World gold flows and demand - from SGE, GLD, Swiss refiners, Central Banks
roadrunner
Posts: 28,303 ✭✭✭✭✭
Interesting that while GLD inventory has been declining recently, gold has been rallying. Chinese-Indian demand over the past 9 years has totaled 22,000 tonnes of gold. That's where most of the gold from the west has been flowing. No one has the heart to tell them it's just a barbarous relic. On average, 0.04% of Comex gold contracts stand for delivery. On the Shanghai Gold Exchange 45% of contracts settle for delivery (155 tonnes in June). Comex only has 22 tonnes registered for potential delivery. Clearly, that's a paper-trading exchange while the SGE can actually be analyzed for true physical spot pricing supply/demand.
https://www.bullionstar.com/blogs/gold-market-charts/gold-market-charts-july-2017/
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IS the price of gold different on the SGE than on Comex?
Knowledge is the enemy of fear
Isn't this mostly paper exchanges? Does physical gold actually move in these major contracts? I know 'people' buy physical gold, however, when discussing contracts of 'tonnes' isn't it just a paper transfer? Cheers, RickO
The 155 tonnes was the total of the contracts in June if I read that right. When countries like Russia, China, India etc. are mentioned they are likely taking in physical metal.
The Shanghai Gold Exchange is moving significant real gold on delivery....at about a 45% clip to the contracts made. Compare that to the Comex (0.04%) and LBMA which are indeed paper exchanges to "manage" the price of gold. That was the whole purpose of forming the SGE several years back.
roadrunner's new avatar will take some getting use to. How long did you use your old one?
Where there are exchanges, there are contracts for delivery. The market is alive and well . Nothin just sits there.
Not all contracts for delivery result in delivery. RR's percentages show the CRIMEX and LBMA are in business to control the price, not the sale, of the real stuff. This low percentage should be all the proof that one needs that price is controlled.
"Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey
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Knowledge is the enemy of fear
The Sky Brothers will come for the gold, good thing They ( those who hold it for the S Bs) keep such good track of where it is and how much of it they have. Of course, the Sky Brothers bred Them to do this, so it's not really as if They have a choice about the matter.
Liberty: Parent of Science & Industry
The funnest thing of all? We who instinctively hoard gold actually believe it's our free will to do so! We actually think we are deciding to be smart, and feel superior to those with a smaller dose of this genetic drive to mine, process, and store this metal. Isn't that amusing? Oh, those sky brothers, well, at least they are kind to us and have a keen sense of humor.
Liberty: Parent of Science & Industry
I can't wait to meet the sky sistas!!!
Knowledge is the enemy of fear
It's all about the nickel and dime.
15 yrs on the old one. Just changed it last week....from seated half drawing to an actual seated quarter I once owned. It's taking some time for me as well. I didn't think there would be that much difference....and there is.
I note that throughout history, invading armies almost never go for the vaults full of paper fiat and electronic account balances, but somehow the gold always seems to be taken.
I knew it would happen.
Why can't someone answer this?
Knowledge is the enemy of fear
That sounds like yet another reason not to have all of one's money in the form of gold.
Liberty: Parent of Science & Industry