Shanghai Gold Exchange (SGE and SFE) gold and silver

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Whether or not it is a real disaster or not to the gold community, I do not know. However I find it intriguing that each time some aspect of the world financial community starts to unravel, TPTB either discontinue information, change the rules, or cook up new definitions.

The fact that the Shanghai gold withdrawal data is being discontinued is enough evidence for me that something else is coming unraveled that they do not want seen.
 
Disaster? No.

Negative? I think so. Information/transparency informs good decision making. Things just got a bit more opaque.

Of course, for the committed stackers who just continue with a steady accumulation strategy, it doesn't matter at all.
 

http://www.tfmetalsreport.com/blog/7572/yuan-denominated-gold-fix-begins-tomorrow

So, it went live last night.
 
And what a good day it was for all the metals.

How much did this new exchange effect todays price movements ?

There are 'grey swans' in many directions and the manipulation and cover ups are becoming so regular that Judges can say professional investors shoulda known better .....
and the media is legally allowed to lie cos its 'freedom of speech' .....

The pace of the collapse quickens (-:
 
rblong2us said:
And what a good day it was for all the metals.

How much did this new exchange effect todays price movements ?
...
Click to expand...

Hard to tell. Between central bank signalling and what's happening with the oil market, there are a lot of moving parts to keep track of. Looks like both metals are pushing their upper resistance though.
 

More( incl. charts): https://srsroccoreport.com/stand-aside-jp-morgan-a-new-player-in-the-silver-market-has-arrived/

Note that this is the Shanghai Futures Exchange and not the SGE, but still related to China.
 

More:

Chinese Gold Panda Coins Now Trading On Shanghai's SGE

The Shanghai Gold Exchange has launched a Gold Panda coin contract for both individual and institutional investors.
www.bullionstar.com
 
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This post may contain affiliate links for which PM Bug gold and silver discussion forum may be compensated.
rblong2us said:
"SGE Trading to facilitate Price Discovery"

no timescale though .............
Click to expand...

* necro bump *


More:

Premium on China's Shanghai Gold Exchange hits record highs as supply constraints and demand converge

Kitco News' general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices
www.kitco.com

 
Snap!


China lifts temporary curbs on gold imports as renminbi recovers | Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market

gata.org
 
Back in the day people did not really use much physical gold for regular purchases. They would carry some gold coins and convert them into silver at the bank. If they were buying bigger ticket items, then they used gold coins or certificates.
 
nickndfl said:
Back in the day people did not really use much physical gold for regular purchases. They would carry some gold coins and convert them into silver at the bank. If they were buying bigger ticket items, then they used gold coins or certificates.
Click to expand...

You know, I could actually see these roles reversing in the future.... Gold is potentially going to be more common and makes for great money because of its stability. I'm thinking about things like Goldbacks now with some new technology that makes small amounts also very feasible. Silver is a bit more reactive and I think may become too rare to be the everyday coin. It will be used up by industry and as a store of value.
 
Has China limited gold imports again?


Chinese pay premium prices for gold as economic outlook dims | Gold Anti-Trust Action Committee | Exposing the long-term manipulation of the gold market

gata.org
 

I don't watch or analyze these numbers, so I don't know if this is truly significant or just normal ebb and flow
 
Bai reports silver dropped to 935K kg in the latest SFE report.
 
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This post may contain affiliate links for which PM Bug gold and silver discussion forum may be compensated.
That graph was from December 1st and the last data point showed ... <puts on reading glasses... grabs mouse to enhance.. enhance...>... slightly over 1400 tonnes of silver. In the last month and half, it's fallen to ~935 tonnes. That's slightly over 1/3 of their inventory gone since the graph was published. If that rate of decline holds true, they will run out of inventory in about 3 months.
 

PMB... don't get mad... the 930t figure refers to SFE... while the graph above... to SGE!


This is the SFE




Since December 15, down from 1000t to 930t
1 month, -70t
-80% annualized
still not bad!

We just need a bigger bag of popcorn
 
Thanks! I missed that (obviously!).
 
Bai reports 923.7 for Jan 24. Silver inventory still shrinking.
 
Shanghai


Y 5943/kg
1Y = $0,14
$769/kg

769:1000 = x:31,1
x=23,91

Price oz silver in $
$22,69 NY
$23,91 Shanghai

1,22 premium
22,69:100=1,22:x

5,4% Shanghai's premium vs. NY

E&OE
 
"Silver investors often wonder why the miners sell their silver to the COMEX rather than going straight to the end user.
There's a lot of confusion on how the process actually works. But fortunately Vince Lanci checks in today and explains what happens to the silver, and how all of the different counter-parties interact.
He talks about where the silver actually goes, and why the silver miners aren't selling their metal directly to Shanghai where premiums remain elevated."

30 min.

 
pmbug said:
Chengtong PM limited
Click to expand...

Many thanks PM!

Deep Sea Mosasaur in the Precious Metals Market​

"In short, the parent company of Chengtong Precious Metal Company is China Logistics Group, and China Logistics Group is a central enterprise directly under the State Council.

Chengtong PM cooperated with the People's Bank of China and other top-degree units, to design and establish Shanghai Gold Exchange, and to lead the historical reform of silver from the planned economic system to the market-oriented system, to organize the listing of silver products, and participate in the design of silver contracts in Shanghai Futures Exchange. It is the founder and pioneer of China's silver market, as well as the maker of gold and silver trading rules and industrial policies.

Chengtong PM is the largest importer and exporter of silver in China.

Chengtong PM also engages in investment and asset management, known as the second treasury after the People's Bank of China.

According to information disclosed on its official website, it currently stores 3000 tons of gold and over 10000 tons of silver on behalf of Chinese private customers! If adding the company's silver inventory on SGE and SFE's silver vaults has exceeded 13000 tons! The data disclosed here is the first time we have obtained data on private gold and silver reserves, and it is only a small part of China's huge private gold and silver reserves."
 


SFE silver vault, -3% in 1 single day

West silver, $23
China silver, $25

West gold $2020
China gold, $2070
 
Not surprising news given the SGE/COMEX environment:

Left unsaid in that report was how much gold exports to the COMEX/LBMA might have been reduced from normal flows to feed the surplus demand from China and India.
 


25,4 Shanghai
22,6 "official" price
$2,8 = 11% premium

Shanghai closes at 3pm local time
At 3pm Shanghai time the silver international price was $22,6
(I hope I'm not wrong)
 
Voodoo said:
A 10%+ difference seems like an Easy arbitrage opportunity. That would pay for the hassle and shipping costs to drain the COMEX of all their silver.
Click to expand...
Exactly. Either China has import quotas or foreign companies need a permission to send to China and sell in Shanghai.
But still I don't understand why the authorities prohibits it:
Shanghai silver buyers could get silver at lower prices!
They would facilitate the accumulation of silver inside the country.
They would increase Shanghai volume, thus increasing the importance of a Chinese exchange on the world market.
I don't understand
 


25.40 vs. 22.50
$3 premium
how high do premiums have to be in order for arbitrageurs to jump in
 
Peter89 said:
the premium!
Click to expand...
That could be indicative of other things like import restrictions, international transportation issues (costs, insurance, etc.), liquidity, etc.

...or... maybe difficulty in sourcing physical in the west to send east....
 
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