“This suggests that China ‘consumed’ around 2,000 tonnes of gold in 2016, which equates quite closely to the Shanghai Gold Exchange (SGE) gold withdrawals figure for the year of 1,970 tonnes . . . This would seem to confirm [Bullion Star’s Koos]Jansen’s oft-made assertion that SGE gold withdrawals are equivalent to total Chinese gold demand – a premise largely dismissed (perhaps without adequate reason) by the major gold consultancies which virtually all put Chinese demand at less than 1,000 tonnes.”
MK note: This augments my recent posts on the West to East gold pipeline. At 2000 tonnes China’s consumption equals near two-thirds of global mine production – nothing to sneeze at. China remains the dragon in the Gold Room. Lawrie Williams does a good job of outlining the China demand situation in the article above – summarizing Koos Jansen’s latest.