Shanghai Gold Exchange flags big moves

Analyst Koos Jansen (of GATA) studies the SGE more than most as he has shown it is the most accurate source of Chinese demand (even more so from June this year when gold imports can officially come direct to Beijing rather than Hong Kong who report figures; Beijing won’t).  The latest figures are staggering for both gold and silver.  YTD gold demand has already reached 694t which annualises to 2004t!  In silver, premiums have risen to over 5%, futures are in backwardation (which occurs – simply - when supply is so short people will pay more to hold then trust future availability), and just between 28 Feb and 9 May physical silver inventory dropped by a whopping 57% to only 249t.  For more on what’s happening in silver world wide right now we’ve posted an excellent article today.