by Koos Jansen, In Gold We Trust:
From April 14 to 18, week 16, 29 metric tonnes of gold were withdrawn from the vaults of the Shanghai Gold Exchange. In week 15 it was 21 tonnes, so demand, which equals SGE withdrawals, is slightly picking up. Although it’s nowhere near the figures we saw in the beginning of this year, when there were four weeks when SGE withdrawals transcended global mining production. Lets’ put some weekly numbers in perspective.
2197 tonnes were withdrawn in total in 2013, which was an average of 42.25 tonnes (2197/52) per week. The year to date weekly average is 39.68 tonnes, heading for 2036 tonnes in total in 2014 – though I think it’s impossible to make a fair estimate for this year’s total. The price of gold could be heading lower sparking another buying spree as happened in April 2013, or the price could go higher, possibly slowing down global gold distribution and SGE withdrawals.
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