West To East Gold Distribution Update
The great distribution of wealth and power, facilitated by gold, from west to east is still going strong. From looking at available global trade numbers we know the main gold vein runs from the UK through Switzerland, through Hong Kong, eventually reaching Shanghai. Let’s take a look at the latest data.
Starting Point: The London Gold Vaults
It started in January when the UK, home of the London Gold Market, net exported 74 tons of gold to Switzerland. As we can see in the chart below this is not unusual, we saw similar events in the beginning and in the end of 2011. But this year export accelerated to a spike May, in which 237 tons were net exported to the Swiss. A staggering amount of gold, nearly as much as the official gold reserves of the Bank Of England. Through the summer these exports remained elevated, year to date the UK has net exported 1235 tons of gold in total, of which 1109 tons to Switzerland.
In September the UK net exported 117 tons of gold, down from 119 tons in august, – 1.7 % m/m. Net export to Switzerland was 107 tons in September, up from 98 tons in August, + 9.1 % m/m. This implies we have not seen the end of the gold exodus from the UK.
|note “Unallocated Accounts"|
Remelting The Gold Bars In Switzerland
Transit Port Hong Kong
Most (but certainly not all!) gold that is imported by China mainland comes in through Hong Kong. Year to date Switzerland has net exported 697 tons of gold to Hong Kong. A surge of 445 % if we measure just the first three quarters relative to 2012 totals.
Net export from Hong Kong to the mainland is 826 tons of gold year to date.
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