Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Chinese Gold Demand Continues to Strengthen

  by    0   0

Gold demand in China was up in September, as the country approaches a peak gold-buying season.

Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.

China ranks as the world’s number one gold consumer.

According to the World Gold Council, withdrawals from the SGE rose to 191 tons in September. That represents a 27% month-on-month increase. G0ld withdrawals were 63% higher than in September 2019, before coronavirus battered the Chinese economy.

September is typically a strong month for wholesale gold demand in China as it leads up to an important holiday season. October is traditionally a big month for gold jewelry sales during the seven-day National Day Holiday in early in the month.

August gold imports into China came in at 76.9 tons. That was 10.3 tons higher than July and in line with August 2019.

Rising local premiums also signal growing demand for gold. The local gold price premium rose for the third straight month in September, averaging US$7.5/oz. That was $1.70 higher month-0n-month.

Investment demand for gold continues to increase in China as well. Chinese gold ETFs charted their fourth consecutive month of gold inflows amid weakened economic growth and a volatile stock market. Chinese ETFs now hold 72 tons of gold, the second-largest amount on record. Year-to-date, Chinese ETFs have added 11 tons of gold to their holdings.

Like the US, the Chinese economy is showing signs of stagflationary pressure. The World Gold Council says slowing economic growth might be supportive of gold investment demand in the coming months.

Overall gold demand was up 69.2%, coming in at just over 547 tons through the first 6 months of the year. China’s year-on-year gold consumption surged 93.9% in the first quarter alone.

According to the Global Times, the Chinese government implemented macroeconomic policies aimed at bolstering domestic gold consumption.

Last spring, China gave the green light for the import of 150 tons of gold. The report notes that China’s returning appetite for gold could potentially “support global prices.” Reuters called the size of the expected Chinese gold imports a “dramatic return to the global bullion market.”

In addition to importing tons of gold, China ranks as the world’s biggest gold producer. While gold demand rebounded in the first half of 2021, Chinese mine output did not. Gold production fell 10.2% to just 152.8 tons. According to the Global Times, work accidents disrupted gold mine output in gold-producing East China’s Shandong Province.

Download SchiffGold's Gold vs GLD EFT's Guide Today

Get Peter Schiff’s key gold headlines in your inbox every week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

Gold Hits New All-Time Record High

Gold hit a new all-time nominal high, surpassing the previous record set in December of the previous year. The precious metal’s price reached approximately $2,140, indicating a robust and continuing interest in gold as a safe-haven asset, despite a rather peculiar lack of fanfare from the media and retail investors. This latest peak in gold […]

READ MORE →

Is a Weak Yen Feeding the Global Gold Bull?

The gold price has been surging, with unprecedented central bank demand gobbling up supply. It has been a force to behold — especially as US monetary policy has been relatively tight since 2022, and 10-year Treasury yields have rocketed up, which generally puts firm downward pressure on gold against USD. 

READ MORE →

World Gold Council: “Blistering Central Bank Buying” Fuels Strong Gold Demand

Total gold demand hit an all-time high in 2023, according to a recent report released by the World Gold Council. Last week, the World Gold Council (WGC) released its Gold Demand Trends report, which tracks developments in the demand for and use of gold around the world. Excluding over-the-counter (OTC) trade, 2023 gold demand fell slightly from 2022 […]

READ MORE →

VIX – The Calm Before the Storm

The VIX, often referred to as ‘Wall Street’s fear gauge,‘ is currently portraying a sense of calm among investors, registering well below the 20 level. 

READ MORE →

Four States Consider Lifting Taxes on Precious Metals

Citizens of Georgia, Kentucky, Wisconsin, and Kansas may soon enjoy lower taxes on precious metals if recently introduced pro-metal bills are made law in 2024.

READ MORE →

Comments are closed.

Call Now