q: Are You Printing Money? Bernanke: Not Literally

I knew it would happen.

Comments

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    They should see massive strength. . . in china.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • OPAOPA Posts: 17,121 ✭✭✭✭✭
    Don't know, but so far, it appears to be a "non event" for precious metals.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    Investors will be forced to sell gold to cover the margin calls for their crashing stocks. Gold will go way down. However, they will derive consolation pleasure from stacking silver, and increase their demand for novelty bars and rounds, so silver will go up. image

    Or, alternatively, nothing will matter. Gold and silver are stable at these prices, with a balance between supply and demand and will remain so for the foreseeable future.

    Liberty: Parent of Science & Industry

  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭
    The Chinese market crashed? Seems it's just where it was a few months ago.

    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭


    << <i>The Chinese market crashed? Seems it's just where it was a few months ago. >>



    Oh, hyperbole is alive and well. The Chinese stock market didn't just "decline" or "correct", it CRASHED!

    Just like the housing market and the US economy COLLAPSED! The middle class is DEAD!! Morality and business ethics are EXTINCT!! and an old coin with a light cleaning or small scratch is RUINED!!

    Could go on and on about the government (BANKRUPT) the educational system (WORTHLESS) businesses (CORRUPT) the Constitution (also DEAD) but you get the idea..

    "Life is pretty good for most people" just doesn't make as compelling a headline as "WE ARE ALL GOING TO DIE!!*"

    (*someday)

    Liberty: Parent of Science & Industry

  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Wow... doom and gloom..... oh well, got to mow the lawn... Cheers, RickO
  • jmski52jmski52 Posts: 22,851 ✭✭✭✭✭
    The Chinese market crashed? Seems it's just where it was a few months ago.

    Oh, hyperbole is alive and well. The Chinese stock market didn't just "decline" or "correct", it CRASHED!

    Okay, ya'll win. Title changed to be more comforting and politically correct. Let's not question anything that might affect our markets!

    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • mhammermanmhammerman Posts: 3,769 ✭✭✭
    "Will China now be selling their US Treasuries in an attempt to bouy their stock market and stave off social upheaval? If there's a liquidity problem already with prime paper, who's gonna buy the excess US Treasuries?"

    Can't they just surrender them to the Fed at maturity and ask for their money...in cash? Oooohhhh


    Got SAE's?


  • CCC2010CCC2010 Posts: 1,997 ✭✭✭


    Got SAE's? >>



    JPM got it all in their vault... I think... image
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  • BaleyBaley Posts: 22,660 ✭✭✭✭✭


    << <i>The Chinese market crashed? Seems it's just where it was a few months ago.

    Oh, hyperbole is alive and well. The Chinese stock market didn't just "decline" or "correct", it CRASHED!

    Okay, ya'll win. Title changed to be more comforting and politically correct. Let's not question anything that might affect our markets! >>



    Oh, don't get me wrong, this is another CRISIS! and could sure impact US markets, probably will. It's just that we've seen so many.. remember the "Asian Contagion" from 1997?

    The sky is always falling, but it never.. quite.. does. Maybe this will be "the catalyst" that boosts metals, hell, I hope it does, I'd like to sell some for more than I paid.

    But first, will enjoy a happy 4th of July, and hope you all do, too :flag; image

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    Maybe they'll start buy American electronics and toys. image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • CaptHenwayCaptHenway Posts: 32,145 ✭✭✭✭✭
    This story says that they are looking for manipulators:

    linky

    Now, when does that new Chinese gold market open?
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • derrybderryb Posts: 36,824 ✭✭✭✭✭


    << <i>This story says that they are looking for manipulators:

    linky

    Now, when does that new Chinese gold market open? >>


    They might want to start with JPM and Goldman Sachs. From the link this might be part of the problem: "It also said China's official margin lender for brokerages, which makes loans available for stock market investment, would boost its capital base to 100 billion yuan ($16 billion) from 24 billion yuan to expand its business.

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭
    Sure, the ancient Greeks had Zeus and Poseidon and that lot, the Egyptians had Osiris and Isis, the Christians had, well, you know..

    ... and now we have GS and JPM, throwing lightningbolts, and spinning and cutting everyone's life threads

    Liberty: Parent of Science & Industry

  • jmski52jmski52 Posts: 22,851 ✭✭✭✭✭
    Rainbows and unicorns. Zeus and Poseidon. Kim Kardashian and Caitlyn.

    30% isn't a "crash", as long as their market was at the same level a few months ago!! ???

    It will go down if it doesn't go up or sideways. ???? !!!

    Real substantive stuff here, guys. Way to go. If you're only going to mock a post about a 30% market decline, why bother?

    Seriously.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭
    What if you wrote a year ago, "The Chinese stock market will go up 150% in the next year. How will this massive wealth creation affect gold?"

    Relativity!!!!! Always relativity.

    Enjoy today celebration of the greatest country in the planet.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • BaleyBaley Posts: 22,660 ✭✭✭✭✭


    << <i>.. It will go down if it doesn't go up or sideways. ???? !!!

    Real substantive stuff here, guys. Way to go. If you're only going to mock a post about a 30% market decline, why bother?

    Seriously. >>



    Hey, these opinions about the future are worth every penny you paid for them! Happy Fourth!

    image

    Liberty: Parent of Science & Industry

  • derrybderryb Posts: 36,824 ✭✭✭✭✭
    Happy Fourth. Small local parade. Let freedom ring!

    image

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • cohodkcohodk Posts: 19,129 ✭✭✭✭✭
    Chinese market up 20% in the last 3 weeks.
    Excuses are tools of the ignorant

    Knowledge is the enemy of fear

  • OPAOPA Posts: 17,121 ✭✭✭✭✭


    << <i>Chinese market up 20% in the last 3 weeks. >>



    and PM's continuing their downward spiral.
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • jmski52jmski52 Posts: 22,851 ✭✭✭✭✭
    Chinese market up 20% in the last 3 weeks.

    Yep, fundamentals are in play. They'll arrest you if you try to sell any stocks, lol.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • jmski52jmski52 Posts: 22,851 ✭✭✭✭✭
    << Chinese market up 20% in the last 3 weeks. >>

    Whoops! Maybe not.

    limit down

    Threats of jail time for "malicious sellers" of stocks, and yet the whole stock market goes limit down.

    Carry on. I'm sure it's "nothing".image
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


    << <i>....and PM's continuing their downward spiral. >>



    Good bottom call Friday am.
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • CaptHenwayCaptHenway Posts: 32,145 ✭✭✭✭✭
    In the precious metals markets, this is what we would call a "SPLUNGE!!!"
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
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