by Jeff Nielson, Bullion Bulls Canada:
Koos Jansen just put out a new article on a new “statement of intentions” of the SGE (i.e. Shanghai Gold Exchange). While Mr. Jansen focused on the SGE’s intent to forge closer (commercial) ties to India’s huge gold market; I was most interested in a couple of the numbers released by the SGE:
In recent years, we have witnessed the trend of “oriental gold” playing an increasingly important role in the global market attributable to the rapid development of the China’s gold market: in 2013 alone, the gold produced and imported by China exceeded 50 percent of the world’s gold production and 60 percent of the world’s gold consumption, respectively. As the world’s biggest gold producer, consumer, and importer, China is gradually integrating itself into the global gold market.
There are several points of interest in just that one line. We start with the absolute numbers: one nation is (by itself) producing/importing roughly half the world’s gold, and consuming 60% of annual supply. Admittedly China has a huge population, but even so it only represents about 17% of the global population. So we see China is a disproportionally large player in this market by a factor of roughly three.
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