Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Gain About 1%
By: Chris Mullen, Gold Seeker Report

Northern Vertex Files Preliminary Economic Assessment Report for the Moss Gold Mine in NW Arizona
By: Northern Vertex Mining Corp.

Does The CoT Structure Prohibit A Rally?
By: Craig Hemke

Harry Dent’s Gold Prediction Invalidated
By: Przemyslaw Radomski, CFA

SELLING OUT OF PRECIOUS METALS AND BUYING BITCOIN…. Very Bad Idea
By: Steve St. Angelo

The Bitcoin Bubble Explained in 4 Charts
By: Jake Weber

VXX Sends an Awesome Message from Another Galaxy
By: Rick Ackerman

Geopolitical Risk Highest “In Four Decades” – Gold Demand in Germany and Globally to Remain Robust
By: GoldCore

Asian Metals Market Update: November-22-2017
By: Chintan Karnani, Insignia Consultants

Gold Seeker Closing Report: Gold and Silver Gain With Stocks
By: Chris Mullen, Gold Seeker Report

 
Search

GoldSeek Web

 
SGE Withdrawals 51t In Week 10, YTD 508t.


 -- Published: Friday, 20 March 2015 | Print  | Disqus 

By Koos Jansen

https://www.bullionstar.com/

Withdrawals from the Shanghai Gold exchange (SGE), which equal Chinese wholesale gold demand, in week 10 (March 9 – 13) accounted for 51 tonnes. Year to date total withdrawals have reached 508 tonnes.

Screen Shot 2015-03-20 at 10.29.49 AMScreen Shot 2015-03-20 at 10.29.29 AM

Chinese wholesale gold demand can be slightly less than what is disclosed because of withdrawals from the Shanghai International Gold Exchange. My best estimate is SGE withdrawals could be 3 tonnes less at 505 tonnes. However, I have no hard evidence any foreign traders are withdrawing gold from the Shanghai International Gold Exchange. I’ve made an inquiry at the SGE if they can shed some light on this. Hopefully, next week I know more.

Shanghai Gold Exchange SGE withdrawals delivery 2015 week 10 dips

Shanghai Gold Exchange SGE withdrawals delivery only 2014 - 2015 week 10

Week 10 was a clear example of a falling gold price in renminbi, which spurred the Chinese to purchase gold at the SGE and subsequently withdraw from the vaults.

BullionStar has a new unique feature online; a chart widget to measure anything in anything (stock indexes, precious metals, fiat currencies, commodities and stocks). For example Gold in Euros, the S&P 500 in Crude Oil, or US dollars in Renminbi. The next screenshot is an example of the price of gold in renminbi in week 10, 2015.

Screen Shot 2015-03-20 at 3.11.18 PM

Click here to use the widget!

Because of the mechanics of the Chinese gold market,

Import + mine + scrap = SGE withdrawals

And thus

Import = SGE withdrawals – mine – scrap

Over the first ten weeks in 2015 domestic mine supply has been roughly 85 tonnes, SGE scrap supply (at a yearly rate of 250 tonnes) approximately 45 tonnes.

508 withdrawals – 85 mine – 45 scrap = 378 import

From January 1 until March 13, in just over months, China has imported an estimated 378 tonnes.

A rough estimate suggests SGE withdrawals are set to reach 600 tonnes in Q1; net import 450 tonnes, domestic mining 100 tonnes and scrap (gold-for-gold and gold-for-cash) 50 tonnes. Depending on what metric used, Chinese gold demand will be somewhere in between 570 and 600 tonnes. Let’s wait what the World Gold Council (WGC) will publish as Chinese gold demand Q1. Probably about half of this, just like they did last year.

While the WGC is understating Chinese gold demand, it’s allegedly overstating Vietnamese gold demand. I came across an article titled; Experts doubt WGC’s report on Vietnam’s gold consumption:

VietNamNet Bridge – The World Gold Council (WGC) has reported that Vietnam consumed 69.1 tons of gold in 2014. However, Vietnamese experts disagree with that assessment.

“It is unclear where WGC sought information to make report. But I can say for sure that the total revenue of all Vietnamese gold companies could not make up such a figure,” he said.

Trong said a large jewelry company needs about 200 kilos of materials a month to make jewelry.

The number of large jewelry companies can be counted on one hand or two, and the actual volume of gold materials is not high.

Other goldsmith shops mostly process finished products they buy from customers, and do not have demand for gold materials.

“12.7 tons of jewelry gold consumed in 2014 was reasonable, if counting the jewelry illegally imported from China. The jewelry market last year was very gloomy,” he noted.

“The remaining 56.4 tons of gold was listed as bullion gold for investment. However, it’s unclear where the imported bullion gold has gone,” he said.

Koos Jansen
E-mail Koos Jansen on: koos.jansen@bullionstar.com


| Digg This Article
 -- Published: Friday, 20 March 2015 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2017



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.