SGE withdrawals 2014 week 2The second weekly report that covers the five trading days from January 6th 2014 to January 10th was released today by the Shanghai Gold Exchange, and revealed a spectacular 79 tons physical gold has been withdrawn from the vaults.
Last week I wrote withdrawals were down, but could well pick up this month as China will celebrate Chinese new year on January 31, 2014 according to the Chinese Lunar calendar.  And withdrawals did pick up..
This type of demand puts the physical gold market under severe stress, hence the scramble for gold in London a few days ago:

 

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Submitted by Koos Jansen, In Gold We Trust:

In the second weekly report, that covers the five trading days from 6-1-2014 to 10-1-2014, today released by the Shanghai Gold Exchange we can read a spectacular amount of physical gold has been withdrawn from the vaults; 79 tons. Last week I wrote withdrawals were down, but could well pick up this month as China will celebrate Chinese new year on January 31, 2014 according to the Chinese Lunar calendar. And withdrawals did pick up..

 

This type of demand puts the physical gold market under severe stress, hence the scramble for gold in London a few days ago. “There is a shortage of big bars, especially good-delivery 400-ounce bars”, said Bernard Dahdah from Natixis “One part of the problem is that large quantities of these bars that have come from ETFs, have now been moved to be re-refined into three-nines bars of smaller sizes and are therefore no longer available to the London market.”  The 1 month Gold Forward Offered Rate has been negative throughout the entire week Chinese demand was this strong. Until January 31 demand for physical could remain elevated, after which it will likely return to its average strong levels.

 

Next to insatiable physical gold demand from China, these are interesting times in the gold market as the German Federal Financial Supervisory Authority, Bafin, made allegations at banks saying ”possible manipulation of currency rates and prices for precious metals is worse than the Libor-rigging scandal“, on January 17. The Financial Times reported in December, citing sources, that Bafin demanded documents from Deutsche Bank as part of a probe into suspected manipulation by banks of benchmark gold and silver prices. Maybe it’s not a coincidence that Deutsche Bank, one of five banks involved in setting these benchmark gold and silver prices, stated today that they will stop participating.

Overview Shanghai Gold Exchange data 2014 week 2

 

 

- 79 metric tonnes withdrawn in week 2, 6-01-2013/10-01-2013
- w/w  + 120.9 %, y/y + 49 %
- 99 metric tonnes withdrawn year to date

 

Source: SGEUSGS

 

My research indicates that SGE withdrawals equal total Chinese gold demand. For more information read thisthisthis and this.

 

SGE withdrawals 2014 week 2

 

This is a screen dump from Chinese SGE trade report; the second number from the left (本周交割量) is weekly gold withdrawn from the vault, the second number from the right (累计交割量) is the total YTD.


SGE withdrawals 2014 week 2

 

This chart shows SGE gold premiums based on data from the Chinese SGE weekly reports (it’s the difference between the SGE gold price in yuan and the international gold price in yuan).

 

SGE premiums 2014 week 2

 

Below is a screen dump of the premium section of the SGE weekly report; the first column is the date, the third is the international gold price in yuan, the fourth is the SGE price in yuan, and the last is the difference.

SGE premiums

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  1. @TheDoc: We get reports on how much Ag & Au other nations import/consume but not  about how much the U.S. consumes. We do get info about how much we export though. Do you know of someplace where one could get that info? Not just what the U.S. mint sells but all combined sales tallied up.

    • Silvermail, i don’t normally correct grammar but i have enjoyed our chats and know english is not your first language.  in this example, it would be bette to say “I *really*like” instead of *very*
       
      and i agree with your sentiment

  2. If you real think hard an wonder hard. You can come up with a very easy answer to why all this gold is getting moved around an its the physical stuff too. And you get an easy answer if you ask where is all the gold going to as will as where it is coming from. With just with these answers I bet I know whats coming down the road for us. Here is the true hard facts we all agree on. America is being depleted of its gold and its going over seas away from the usa. And all the governments seem to know something the people do not. Meaning they are wanting there gold back and are having a hard time doing it. From all this it can only mean one simple thing. When the comex defaults the u.s. government will outlaw gold again. And will being again asking for the publics gold too. The other governments know this an they are scrambling to get all there gold out of the usa.

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