Shanghai Gold Exchange volume for the week ended May 22, 2015.
The Shanghai Gold Exchange delivered 42.493 tonnes of gold during the week ended May 22, 2015.
Total gold withdrawals on the Shanghai Gold Exchange year to date are about 947 tonnes.
The Shanghai Gold Exchange continues to establish itself as viable competitor to the gold trading centers in London and Chicago and is 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 indeed becoming the center of the Asian gold world. A $16 billion China Gold Fund was announced earlier this week.
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 Exchanged delivered another 42 tons of gold during the week ended May 22, 2015.
Shanghai Gold Exchange monthly gold withdrawals have increased dramatically over the past few years.
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.
Chinese gold imports and gold deliveries on the Shanghai Gold Exchange are both strong.
Shanghai Gold Exchange Charts courtesy of Nick Laird.