SGE Silver Deliveries Rising

Shanghai SGE silver deliveries are flowing again. Will silver bottom out? Buy Sotkamo or Starcore to get leverage to silver. 

China is secretly buying gold

China is secretly buying gold. 

Massive China Gold Demand

SGE gold withdrawals in China hit the second highest level ever. 

Shanghai SGE gold demand spikes

 Shanghai gold deliveries hit a yearly record high in September. 

CME Group to Launch SGE Gold Futures Contracts Today

Today the CME Group launches Shanghai gold futures contracts linked to the Chinese physical gold market.

The spread between China and the West will probably narrow and be more constant as traders can now trade the price difference between London and China. It will also bring the gold futures market closer to the real physical gold market via “Exchange of Futures for Physical” transactions (EFPs).

China is buying gold

I'm getting more and more bullish on gold, because there is evidence that China is buying. We see this both in the Chinese central bank buying of gold, the latest SGE withdrawal numbers from March (55 tonnes per week, which is very high) and also the Shanghai premium numbers.

Shanghai silver premiums are going up.



Shanghai gold premiums are going up.

China physical gold and silver demand is going through the roof

Even though the West is not interested in gold and silver (look at the low gold/silver premiums), China is buying like there is no tomorrow.

The evidence for this can be found in the SGE numbers. The latest month December 2018, SGE withdrawals were 44.5 tonnes per week, which is historically pretty high.

Also the silver and gold premiums in Shanghai are very high. Notice that the gold price is the same as in 2017, but the premium is much higher now. So that could mean gold is breaking out, because of Chinese buying.

 

 

India is also importing a lot of silver.