144 Tons of Gold Withdrawn from the Shanghai Gold Exchange in August
Through August, over 1,200 tons of gold have been withdrawn from the Shanghai Gold Exchange. Twelve hundred tons of gold is roughly the equivalent of the amount of gold held by the central banks of the Netherlands and India.
The Shanghai Gold Exchange has drawn attention from gold observers for its increasing gold withdrawals the past few years, which have rivalled annual global gold mining production.
China Aims For Greater Transparency in Gold Reporting
In July 2015, the People’s Bank of China (PBOC) released their first update to gold reserves in six years. The PBOC reported that they had added 604 tons of gold to their 1,054 tons held in reserve, bringing their total to 1,658 tons. In September 2016, the PBOC reported 1,834 tons of gold reserves, having added another approximately 175 tons of gold to its reserves from July 2015 to August 2016. China’s gold holdings place it squarely among the top gold holding nations behind only France (2,435.50 tons), Italy (2,451.80 tons), Germany (3,381 tons) and the United States (8,133.50 tons).
With soaring gold imports, a robust physical gold exchange and the world’s largest gold mining production of about 460 tons a year, China is expected to take a greater role in helping to set the gold price in coming years.
About the Shanghai Gold Exchange
The Shanghai Gold Exchange was established on October 30, 2002, by the People’s Bank of China and organizes the trading of gold, silver, platinum and other precious metals.
This article by BGASC is not, and should not be regarded as, investment advice or as a recommendation regarding any particular course of action.