| Shanghai Gold Exchange Withdrawals Point to Strong Chinese Demand | |
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Current Macro Factors Driving Gold and Silver Prices (Continued from Prior Part) Shanghai Gold Exchange
China is the number one gold consumer. That’s why it’s vital for gold investors to track the demand in China. In this part of the series, we’ll learn about how withdrawals from the Shanghai Gold Exchange are progressing. This indicator points toward the underlying gold demand in the country.
Chinese (FXI) gold withdrawals from the SGE (Shanghai Gold Exchange) are the best indicator available of China’s demand for physical gold. All of the mined and imported gold in China can only sell through the SGE. By tracking the data, investors can get a good idea of the short-term direction of Chinese demand.
Withdrawals are strong
In the week ended June 19, a total of 54.2 tons of gold was withdrawn from the SGE. Year-to-date, withdrawals are a hefty 1,115.8 tons—up a whopping 21.3% from the same period last year. Now that the peak festive season is over, Chinese gold withdrawals can’t be compared with the levels reached in January or February. But for the time of year, they’re very strong.
Although this shows continued strong demand for physical gold in China, investors need to consider that the gold withdrawals could come from any of three sources:
- imports
- recycled gold
- domestic production
Historically, China’s and India’s physical-gold buying have boosted gold prices. Strong withdrawals from the SGE should support gold prices (GLD). This also helps gold stocks including Agnico Eagle Mines (AEM), AngloGold Ashanti (AU), and Royal Gold (RGLD). It also affects the Market Vectors Gold Miners ETF (GDX). Agnico Eagle Mines and AngloGold Ashanti form 9.8% of GDX’s holdings.
Precious metals–backed ETFs are large holders of physical bullion. So it’s important to track their buying and selling behavior. In the next part of this series, we’ll discuss precious metals ETFs and their holdings.
Continue to Next Part Browse this series on Market Realist:
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Royal Gold Inc.
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PRODUCTEUR |
CODE : RGLD |
ISIN : US7802871084 |
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ProfilIndicateurs de MarchéVALEUR : Projets & res.Communiqués de PresseRapport annuelRISQUE : Profile actifsContactez la cie |
Royal Gold est une société basée aux Etats-Unis D'Amerique. Royal Gold est productrice d'or, d'argent, de cuivre, de plomb et de zinc en USA, au Burkina Faso, au Canada, au Chili, au Mexique, au Nicaragua, en Argentine, en Bolivie et en Guinee, en développement de projets d'argent, de cuivre, d'or, de plomb et de zinc au Burkina Faso, au Canada, au Chili et en Australie, et détient divers projets d'exploration au Canada, en Argentine, en Bulgarie et en Finlande. Ses principaux projets en production sont BALD MOUNTAIN en USA, LIMON, LEEVILLE MINING COMPLEX et GOLDSTRIKE OPEN PIT au Nicaragua, DON MARIO (CERRO PELADO) et ROBINSON (NEVADA) en Bolivie, EL CHANATE, PEÑASQUITO, WHARF, MARIGOLD, DOLORES MINE, MULATOS MINE -ESTRELLA et GOLDSTRIKE UNDERGROUND au Mexique, SIGUIRI en Guinee, TAPARKO au Burkina Faso, MARTHA MINE en Argentine, ANDACOLLO HYPOGENE, TOQUI et ANDACOLLO au Chili et WILLIAMS, TWIN CREEKS, PIPELINE MINING COMPLEX et TROY au Canada, ses principaux projets en développement sont GOLD HILL et PASCUA LAMA au Chili, HOLT MINE & MILL et PINE COVE (MINGS BIGHT) au Canada, BALCOOMA en Australie et BOUROUM au Burkina Faso et ses principaux projets en exploration sont CANADIAN MALARTIC (QUEBEC), GOLDSTRIPE WILLA, MANHATTAN (WHITE CAPS) et CAMP BIRD MINE au Canada. Royal Gold est cotée au Canada, aux Etats-Unis D'Amerique et en Allemagne. Sa capitalisation boursière aujourd'hui est 8,0 milliards US$ (7,0 milliards €). La valeur de son action a atteint son plus bas niveau récent le 28 février 1992 à 0,03 US$, et son plus haut niveau récent le 28 mars 2024 à 121,81 US$. Royal Gold possède 65 455 293 actions en circulation. |