SGE weekly 51In the end-stages of 2013, in between December 16th and 20th, the “Chinese Aunties” have withdrawn 55 tons of gold from the vaults of the Shanghai Gold Exchange. That’s more than the official gold reserves of Finland and most likely more than what has been globally mined that week. The Chinese gold rush has been in an upward trend in recent weeks.
Lets see how much gold will be drawn from the vaults in the last trading week of 2013. The yearly total of withdrawals, which equal Chinese gold demand, are on track to reach 2169 tons.

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Submitted by Koos Jansen, In Gold We Trust:


SGE gold premiums remained stable over this period around 1 %.

Overview Shanghai Gold Exchange data week 51


- 55 metric tonnes withdrawn in week 51 (underlined in blue two images below), 16-12-2013/20-12-2013
- w/w  + 8.81 %
- 2128 metric tonnes delivered year to date (underlined in red two images below)
- weekly average 41.7 tonnes YTD, 2013 estimate yearly total 2169 tonnes.




For more information on SGE withdrawals read thisthisthis and this.


SGE weekly 51



This is a screen dump from Chinese SGE trade report; the second number from the left (本周交割量) is weekly gold withdrawn from the vault, the second number from the right (累计交割量) is the total YTD.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 week 51


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



SGE premiums


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


On December 28 there was a podcast released on named: PM FUND MANAGER: 57 TONS OF GOLD DRAINED FROM SHANGHAI VAULTS IN PAST WEEK! It’s a conversation between the Doc and Dave Kanzler.

My comment on the part where they talk about the SGE (starts at 6:50):


The Doc states correctly that in between 9 and 13 December 2013 there were 50 tons of gold withdrawn from the SGE vaults (look a few images up at the screen dump from the Chinese SGE weekly report, I drew a green line under this amount of withdrawals). The Doc also states there has been roughly 2100 tons of gold withdrawn year to date which equals Chinese demand according to the PBOC (underlined in red). Again correct, IMVHO.


Then Dave Kanzler responds that is was actually 57 tons in that week (9-13 December). From this moment on Dave and the Doc start talking about two different subjects. The Doc refers to gold withdrawn from the vaults, where Dave refers to the amount of gold in the vaults that changes ownership at the end of a trading day through settlement between long and short contracts (a process that can be repeated into infinity, not quite significant data for gold investors that are interested in demand). I know this not only because they state different numbers, I know this because it’s clear where Dave gets his data from. Dave looks at the English SGE website that only publishes data on gold ownership changes in the vaults (if you check the website it exactly coincides with Dave’s numbers). The Doc looks at the Chinese SGE website  that publishes how much physical gold actually leaves the vaults and tells us a lot about Chinese demand.

I wrote an open letter to Andrew Maguire once on the same matter.

Happy new year!

In Gold We Trust

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  1. Hahaha   the Chinese get the gold.  We get  Janet Yellen, the bad check felon. 
    What could go wrong? 
    The more of these articles I read,  the happier I am with my gold. 
    Molon Labe   or Yellen Grabby.  The choice is pretty simple.

  2. I thought this was an interesting article, based simply on the volume of its ignorance…
    Avoid gold: The last correction took 20 years–the-last-correction-took-20-years-182148974.html

    “I can’t find a lot of reasons to like gold,” Nelson says in the attached video, citing three reasons for his continued caution.
    “The whole reason people wanted to buy it has been blown out of the water”
    He also worries the metal’s appeal as a hedge against devaluation of the dollar has taken a hit too, thanks in no small part to the advent of virtual currencies like Bitcoin…
    …the run-up in gold was partly fueled by the launch of the SPDR Gold ETF which made it cheaper and easier than ever to buy, hold, or sell this precious metal…
    “I think there will be some big spikes in here and if you’re a good trader, God bless ya,” he says, adding that for him, the temptation to catch gold still doesn’t make sense.

    • Hard to understand where Yahoo finds stooges like that. His lack of understanding and knowledge of the gold market was truly astonishing. Of course, nobody there to counter his load of BS. And who the fu*k is David Nelson anyway? Never heard of Belpointe Advisors either.

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