Tag - China

Entries feed

Tuesday, June 4 2019

Still Firing on all Cylinders: China’s Physical Gold Market

While headlines may be on the Sino-US trade war, China’s gold market continues to fire on all cylinders, with physical gold continuing to flow into, and through, the world’s largest gold hub.

Year-to-date, Chinese wholesale gold demand is on a par with recent years, Chinese central bank gold purchases have officially recommenced after a two year halt, and gold import data into China is now more transparent than ever before.

Continue reading...

Sunday, January 13 2019

Separating truth from fiction in China’s golden game of Poker

This month the Chinese central bank reported that in December 2018, its gold reserve holdings increased by 10 tonnes, the first claimed increase in Chinese monetary gold holdings since October 2016.

Based on previous patterns reporting patterns, a two year hiatus in reporting gold holdings is not unprecedented for the Chinese central bank and its reporting agency SAFE. What is strange, however, is that after an extended absence of reporting, the Chinese are coming back to the table with not a lot to show for it.

Continue reading...

Saturday, November 3 2018

CGSE’s new gold appetite

The broad market expectation is that demand for gold will only increase as China pushes ahead with its Belt and Road initiative and other nations start to benefit accordingly.

“As these countries become more affluent, they will need to buy gold for their reserves to back their currencies and economies,” Cheung says. “For that reason, we are in talks with countries along the Belt and Road corridor, and our progress in building the Asian gold hub is gaining pace.”

Continue reading...

Saturday, October 20 2018

Gold Investor - October 2018

In the past two decades China has become a dominant global force economically, commercially and, increasingly, politically. In this issue we assess the outlook for China across a range of perspectives.

Continue reading...

Friday, October 12 2018

Skepticism reigns about the True state of Chinese central bank gold reserves

One of the most mysterious and unresolved questions in the gold world centers on how much gold reserves the Chinese State, through the Chinese central bank, actually holds. Since October 2016, the People’s Bank of China (PBoC), China’s central bank, has continued to announce unchanged gold reserves each month and persistently claims that its official gold reserves remain static at 1842 tonnes.

Continue reading...

Friday, July 27 2018

China's June net gold imports via Hong Kong jump to 15-month high

Imports via Hong Kong, by the world’s top consumer of the metal, rose to 80.867 tonnes in June from 57.649 tonnes in May according to data provided to Reuters by the Hong Kong Census and Statistics Department.

Continue reading...

Friday, July 20 2018

Chinese Gold Market: Still in the Driving Seat

With the first half of 2018 now behind us, it’s an opportune time to look at whats been happening in the Chinese Gold Market. As a reminder, China is the largest gold producer in the world, the largest gold importer in the world, and China’s Shanghai Gold Exchange is the largest physical gold exchange in the world.

Continue reading...

Wednesday, February 28 2018

Hong Kong gold exchange seeks to create gold trading corridor along Belt and Road

The Chinese Gold & Silver Exchange Society (CGSE), Hong Kong’s gold exchange, is in talks with Singapore, Myanmar and Dubai to establish a gold commodity corridor to promote yuan-denominated products under China’s Belt and Road Initiative, according to its president Haywood Cheung Tak-hay.

The proposed bonded warehouse in Qianhai free-trade zone, near Shenzhen, capable of storing 1,500 tonnes of gold, is expected to provide custodial and physical settlement services, and is likely to materialise in the next two to three months after receiving the verbal green light from the customs department recently, Cheung added.

Continue reading...

Wednesday, February 7 2018

China’s Love Affair With Gold Heating Up on Property Riches

China’s growing throng of affluent consumers is driving a rebound in demand for gold rings, bracelets and necklaces as a property boom and high stock market valuations boost wealth in the largest bullion market.

Continue reading...

Friday, February 2 2018

China's 2017 gold consumption rises 9.4 pct to 1,089 tonnes

Gold consumption in China grew by 9.41 percent from the previous year to 1,089 tonnes in 2017, state television CCTV reported on Thursday, citing figures from the China Gold Association.

Gold output in China, the world’s largest producer of the metal, fell by 6.03 percent from the year before to 426.14 tonnes in 2017, CCTV said.

Continue reading...

Tuesday, November 14 2017

China Gold Import Jan-Sep 797t. Who’s Supplying?

Until new evidence shows up my best guess is that China net imported 777 tonnes in the first nine months of 2017, sourced from all corners of the world: the UK, South-Africa, Australia, Switzerland, the US, Middle-East and Philippines. It seems Chinese banks are active all over the world looking to buy gold on the dips. Snapping up physical metal when the time is right.

Chinese imports add to China’s domestic mining output. The China Gold Association disclosed on November 1 that mine production accounted for 313 tonnes, down 10 % compared to last year. Nearly all this gold (313 + 777) is sold through the SGE. Withdrawals from the vaults of the SGE accounted for 1,505 tonnes over this period, implying 415 tonnes (1,505 – 313 – 777) was supplied by scrap and disinvestment (or partially recycled through the SGE system).

Since all non-monetary gold imported and mine production ends up in the private sector, my estimate for total gold owned by the Chinese people now stands at 16,575 tonnes. Added by a more speculative estimate of 4,000 tonnes held by the PBOC makes 20,575 tonnes.

Continue reading...

Thursday, November 2 2017

Chinese gold demand up over 15% YTD

According to the Association consumption of gold bars went up 44.45% to 222.07 tonnes, while that for gold jewellery rose 7.44% to 503.87 tonnes with total consumption up 15.49% to 815.89 tonnes suggesting an annual total of well above 1,000 tonnes given demand tends to pick up ahead of The Chinese New Year.

Continue reading...

Tuesday, October 31 2017

Petro-yuan: China wants to dethrone dollar, RMB-denominated oil contracts

China is the world's top oil importer, and so Beijing sees it as only logical that its own currency should price the global economy's most important commodity. But beyond that, moving away from the dollar is a strategic priority for countries like China and Russia. Both aim to ultimately reduce their dependency on the greenback, limiting their exposure to U.S. currency risk and the politics of American sanctions regimes.

The plan is to price oil in yuan using a gold-backed futures contract in Shanghai, but the road will be long and arduous.

Continue reading...

Monday, October 16 2017

Shanghai Gold Exchange gives a fillip to China’s global aspirations

Positioning itself for global pricing, the exchange aims to find price discovery among its members, local or foreign, who are either buying or selling physical gold.

As SGE is primarily a physical market, it suggests that its pricing will represent a true balance of supply and demand, industry observers said.

Continue reading...

Saturday, October 14 2017

China Launches Yuan-Ruble Payment System

At the time, Vladimir Shapovalov, a senior official at the Russian central bank, said the two central banks were drafting a memorandum of understanding to solve technical issues around China’s gold imports from Russia, and that details would be released soon, to which we said that If Russia - the world's fourth largest gold producer after China, Japan and the US - is indeed set to become a major supplier of gold to China, the probability of a scenario hinted by many over the years, namely that Beijing is preparing to eventually unroll a gold-backed currency, increases by orders of magnitude.

Continue reading...

Wednesday, October 4 2017

China proven gold reserves at 12,100 tonnes at end-2016

China’s proven gold reserves reached 12,100 tonnes at the end of 2016, the state news agency Xinhua reported on Monday quoting an official with the national gold association.

China has been the world’s biggest gold producer for 10 years and the largest consumer of the metal for four years, it said. China aims to increase its annual gold output to 500 tonnes by 2020 from around 450 tonnes currently, it said.

Continue reading...

Friday, September 22 2017

My Views Regarding Prospects for Gold

The Chinese have announced that they have perfected a scheme, to be launched formally in the market by the end of the year, by means of which exporters of oil to China will accept the Chinese currency, the Yuan, in payment for the oil; for this deal, the Chinese have added an incentive: the Yuan received by the oil exporters will be exchangeable for gold. This gold will be "sourced" i.e. "purchased" outside of China, for the oil exporters.

Thus, the oil exporters' Yuan will be offered in payment to the so-called "Bullion Banks" in London, who will provide the gold in exchange for Yuan.

Continue reading...

Sunday, August 13 2017

The Mechanics Of The Chinese Domestic Gold Market

The Chinese gold market is the world’s largest physical gold market. It is also one of the world’s most protected gold markets given that the importation of gold into China is still strictly controlled by the Chinese authorities, and the exportation of gold out of China is generally prohibited.

Hence, the market is often referred to as the Chinese ‘domestic’ gold market since gold flows and gold trading in the market are predominantly domestic in nature. Despite these trade restrictions, China still manages to be the largest importer of gold in the world. Furthermore, the Chinese gold mining sector is also the largest producer of gold in the world.

Continue reading...

Sunday, July 30 2017

China's first-half gold output falls, consumption up

China's gold output fell by 9.85 per cent from a year ago to 206.542 tonnes in the first half of 2017, state media said on Friday, citing data from the China Gold Association.

The country's consumption, however, was up by 9.89 per cent to 545.23 tonnes over the same period, said the People's Daily, leading to higher imports by the world's top gold consumer as indicated by data out of Hong Kong on Thursday.

Continue reading...

Estimated Chinese Gold Reserves Surpass 20,000t

My best estimate as of June 2017 with respect to total above ground gold reserves within the Chinese domestic market is 20,193 tonnes. The majority of these reserves are held by the citizenry, an estimated 16,193 tonnes; the residual 4,000 tonnes, which is a speculative yet conservative estimate, is held by the Chinese central bank the People’s Bank of China.

Continue reading...

- page 1 of 4