Another 54 tonnes of gold withdrawn from the Shanghai Gold Exchange
By Duncan Richardson, News Editor
02 Dec 2015
Withdrawals from the Chinese Shanghai Gold Exchange (SGE) are at all-time highs. Furthermore, the rate of withdrawals are accelerating as Chinese consumers take advantage of latest take down of the gold price. Year to date 2,313 tonnes have been withdrawn which equates to 80% of annual total mine production. The SGE is China’s gold trading platform which deals primarily in the trading physical bullion. Typically the withdrawn gold is sold to wholesalers and then onto retailers and consumers.
Withdrawals spiked in the summer with over 60 tonnes leaving the exchange every week. Demand then dropped back to 40-50 tonnes a week in September and early October before rising again in recent weeks. Historically, withdrawals rise in December as jewellers and fabricators stock up a head of the Chinese New Year.
With 80% of the worlds mine production being sold through the SGE, it begs the question where the gold is coming from?
Despite this demand the gold price has fallen 7.23% year to date and currently trades at £710.04 per ounce.