Friday, October 12 2018
By GCRU Gold News on Friday, October 12 2018, 21:49
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.
Friday, July 27 2018
By GCRU Gold News on Friday, July 27 2018, 04:00
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.
Friday, July 20 2018
By GCRU Gold News on Friday, July 20 2018, 06:32
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.
Wednesday, February 28 2018
By GCRU Gold News on Wednesday, February 28 2018, 00:12
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.
Wednesday, February 7 2018
By GCRU Gold News on Wednesday, February 7 2018, 01:54
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.
Friday, February 2 2018
By GCRU Gold News on Friday, February 2 2018, 01:42
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.
Tuesday, November 14 2017
By GCRU Gold News on Tuesday, November 14 2017, 23:02
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.
Thursday, November 2 2017
By GCRU Gold News on Thursday, November 2 2017, 00:49
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.
Tuesday, October 31 2017
By GCRU Gold News on Tuesday, October 31 2017, 21:53
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.
Monday, October 16 2017
By GCRU Gold News on Monday, October 16 2017, 12:50
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.
Saturday, October 14 2017
By GCRU Gold News on Saturday, October 14 2017, 00:54
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.
Wednesday, October 4 2017
By GCRU Gold News on Wednesday, October 4 2017, 00:14
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.
Friday, September 22 2017
By GCRU Gold News on Friday, September 22 2017, 00:03
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.
Sunday, August 13 2017
By GCRU Gold News on Sunday, August 13 2017, 04:49
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.
Sunday, July 30 2017
By GCRU Gold News on Sunday, July 30 2017, 00:57
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.
By GCRU Gold News on Sunday, July 30 2017, 00:54
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.
Tuesday, June 6 2017
By GCRU Gold News on Tuesday, June 6 2017, 23:25
Mainland China is set to import about 1,000 metric tons from the territory in 2017, said Haywood Cheung, president of the century-old exchange in Hong Kong which trades physical gold and silver. That compares with net purchases of 647 tons last year and would be the biggest since 2013, data from the Hong Kong Census and Statistics Department compiled by Bloomberg show.
Thursday, May 18 2017
By GCRU Gold News on Thursday, May 18 2017, 02:17
Year-to-date, which now includes the first four months of 2017, SGE gold withdrawals have reached 727 tonnes, which annualized equals 2181 tonnes, and would make 2017 the 3rd highest SGE vault withdrawal year on record, and only slightly behind the 2197 tonnes of registered withdrawals from the Exchange’s vaults in 2013. And since SGE gold withdrawals are a suitable proxy for wholesale Chinese gold demand, it would point to 2017 shaping up to be one of the strongest years ever for physical gold demand in the Chinese gold market.
Friday, May 12 2017
By GCRU Gold News on Friday, May 12 2017, 00:38
The growing influence of the Shanghai Gold Exchange (SGE), the world’s largest physical gold exchange, is a topic familiar to many. So it is not surprising that trading volumes at the SGE continued their dramatic rise in 2016, with a record 24,338 tonnes of gold traded across physical delivery and deferred settlement contracts.
Volumes in 2016 were a staggering 43% higher vis-a-vis the 17,033 tonnes traded on the SGE during 2015, which itself was a strong year, since 2015 volumes were 84% higher than the 9,243 tonnes of gold traded at the Exchange in 2014.
Therefore, in the space of three calendar years, the SGE has seen total trading volumes nearly triple, which is quite an achievement by any standard.
Saturday, April 8 2017
By GCRU Gold News on Saturday, April 8 2017, 03:44
In top consumer China, premiums were around $10 to $12 per ounce against the international benchmark, up from last week's to $8 to $10.
Premiums in China had risen early this month as traders said supplies of the precious metal were limited due to tightening import restrictions to stem currency outflows.