China SGE August gold deliveries phenomenal
“August is always a weak month for physical gold moving through China’s Shanghai Gold Exchange – or rather it has been up until now. The big months for SGE withdrawals are normally at the beginning and the end of the year ahead of The Chinese New Year holidays, while trading in the summer months is usually thin.
But not this year! Gold moving through the Exchange this August has totalled a phenomenal 301.96 tonnes bringing the year to date total to 1,718.2 tonnes, some 219 tonnes more at the same time of year than in 2013 when China consumed a record amount of gold by even according to the consistently much lower consumption estimates by the major precious metals analytical consultancies. . .
If SGE withdrawals continue at the average rate recorded so far this year, full year deliveries though the Exchange would come to around 2,580 tonnes – and this is certainly not an impossibility given that demand during the final quarter of the year usually runs strong. This figure is equivalent on its own to around 80% of global annual new mined supply at present.”
MK note: The impressive China gold saga continues. Much of this new demand has come, as we predicted in a Special Report back in July, the result of the Shanghai stock market meltdown. The Chinese people continue to accumulate physical metal and, as James Rickards points out in the interview linked below, so does the Chinese government. For those tempted to think that China’s interest in gold might be fleeting, the July Special Report will serve as an eye-opener.