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Thread: Shanghai Gold Exchange Delivers More Gold in 2 Weeks Than Germany has Repatriated in Two Years

  1. #1

    Shanghai Gold Exchange Delivers More Gold in 2 Weeks Than Germany has Repatriated in Two Years

    The Shanghai Gold Exchange delivered more than 100 tons of gold during the past two recently reported weeks. Germany has managed to repatriate just 90 tons of gold from the New York Federal Reserve in two years.

    https://smaulgld.com/shanghai-gold-e...-june-19-2015/
    Attached Thumbnails Attached Thumbnails SGE june 19 commentary.PNG  
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  3. #2
    Curious-what is the significance of the volume of gold traded in the Shanghai Gold Futures Exchange? Comex handles far more volume. Why not post their withdrawls?

    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    I am Zippy and I approve of this post. But you don't have to.

  4. #3
    The Shanghai Gold Exchange delivers far more physical metal than Comex. Comex trades futures contracts far in excess of what is available for delivery
    Attached Thumbnails Attached Thumbnails comex vs shanghai gold exchange may 2015.PNG  
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  5. #4
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    Quote Originally Posted by Zippyjuan View Post
    Curious-what is the significance of the volume of gold traded in the Shanghai Gold Futures Exchange? Comex handles far more volume. Why not post their withdrawls?
    Do you not know the difference between gold and contracts or are you being purposefully deceitful?
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    I am a libertarian. I am advocating everyone enjoy maximum freedom on both personal and economic issues as long as they do not bring violence unto others.

  6. #5
    Quote Originally Posted by Cleaner44 View Post
    Do you not know the difference between gold and contracts or are you being purposefully deceitful?
    LOL I just posted the comex withdrawls compared to the Shanghai withdrawals. That won't satisfy my most persistent follower!
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  7. #6
    Quote Originally Posted by Cleaner44 View Post
    Do you not know the difference between gold and contracts or are you being purposefully deceitful?
    On the Shanghai Gold Exchange they are the same thing. It is not that many ounces being physically delivered to customers but the name on a contract (title to the gold) which changes.

    "physical delivery" means changing the name of who owns the gold- not gold physically removed from their vaults. There may be some confusion on this point. If I bought 100 ounces on the exchange and sold it to Steve and he in turn sold it to Bob, no gold left their vaults but it would show up as 200 ounces delivered. They are not physically handling all the gold produced in the world. "Exchange volume" is how many transactions occurred. The same gold shares can be sold over and over which increases the "physical delivery" numbers without necessarily meaning the exchange brought in and shipped out that much actual gold.

    https://www.bullionstar.com/blogs/ko...ange-part-one/

    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.
    Given their rules on taking physical delivery, most trades are probably not taking actual metal from their vaults.

    The most basic way of trading bullion on the Exchange is through physical products (which do not enjoy leverage or fractional backing): After submitting a buying order of the respective product you wish to purchase on the Exchange, your order has to be matched with a seller’s order before a deal can be closed. When a deal is closed physical products are settled the same day. The amount of RMB in full is transferred from your Margin Account to the seller’s Margin Account and the corresponding amount of bullion is transferred from the seller’s Bullion Account to your Bullion Account. You would now be the owner of physical gold (located in an SGE(I) Certified Vault) and are free to process your bullion to your discretion. From the Spot Trading Rules of the Shanghai Gold Exchange:

    Article 46

    To trade in a physical product, a buyer must possess funds of an amount equaling the total transaction value of the product when placing the order; and a seller must have the corresponding full amount of physical bullions in its trading account when placing an order. After an order is placed, the funds or physical bullions covered by the order will be frozen immediately.
    After an order on physical gold product is filled, the buyer may re-sell the purchased gold on or after the current trading day, or may request to withdraw the gold.

    From the Detailed Rules for Physical Delivery of the Shanghai Gold Exchange:

    Article 18

    A member or customer trading in a physical gold or platinum product may request to withdraw the gold or platinum bullions as soon as the trade is executed.
    Settlement on the same day a deal is closed is referred to as (T+0) settlement.

    Be aware of the fact that when bullion is withdrawn from a MB or IB Certified Vaults it’s not allowed to re-enter these vaults before it is melted and re-assayed again. From the Detailed Rules for Physical Delivery of the Shanghai Gold Exchange:

    Article 23

    Any gold bullion withdrawn by a member or customer shall not be loaded into any Certified Vault in the future.
    http://www.ronpaulforums.com/showthr...nghai+exchange
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    I am Zippy and I approve of this post. But you don't have to.

  8. #7
    Correct as you point out 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:

    I am reporting on WITHDRAWALS not physical deliveries.
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  9. #8
    Is that why your headline and post says "delivered"?

    I asked before but was unable to get an answer. How much gold does the Shanghai Gold Exchange have in their vaults available for delivery or withdrawl?

    (your second chart in Post #3 is missing a decimal point in the Comex chart- that should be a coma instead- see the chart I posted).
    Quote Originally Posted by Swordsmyth View Post
    The quality seems to have dropped significantly since I came here, I guess you get what you pay for.
    I am Zippy and I approve of this post. But you don't have to.



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