Koos Jansen
BullionStar Blogs
Koos Jansen
Posted on 29 Dec 2013 by

SGE delivery 16-20 December 55 Tons, 2128 Tons YTD

In the end stage of 2013, in between 16 – 20 December, the “Chinese Aunties” have withdrawn 55 tons of gold from the vaults of the Shanghai Gold Exchange.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.

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– 55 metric tonnes withdrawn in week 51 (underlined in blue two images below), 16-12-2013/20-12-2013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.

Source: SGEUSGS

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This is a screen dump from Chinese SGE trade report; the second number from the left (本周交割量) is weekly gold withdrawn from the vault, the second number from the right (累计交割量) is the total YTD.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 SilverDoctors.com 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The Doc states correctly that in between 9 and 13 December 2013 there were 50 tons of gold withdrawn from the SGE vaults (look a few images up at the screen dump from the Chinese SGE weekly report, I drew a green line under this amount of withdrawals). The Doc also states there has been roughly 2100 tons of gold withdrawn year to date which equals Chinese demand according to the PBOC (underlined in red).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 an 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 (or my blog) that publishes how much physical gold actually leaves the vaults and tells us a lot about Chinese demand.

On a second note the title of the podcast bears a false statement. In week 50 (nor 51) there has not been 57 tons of gold being withdrawn from the vaults of the Shanghai Gold Exchange.

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

Happy new year!

Koos Jansen
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  • 24 carat

    Let us focus on the reason why the East continues accumulating goldmetal-wealth-reserve and the West has forgotten what gold’s purpose is. The East is increasingly producing real -wealth- whilst the West fabricates financial volume, to be considered as (pseudo) wealth. Reich finance (financial capitalism with deficit-o-mania) !
    The production of surplusses (East) versus debt-driven economy (West). All wealth producers want to consolidate that wealth in an universal tangible (everlasting) store of wealth. Westerners have been brainwashed on the notion of wealth.The easy cheap Greenspan money is now considered (generally accepted) as pseudo-wealth. The twitter en altercoins industries…The Goldman Sachs manias…
    One day, the PBoC will copy the ECB’s gold-wealth-reserve concept by adding gold to their balance sheet. Not as a currency -backing- or whatever new currency redeemable gold-standard, but as a 100% official goldmetal-wealth-reserve.
    The $-regime has already lost its gold-wars !

    • In Gold We Trust

      Thanks for your valuable comments!

  • 24 carat

    The West’s pseudo wealth is increasingly a FICTION. Because the manipulative financial industry is MARKING everything to FICTION and not to MARKET reality anymore ! This addiction is best reflected in the fixed UST goldprice fiction of $ 42,22/oz.
    * Fiction * is a truth one beliefs in. Asians continue to belief in real tangible wealth. They don’t want paper gold with a manipulated fictional price. The ECB’s gold concept is MARKED TO MARKET, because the ECB/BIS know that the Western pseudo-wealth fiction is running out of steam because of the crescendo debt-o-mania.
    Real FREE markets will come back with a vengeance. The financial industry is postponing this for as long as it can. Everything is now marked to a manipulated/falsified non market price, representing nothing valuable. The East is anticipating this fatal moment of truth. They don’t care about the falsified goldprice and have only the known FREEGOLD VALUE in mind.
    That’s why goldmetal value is shifting from West to East for as long as the West continues marking its pseudo wealth to fiction and can avoid the dramatic consequences of this failing mismanagement..
    Don’t trust the fictional value of debts and deficits,…and the management of this fiction ! Put your faith in the value of goldmetal and the evolution towards the FREEGOLD market. One day the UST/FED will have to abandon it’s $42,22/oz fixed goldprice fiction and mark its goldreserves to the real goldmarket-valuations.

  • Albert

    I have to say thanks to your good work. Please keep posting these SGE delivery charts!

  • unwired

    News of rising imports sure doesn’t seem the generate any price strength…. however there’s no trouble creating weakness with this kind of news report.
    What do you make of this? Does it it corroborate with your SGE data?
    http://www.scmp.com/business/commodities/article/1393461/chinas-gold-imports-drop-42pc
    Thanks

    • In Gold We Trust

      China also imports gold through other ports than Hon Kong

      • unwired

        I know… but that doesn’t answer the question.

        • In Gold We Trust

          The lower the price, the higher SGE deliveries. Is that an answer?

          • unwired

            I’m asking whether you think the Reuters report that gold imports were down 42% last month is accurate. What is this HK Census and Stats data? I think I understand that you are saying its only a subset of what you see passing though the SGE. Seems to me you have indicated that SGE supply/demand numbers remain elevated and very robust. If HK as dropped off by 42% last month… I assume its been made up for by other sources? Sure seems like everyone in the mainstream is anxious to report any statistic that supports the appearance that eastern demand for gold is waning.

          • In Gold We Trust

            I think the HK gold data is accurate. I can Check it myself in week though..
            Correct import must have been made up via other channels, as weekly delivery is still crazy (50+ tons). Maybe directly from the Swiss, who knows what weak hands are still out there.. In my experience the mainstream is very pleased to notify us eastern demand is waning.. (although it isn’t)

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