"Huge latest week Shanghai Gold Exchange gold withdrawal figure – 62 tonnes"

[link to lawrieongold.com]

While the upwards restating on Friday of China’s gold reserve position at a much lower level than the market had been anticipating may have disappointed gold investors (China ups gold reserves at last – gold bulls disappointed and China shocks bullion market with small gold reserve increase), the latest reported volume of gold withdrawals from the Shanghai Gold Exchange (SGE) should provide counter encouragement.

We keep on reading in the mainstream media that Chinese (and Indian) gold demand is weak at the moment but this, in China at least, would seem to be belied by the recent levels of SGE gold withdrawals at what is usually a very weak time of year. And the latest figure out of the SGE for the week ended July 10th seems to have been truly exceptional for summer trading. The figure was a fraction under 62 tonnes – the eight largest weekly total ever – at a time of year when SGE withdrawals are usually at the 20-30 tonne level – bringing the total for the year to date to 1,191 tonnes. As I wrote in a recent article on Mineweb (China on track for new annual record gold deliveries), if the momentum keeps up into the usually stronger late third and fourth quarters, Chinese gold demand, as represented by SGE withdrawals, is heading for a comfortable new record exceeding the 2,186 tonnes of 2013.


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Last Edited by Uncle Fuck Stick on 07/18/2015 09:56 PM