Koos Jansen
BullionStar Blogs
Koos Jansen
Posted on 26 Jan 2014 by

Week 3, 2014 Withdrawals From SGE Vaults 60 Tons, YTD 159 Tons

Again an astounding trading week on the SGE; from January 13 – 17, 2014 physical withdrawals from the SGE vaults accounted for 60 tons of gold, year to date 159 tons. Although withdrawals are down 25 % from the previous week, the amount is still well above weekly global mine production.

This strong demand could be related to the Chinese Lunar year, which is celebrated on January 31, 2014. SGE withdrawals in the first three weeks were up 60 % compared to the same period in 2013.

A friend of mine who is traveling through Asia at the moment sent me a text message yesterday, it stated:

On three separate occasions I met with Chinese men who told me with a big smile China is buying A LOT of physical gold with printed dollars, they don’t understand why the rest of the world is just watching this happening. These people are positive the price of gold is going to rise substantially.

Overview SGE data 2014 week 3

– 60 metric tonnes withdrawn in week 3, 13-01-2014/17-01-2014
– w/w  – 25 %, y/y + 98 %
– 159 metric tonnes withdrawn year to date

Sources: SGEUSGS

My research indicates that SGE withdrawals equal total Chinese gold demand. For more information read thisthisthis and this.

Shanghai Gold Exchange withdrawals 2014 week 3

This is a screen dump from Chinese SGE trade report; the second number from the left (本周交割量) is weekly gold withdrawn from the vault, the second number from the right (累计交割量) is the total YTD.

Shanghai Gold Exchange gold withdrawals week 3 2014

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

Shanghai Gold Exchnage gold 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.

Shanghai Gold Exchange premiums week 2 & 3 2014

 

SGE foreign exchange gold system

Koos Jansen
E-mail Koos Jansen on:

  • Trust in Gold too

    Thank you for your great work. I am following it closely. But I have one question though. The withdrawals from Shanghai are not equal to the imports, since any gold being sold within China (which surely mus happen, too) needs to be recycled through Shanghai? If that is so one would have to estimate the amount of recycling, deduct it from the total Shanghai numbers in order to arrive at the true import numbers.

    Is my reasoning correct?

  • Chris

    Can anyone get access to the SGE website? I have not been able to for about a week.

    • In Gold We Trust

      Replace “.sh” by .com.cn”

  • rowingboat

    Koos, just noticed your twitter comment. According to this blog, deliveries were 57 tonnes for week ending Jan 24:

    http://www.goldminerpulse.com/v/shanghaiGoldExchangePhysicalDelivery.php

Copyright Information: BullionStar permits you to copy and publicize blog posts or quotes and charts from blog posts provided that a link to the blog post's URL or to https://www.bullionstar.com is included in your introduction of the blog post together with the name BullionStar. The link must be target="_blank" without rel="nofollow". All other rights are reserved. BullionStar reserves the right to withdraw the permission to copy content for any or all websites at any time.