Shanghai Gold Exchange volume for the week ended June 5, 2015.
The Shanghai Gold Exchange delivered 32.695 tonnes of gold during the week ended June 15, 2015.
Total gold withdrawals on the Shanghai Gold Exchange year to date are about 1,017 tonnes.
China is becoming the center of the Asian gold world. A $16 billion China Gold Fund was announced last month and the Shanghai Gold Exchange continues to establish itself as viable competitor to the gold trading centers in London and Chicago. China’s gold imports, trading and mining production are one of the cornerstones of China’s de-dollarization/Yuan strengthening initiatives that also includes selling U.S. Treasuries and the creation of the Asian Infrastrucure Investment Bank.
China is widely believed to be making a play for inclusion in the International Monetary Fund’s (IMF) Special Drawing Rights (SDRs) Program later this year. If China fails to gain inclusion in the SDR, its recent initiatives to strengthen its currency and gain greater acceptance of the Yuan may provide a strong alternative to the IMF regime.
The volume of gold delivered on the Shanghai Gold Exchange dwarfs the volume of gold delivered on the COMEX futures gold exchange where most gold futures contracts are not settled by physical delivery of gold.
In 2014, COMEX delivered under 85 tons of gold or about the amount that the Shanghai Gold Exchange delivers every two weeks!
Volume of Gold Delivered on the Shanghai Gold Exchange
The Shanghai Gold Exchange delivered 32.695 tonnes of gold during the week ended June 5, 2015.
Weekly gold withdrawals on the Shanghai Gold Exchange have averaged over 40 tonnes in 2015.
Along with India, China consumes much of the world’s gold. Depending on any given month, either China or India is the number one gold consumer in the world.
China and India Gold Demand
China and India consume much of the world’s gold.
China is the world’s largest gold producer:
China is the world’s largest gold producer with mining production over 2,000 tons the past five years.
In addition to the vibrant Shanghai Gold Exchange and increasing world leading gold mining production, China is also the world’s largest gold importer. Here is a chart showing the volumes of gold traded on the Shanghai Gold Exchange vs. gold imported through Hong Kong as of March 2015.
China continues to import massive volumes of gold through Hong Kong.
All charts, other than the Chinese gold mining production chart, courtesy of Nick Laird.