Chinese Gold Rush? Demand Exceeds Global Mine Production For Third Week

February 3rd, 2014 by


China gold expert Koos Jansen reports that weekly physical gold withdrawals at the Shanghai Gold Exchange has exceeded global gold mine production for the same time frame, for the third straight week. Like the COMEX and LBMA, once gold is taken from the Shanghai Gold Exchange, it is not allowed back in until it has been remelted, recast, and re-assayed, to prevent any monkey business. Physical gold withdrawals at the SGE is seen as an accurate proxy for Chinese physical bullion demand.

Jansen notes that at this pace, January 2014 will probably set an all-time record for monthly withdrawals at the SGE, and wonders, “Is this the height of the Chinese gold rush?”