Chinese Physical Gold Demand YTD 369 tons, Up 51 % Y/Y!

Caption Contest 1The Shanghai Gold Exchange (SGE) is back on schedule publishing their trade reports on that cover the previous trading week. Last Friday’s report covered the trading week February 17 – 21. For me the most important numbers is always the amount of physical gold withdrawn from the vaults as this equals Chinese wholesale demandWithdrawals in week 8 (February 17 – 21) accounted for 49 tonnes, year to date there have already been 369 tonnes withdrawn from the vaults. If we divide the later by the number of days of the corresponding period (52) we come up with an average demand of 7.09 tonnes per day – this includes weekends and the one week holiday at Lunar year when the SGE was closed.
One would think that in coming months the price of gold and Chinese demand will get in conflict; the situation simply can’t go on like this forever. [Read more...]

Chinese “People Are Buying Gold Like Groceries”

Chinese aunties buyng gold for sale in TaiyuanWeekly Chinese Gold Demand Transcends Global Mining Production, Again.
All over the media we have seen extreme gold shopping sprees around new year and at the Lunar year in China.
This resulted in an all time Chinese gold demand record in January – which accounted for 246 tons.
It seems the Chinese are in a state to buy all the physical gold that can be supplied.

These two photos were taken yesterday by my uncle in a gold shop in Beijing. People are buying gold like groceries
[Read more...]

Chinese Gold Rush Is Heating Up!

china goldIn the trading week from January 20th-24th, 57 tons of physical gold were withdrawn from the SGE vaults!
This is the third week in a row SGE withdrawals have been more than weekly global mine production.
In the first 24 days of 2014 withdrawals from the SGE accounted for 216 tons. With one trading week left this month it’s very likely January 2014 will break the all time record of monthly withdrawals, surpassing the 236 tons from April 2013.
Are we witnessing the height of the Chinese gold rush? [Read more...]

The Western Gold Bull Market is Dead. Long Live the Asian Gold Bull Era!

April 12, 2013 was the beginning of a two day “super-crash” in the gold market.
In my professional opinion, the gold bull market ended on that day.

The world changed on April 12, 2013, because the Western gold bull market ended, and the Asian gold bull era began. [Read more...]

“Tug of War” in Gold as Asians Buy Physical and ETF Investors Sell

tugofwarOutflows from the world’s biggest gold exchange traded fund, the SPDR Gold Trust (ticker: GLD), continued yesterday for the eleventh day running, taking the total volume of gold held to back GLD shares to its lowest level since November 2011.
“It is really a tug of war between ETF selling and physical buying right now,” says Yuichi Ikemizu, head of commodity trading, Japan, at Standard Bank.   “We have seen quite good physical demand from China and Southeast Asia, but the ETF selling has put a lid on gold prices.” [Read more...]

Shanghai Gold Exchange Volume Soars to Record As Asia Stacks the Smack

imagesGold volumes for the benchmark cash contract on the Shanghai Gold Exchange soared to a record today, as the market re-opened after the New Year’s week long holiday and bargain hunters started buying.

The volume for bullion of 99.99% purity exceeded 22,000 kilograms (22 metric tons), according to data compiled by Bloomberg. Prices fell 2.8% to 327.25 yuan/gram ($1,630.29/oz) as of 5:04 p.m. Singapore time.

Chinese investors returned to the market today after the holiday, and the slump in gold prices in the past week provided great incentive for buying as many Chinese are still holding a bullish outlook on gold,” Qu Mingyu, a trader at Bank of China Ltd., the 4th largest lender by assets, commented today.  The return of demand in Asia was not limited to China as demand in India was also seen overnight. [Read more...]