Gold Withdrawals On The Shanghai Gold Exchange At A New Record High

For the week ending November 6, gold withdrawals from the SGE were 44.97 tonnes.  This put the YTD total withdrawals at 2,210 tonnes.  Gold withdrawals YTD from the SGE are running 29% higher than last year and 20% higher than 2013, which was a record year for withdrawals:

Untitled has compiled an excellent summary of the gold withdrawal statistics on the SGE plus some data on Central Bank holdings globally. You can read his post here: China and Gold.

China’s “consumption” of gold this year is on track to exceed the total amount of gold produced this year by mines globally.  India is on track to import close to 50% of world gold production this year.  Russia adds to its Central Bank gold holdings every month.  In June alone it added 800,000 ozs, over 23 tonnes.

On the other hand, paper manipulation of all of the markets by western Central Banks – specifically the S&P 500 and gold by the Federal Reserve – is starting to reach an insane extreme.  Today was a prime example as the S&P 500 futures spent most of the overnight session starting Sunday evening down 8-12 points.  Gold was up $12 most of the night.

As the U.S. stock market opened, gold began to get hit and the S&P 500 popped from down 8 into positive territory.  This was after extremely negative economic and earnings reports were released.  Then, as gold faded back to Friday’s closing levels, around 1:30 p.m. EST the S&P went parabolic, rising 30 points on absolutely no news or reported events that would have possibly triggered a sudden surge like this.

As it so happens, on a preliminary basis, it looks like 11,215 gold contracts were added to the Comex futures open interest tally.  This is 1.12 million paper ounces, or 74x more paper gold than the amount of gold reported to be available for delivery on the Comex.  The total paper gold to deliverable gold (as reported) is 290:1.

Given that the appetite for gold from the east exceeds the amount of gold produced to feed that appetite on a “hand-to-mouth” basis, we can only speculate as to the sources being tapped by the BIS/Fed/Bank of England/ECB to feed the gold consuming beast.

What I will say with 100% certainty is that if you want to own gold but do not have possession of it – or at least have it safekept with an extremely trustworthy custodian – you will probably never have a chance to hold that gold in your hand.  It  is gone and it if it’s not gone by now, it will be gone by the time you understand the reasons why it is gone.

The only question now in my mind is how far will the bullion banks have to stretch the paper game in order to keep the price contained and the interest from the hoi polloi in gold subdued.   If the entities holding the long positions in Comex paper do not hold the paper short-sellers accountable, what’s to stop them from taking that 290:1 up to 500:1 if they have to?

The insane degree of intervention in the markets reflects sheer desperation by the manipulators to keep the wheels on the system.  When the intervention fails, the reaction by the markets will be spectacular to watch.

16 thoughts on “Gold Withdrawals On The Shanghai Gold Exchange At A New Record High

  1. Even the Roman dictators Nero and Diocletian of Roman Empire were not enough embarrassments, compared to the lows that the West has sunk to.

    American “empire” and their fraudulent Western Europe vassal cronies are the worst despicable embarrassment, blights on humanity.

    1. When it looks like the manipulators are finished the Fed will empty another few hundred tonnes of gold into the market just like Gordon Brown did in the UK. A deliverately stated intention to tell the world he was going to sell gold into the market just to crash the price further

      The poo really hits the fan though when independent audits or if independent audits show there is none left.

    2. Well obviously not the paper whores that hold contracts until expiration and then take who knows what type of premium to go silently away. Meanwhile the Banksters play pattycake with their longs and shorts. While the regulators work their calculators to see what their payoffs will be once there terms are over.

      Sprott has said for years he won’t play on the Crimex due to his fear that the payoff will be paper instead of phys. Well Eric its past time to take one for the team here and expose the paper game if its the real scam. Let us know and maybe we can help. Otherwise Dave is right 1000:1 maybe in our future.

      The Scam goes on and the Scam goes on…..Sonny and Cher

  2. “Silver’s Mushroom Cloud” released in September 2001 excerpt—

    “All leasing stops abruptly, and all hell breaks loose in the silver market. One of the meanest hornets nests in financial history is unleashed! Bullion banking goes belly up, and several members of that occupation flee to nations without extradition treaties. Holders of short positions ride a razor blade into a pool of acid in the derivative meltdown, as they cannot conjure real silver out of thin air. By the end of the second week of the crisis, many industrial users cannot get delivery of metal, and the unbridled buying panic erupts—the sun catches on fire!”

    Herewith the world’s largest concentration of silver info and much on gold, all free access

  3. If you want to gamble go to Vegas. It is at this point the
    only place your going to get a fair deal. There is also free
    drinks and s m o k I n g chicks.
    By the way Dave, speaking of smoking chicks, nice advertising
    for the Arab dating site.

  4. China and Russia are holding aces while the mighty, exceptional USA is holding
    deuces so it’s all about timing. When does China choose to lay down their cards
    knowing full well that when they do the shit is going to hit the fan big, big time.
    The end result will probably include war because the lunatics holding the
    reins of power of American government will not give up their power and
    world’s reserve currency without a fight to the death. They are like starving
    mad dogs in every sense of the word and the world will only be a safer place
    once they are put down and no longer can create worldwide turmoil and
    chaos. When does that happen? Who knows but it can’t happen soon
    enough for the betterment of civilization.

  5. A simple question….if what certain pundits have been saying is true about tons of gold going East, (India/China), depleting Western supplies, for years now, where is all this gold going to FROM China ? Is the Chinese government withdrawing this gold from Shanghai to deposit in government vaults ? Or is this gold being used to sell to the Chinese populace. Or a combination of both. Seems strange to me.

    1. We are not “pundits.” That word connotes that the west to east movement of gold is an “opinion.” It’s not opinion it’s fact. I have written several posts discussing this subject and the on the subject of your question. Feel free to explore my past posts because you will find a definitive answer to your question about the PBOC.

      1. Editor, I’m sorry if you took the word “pundit” as an insult. I employed that word to mean a commentator on a given subject, not to mean a person who is described as a “goldbug”. Now, since I was nice to you, please return the compliment, to me, and since I am new to your site, please give me your direct answer, yes/no/maybe, to my inquiry. It would be so much easier than trying to find past posts.

  6. Editor, I thank you for your reply to the question. Since as you stated, the PBOC , does not have to source it’s gold from SGE, that doesn’t mean that there is no possibility that they won’t in secret. There is no way to determine how much gold the Chinese government has until they declare it themselves. I also understand that the Chinese government keeps all it’s domestic gold production and doesn’t market it, indeed keeps production numbers a state secret.

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