Chinese gold demand to exceed 2013 record
One could assume that with the Shanghai Stock Exchange performing as it has (up 170% in one year) that the Chinese would be buying less gold. For a couple of months we did see a reduced demand but it’s all relative and regardless they are seemingly back with a vengeance with 46 tonne withdrawn from Shanghai Gold Exchange just in the week to 14 June. 14 June is just 2 weeks from the end of the first half of the year and year to date withdrawals total a staggering 1061t. The all time record set in 2013 was 2200t for the full year so they are only 39t off the half year equivalent, something they’d ordinarily do in just one week. Its not like 2014 was any lull, as 2100t were withdrawn last year as well. The big difference with 2015 however is that India are back with a vengeance. With slight easing in their import restrictions official imports have surged and both official criminal convictions and anecdotal evidence shows smuggling is likewise. Read here for more on China and India with gold – but this year they are set to consume essentially all global production. So it would appear the Chinese are happy to play their already faltering share bull market but are keeping their insurance reserves well and truly topped up for the inevitable crash.