Vince Lanci: China's Gold Buying is Back in a Big Way

Tom Bodrovics welcomes back Professor Vince Lanci, MBA Finance and Publisher of the Goldfix Substack, for a discussion on polticis and recent global buying patterns particulary in China. Specifically the significant 'Chinese whale', Zhang Kai Futures. Despite public purchases, China's government has also bought gold clandestinely through other less obvious channels. Goldman Sachs updated projections reveal ongoing gold buying by China, causing market rallies and awareness.

Vince explores Exchange for Physicals (EFPs) and premium spreads in bullion banks, discussing tariff anxiety's potential impact on global physical metal flows. The EFP mechanism links London's physical market to New York's financial center, but tariffs may influence production countries and traders' choices.

Gold prices are expected to reach new all-time highs soon. Vince touches on tariffs' primary impact on silver in the U.S., as a significant importer compared to its gold production.

Furthermore, they discuss America's potential need to become a manufacturing economy again and Trump's plans involving factories, jobs, and exports. The challenge lies in financing this project with China no longer buying U.S. debt. Trump proposes reducing the deficit through energy cost reductions and weakening the dollar through tariffs, but that approach could lead to inflation and deficit issues.

Vince and Tom discuss potential changes in government funding, specifically regarding income taxes versus tariffs. Trump intends to negotiate with other countries using tariffs as leverage for domestic job creation and foreign investment. Vince emphasizes the importance of addressing economic conflicts to prevent escalation into full-blown conflicts.

Timestamp References:
0:00 - Introduction
0:43 - China's Gold Whale
12:38 - EFP Premiums & Spread
25:00 - Supply & Net Imports
28:24 - Silver Prices??
34:48 - Manufacturing USA
43:38 - Driving Dollar Lower
47:00 - Tariffs & Income Tax
54:54 - Historic Analogies
58:03 - Economic World War
1:00:47 - Tensions & Risks
1:02:40 - Wrap Up

Talking Points From This Episode
- China's government buys gold publicly and clandestinely through various back channels, including commercial banks and SAFE.
- Tariffs could significantly impact physical metal flows by influencing where silver is sourced and it's country of origin.
- Trump plans to revive American manufacturing through tariffs and changes in income tax.

Guest Links:
Website: https://vblgoldfix.substack.com/
Twitter: https://x.com/Sorenthek
LinkedIn: https://www.linkedin.com/in/vincentlanci/
Boobs & Bullion: https://x.com/boobsbullion

Vince Lanci, a seasoned finance professional, has served as Managing Partner at Echobay Partners LLC since 2008. His expertise spans over three decades in metals trading, option analysis, and technology development.

In recent years, Mr. Lanci's insights have been sought after by industry legends. He was invited to be a resident expert on precious metals and option analysis for Larry Benedict's Opportunistic Trader project. In 2017, he co-authored a paper on Energy Volatility with Professor Robert Biolsi at the University of Connecticut.

Prior to his current role, from 2004 to 2008, Mr. Lanci served as Co-Head of Metals & Energy Trading for CiS Options LLC. During this tenure, he managed the long-short and volatility arbitrage portfolios for the parent Limited Partnership fund.

From 1993 to 2003, Mr. Lanci was the proprietor of Berard Capital LLC, where he led a team of option marketmakers. His earlier career included stints at Lehman Bros and Cooper Neff from 1987 to 1993, providing him with a solid foundation in finance.

In 2000, Mr. Lanci co-founded Whentech (originally named Upperhand Technologies LLC) with David Wender. As chief architect of the "Pit-Trader" user interface logic, he played a pivotal role in the company's inception.

Mr. Lanci's thought leadership extends beyond his professional engagements. He contributes regularly to Zerohedge, BBG, and RTRS. His expertise has also been showcased at Mondo Visione and NYC Mines & Money conferences. A firm believer in level playing fields for investors, he advocates for transparency and fairness in financial markets.