Shanghai Gold Exchange volume for the week ended July 17, 2015.
The Shanghai Gold Exchange withdrawals were 69.175 tonnes of gold during the week ended July 17, 2015 – the fifth largest week ever.
Total gold withdrawals on the Shanghai Gold Exchange year to date are 1337.27 tonnes.
Withdrawals on the Shanghai Gold Exchange are running 30% higher than last year.
Gold withdrawals on the Shanghai Gold Exchange the past two weeks were larger than the amount of gold delivered on COMEX during 2014 and greater than the amount of gold Germany has repatriated from the New York Fed since 2013.
China’s Insatiable Demand for Gold
The Shanghai Gold Exchange (SGE) delivered 68.27 tons of gold during the week ended July 17, 2015. The prior week the SGE delivered 61.824 tonnes of gold.
The two week total is over 130 tons of gold delivered and the year to date total is over 1,337 tons, for an annualized run rate of approximately 2,500 tonnes.
Shanghai Gold Exchange Withdrawals During the Two Week Period Ended 7/17/2015 vs. Comex 2014 Deliveries
Withdrawals on the Shanghai Gold Exchange were a staggering 130 tonness during the two week period ended July 17, 2015.
Volume of Gold Withdrawals on the Shanghai Gold Exchange
Withdrawals on the Shanghai Gold Exchange for the week ended July 17, 2015 were over 69 tonnes- the fifth largest amount of any given week since 2009.
The volume of withdrawals of gold on the Shanghai Gold Exchange after twenty nine weeks are running at record pace.
Withdrawals of gold to date on the Shanghai Gold Exchange are running at a record rate.
China is becoming the center of the Asian gold world. A $16 billion China Gold Fund was announced in May 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 focuses no so much on selling U.S. Treasuries but creating alternative financial systems like the Asian Infrastrucure Investment Bank.
Russia, India, Turkey and China are consuming a bulk of the world’s gold as gold heads west to east.
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.
China Updates its Gold Holdings
China recently announced their first update to their official gold holdings since 2009. The People’s Bank of China announced that their gold holdings had climbed from 1054 tons to 1658 tons, making China the sixth largest gold holding nation in the world.
China’s recent update to its gold holdings put it in fifth place among gold holding nations.
The Bank of China also recently joined the auction process at the London Bullion Market Association where the price of gold is determined.
The volume of gold withdrawn from the Shanghai Gold Exchange dwarves 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; more than twenty tons less than the amount that was withdrawn from the Shanghai Gold Exchange during the past two most recently reported weeks!
The volume of gold withdrawn on the SGE (130.194 tons) in two weeks is also egreater than the amount of gold that Germany has managed to repatriate from the New York Fed since January 2013 through March 2015 (90 tons).
In addition, the new Chicago Merchatile Exchange futures contract for Hong Kong Kilobars has experienced withdrawls of nearly five tons of gold a day since it began in mid March earlier this year. As of July 16, 355 tons of gold have been withdrawn pursuant to this program for an annualized run rate over 1,200 tons of gold a year.
COMEX Hong Kong Gold Kilobar Withdrawals Through July 16, 2015
Comex Hong Kong gold kilo bar withdrawals have been averaging over five tons of gold a day.
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. Together they account for approximately 3,000 tons a year in gold demand.
China and India Gold Demand
China and India make up a good portion of global gold demand.
The Bank of China also recently joined the auction process at the London Bullion Market Association where the price of gold is determined.
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 April 2015.
China imports large amounts of gold through Hong Kong.
All charts, other than the Chinese gold mining production chart, courtesy of Nick Laird.
Shanghai Gold Exchange Volume: Gold Miner Pulse
Subscribe to Smaulgld.com to receive free gold and silver updates, news and analysis.
Further Reading:
Shanghai Gold Exchange Withdrawals (weekly archive)
Comex Gold Deliveries vs the Shanghai Gold Exchange
Gold Continues its Journey From West To East
Shanghai Gold Exchange vs Comex Gold Deliveries
Gold ETF Holdings vs the Shanghai Gold Exchange
Gold and Silver Price Manipulation – Suspected
Gold and Silver Price Manipulation – Actual
Gold Reserves by Country – Top Twenty
Gold Moves West to East Part 1
Gold Moves West to East Part 2
Chinese vs. United States Gold Demand
China Hoards its Gold Production
Please visit the Smaulgld Store for a large selection of recommended Kindles, books, music, movies and other items.
You can support Smaulgld.com by making all your Amazon purchases through the search widget below and by ordering your gold and silver by clicking on the JM Bullion, BGASC, Goldbroker, Golden Eagle Coin, Miles Franklin, Perth and Royal Canadian Mint ads on the site.
DISCLOSURE: Smaulgld provides the content on this site free of charge. If you purchase items though the links on this site, Smaulgld LLC. will be paid a commission. The prices charged are the same as they would be if you were to visit the sites directly. Please do your own research regarding the suitability of making purchases from the merchants featured on this site.
Chart Disclaimer: Information presented here has been obtained from a third party and is presented for information purposes only. Smaulgld can not and does not guarantee the accuracy or timeliness of the data displayed on this site and therefor the data provided should not be used to make actual investment decisions. You should always consult a professional investment adviser before investing in precious metals or any type of investment. You acknowledge that Smaulgld assumes no responsibility for the integrity of data on this site.
The content provided here is for informational purposes only. Making investment decisions based on information published by Smaulgld (SG), or any Internet site, is not a good idea. Accordingly, users agree to hold SG, its owner and affiliates, harmless for all information presented on the site. SG presents no warranties. SG is not responsible for any loss of data, financial loss, interruption in services, claims of libel, damages or loss from the use or inability to access SG, any linked content, or the reliance on any information on the site.
The information contained herein does not constitute investment advice and may be subject to correction, completion and amendment without notice. SG assumes no duty to make any such corrections or updates. As with all investments, there are associated risks and you could lose money investing. Prior to making any investment, a prospective investor should consult with its own investment, accounting, legal and tax advisers to evaluate independently the risks, consequences and suitability of that investment. SG disclaims any and all liability relating to any investor reliance on the accuracy of the information contained herein or relating to any omissions or errors and as such disclaims any and all losses that may result.
Send Litecoin to this address:
