Shanghai Gold Exchange Delivers More Gold in Two Weeks than Comex Delivers in a Year

[Smaulgld]

The Shanghai Gold Exchange delivered 45.480 tons of gold during the week ended May 15, 2015.

The weekly average deliveries on the Shanghai Gold Exchange since the start of 2013 is approximately 44 tons.
Total gold withdrawals on the Shanghai Gold Exchange year to date are about 905 tons.

https://smaulgld.com/shanghai-gold-e...d-may-15-2015/

[Zippyjuan]

Really? Actual volume comparisons in tonnes (metric tons)- SGE being Shanghai Gold Exchange (that is the shortest black lines in the chart):

https://www.bullionstar.com/blogs/ko...-nearly-2100t/



I believe that decimal place in the COMEX figure in your chart should actually be a comma. That would come out to about 1600 tonnes a week for 2014 which is in the range of what this chart shows.

[TheCount]

The idea that someone would report deliveries down to thousandths of a ton doesn't pass the common sense test. More likely, the data used is from a country where periods are used as thousands separators.

[Smaulgld]

The comex volume is in paper futures contracts not in gold delivered
Most gold contracts comex never result in physical delivery of metal
Comex is not a place where people go to buy and sell gold, it is predominately a place to hedge positions and to speculate.

[Smaulgld]

Really? Actual volume comparisons in tonnes (metric tons)- SGE being Shanghai Gold Exchange (that is the shortest black lines in the chart):

https://www.bullionstar.com/blogs/ko...-nearly-2100t/



I believe that decimal place in the COMEX figure in your chart should actually be a comma. That would come out to about 1600 tonnes a week for 2014 which is in the range of what this chart shows.

Comex gold deliveries in 2014 were 2.7 million ounces or 168,750 pounds or 84.375 tons. Comex is a paper futures market not a physical market.

[Smaulgld]

Only 1.5% -3% of comex contracts ever reach the delivery stage. The point of the chart is to show that the Shanghai gold exchange is a physical market with massive amounts of gold delivered vs the comex which has little in the way of deliveries
http://www.acting-man.com/?p=25191

[Dr.3D]

I'm pretty sure, Comex would default on delivery if all those holding the contracts decided to take delivery.

[Zippyjuan]

The comex volume is in paper futures contracts not in gold delivered
Most gold contracts comex never result in physical delivery of metal
Comex is not a place where people go to buy and sell gold, it is predominately a place to hedge positions and to speculate.

True for Shanghai as well. https://www.bullionstar.com/blogs/ko...ange-part-one/ They are also a futures market. If a contract changes names, it is considered "gold delivered".

When you become a customer of the Exchange you will receive a trading code that is connected to your identity (or company) until infinity, no matter if you switch broker twice a week this code will stick with you until death does you part (article 17). Subsequently, you will be attributed two accounts:

– The first is your Bullion Account; each customer’s physical deliveries, load-in and load-out amounts shall be recorded in its Bullion Account. Note, physical deliveries are not withdrawals from the vaults. As we can read from Article 85 of the Spot Trading Rules of the Shanghai Gold Exchange:

Article 85

The term “Physical Delivery” refers to the act of transferring the ownership of the precious metals traded by the Exchange for the performance of the terms of a trade.

In physical delivery the Exchange transfers precious metals from one Bullion Account to another.

[Smaulgld]

True for Shanghai as well. https://www.bullionstar.com/blogs/ko...ange-part-one/ They are also a futures market. If a contract changes names, it is considered "gold delivered".

Nope physical gold is WITHDRAWN from the SGE in far greater amounts than COMEX.

[Smaulgld]

I'm pretty sure, Comex would default on delivery if all those holding the contracts decided to take delivery.

True but it hasn't happened and wont happen because the biggest traders are the bullion banks themselves and they have no interest in taking delivery.
People trade futures on comex for hedging/speculation reasons, not to acquire metal. The Comex default scenario has been touted incessantly by the gold/silver sellers AND subscription sellers -its fiction, just like the JP Morgan is acquiring 350 million silver eagles and is cornering the silver market story- it gets gold bugs excited but it's nothing more than speculation.

[Smaulgld]

True for Shanghai as well. https://www.bullionstar.com/blogs/ko...ange-part-one/ They are also a futures market. If a contract changes names, it is considered "gold delivered".

[Smaulgld]

There is some confusion as to what is counted as "delivered" and "withdrawn" on the shanghai gold exchange but it is clearly a market where traders acquire physical metal in far greater amounts than on COMEX

[Smaulgld]

There is some confusion as to what is counted as "delivered" and "withdrawn" on the shanghai gold exchange but it is clearly a market where traders acquire physical metal in far greater amounts than on COMEX

SGE is more like the LBMA which is a market where traders go to acquire physical metal. Comex is 98% futures contracts with no delivery component

[Zippyjuan]

How much gold is in the Shanghai Exchange vaults to be physically delivered (removed from the vaults)? I have had troubles trying to find out.

The rules posted in the captures above show that physically taking gold out of the vaults is discouraged. If you want to add gold to the physical vault (say to re-deposit gold you bought from them or gold you want to place on the physical market through them), it must be completely re-melted and re-assayed which would be costly. That is why most is traded on paper- not physical movements of metals- changing names on the title of the gold contract.