In 2013 the we’ve experienced what kind of extreme buying power China is able to unleash on the physical gold market. Chinese wholesale demand in 2013 was 2197 tons, this excluded PBOC purchases. While the mainstream media is still absolutely clueless on what actually happened and how much gold was distributed across the globe, the facts aren’t that hard to summarize. Let’s have a look at the facts, supplemented with commentary by yours truly.
As most countries disclose their gold trade numbers, by analyzing these numbers we could see a clear gold vein running from the vaults of the Bank of England (BoE) in London to the 55 vaults of the Shanghai Gold Exchange (SGE) in China mainland. This main vein ran through Switzerland and Hong Kong.
The UK net exported 1425 tons of gold in 2013, of which 152 tons net to the United Arab Emirates, 145 tons net to Hong Kong and 1329 tons net to Switzerland. In December total net export was 62 tons, up 68 % from November, while net export to Switzerland dropped to 52 tons. Net export (directly) to Hong Kong was 29 tons.
In 2013 GLD’s inventory dropped by 552 tons.
Switzerland has never traded and refined as much gold as in 2013; gross import was 3082 tons and gross export 2786 tons.
Hong Kong gold trade also broke all records. Net gold import jumped 1500 % from 37 tons in 2012 to 597 tons in 2013. Gross import in 2013 accounted for 2239 tons up 133 %, gross export 1642 tons up 78 %.
Source In Gold We Trust