Shanghai Gold Exchange contract volume surges on price slump


From Bloomberg News
Friday, December 20, 2013

Gold volumes for the benchmark cash contract on the Shanghai Gold Exchange, China's biggest spot bullion market, climbed to a 10-week high as a price slump spurred buying.

The volume for bullion of 99.99 percent purity climbed to 19,775 kilograms yesterday, the biggest since Oct. 8, from 13,673 kilograms the previous day, according to exchange data compiled by Bloomberg. That compared with a record 43,272 kilograms reached on April 22. Prices fell today for a third day, losing as much as 2.1 percent to 235.85 yuan a gram ($1,208 an ounce), the lowest since February 2010.

The surge underscores robust demand in the nation set to overtake India as the largest user. When gold entered a bear market in April, demand for jewelry and bars surged in Asia, even as other investors cut holdings in exchange-traded products at a record pace. Bullion in London rebounded after yesterday tumbling below $1,200 an ounce for the first time since June on Federal Reserve's plans to start trimming stimulus.

... Dispatch continues below ...


You Don't Have to Wait for Your Monetary Metal:
All Pro Gold Has Product for Immediate Delivery

Many investors lately report having to wait weeks and even months for delivery of their precious metal orders. All Pro Gold works with the largest wholesalers that have inventory "live" -- ready to go. All Pro Gold can ship these "live" gold and silver products as soon as payment funds clear.

All Pro Gold can provide immediate delivery of 100-ounce Johnson Matthey silver bars, bags of 90 percent junk silver coins, and 1-ounce silver Austrian Philharmonics.

All Pro Gold can deliver silver Canadian maple leafs with a two-day delay and 1-ounce U.S. silver eagles with a 15-day delay.

Traditional 1-ounce gold bullion coins and mint-state generic gold double eagles are also available for immediate delivery.

All Pro Gold has competitive pricing, and its proprietors, longtime GATA supporters Fred Goldstein and Tim Murphy, are glad to answer any questions or concerns of buyers about the acquisition of precious metals and numismatic coins.

Learn more at or email or telephone All Pro Gold toll-free at 1-855-377-4653.

"Quite a number of investors in China have been waiting in the wings for a bargain-hunting opportunity," said Liu Xu, senior analyst at Capital Futures Co. in Beijing. "Volumes also jumped as some investors, who had bought before the Fed meeting betting on an inutile gesture from the Fed, had to close out their positions now."

Chinese demand for the precious metal may reach 1,000 metric tons this year, the World Gold Council estimates. China's shipments from Hong Kong unexpectedly rose to the second-highest on record in October, with the amount in the first 10 months more than doubling to 955.9 tons.

"Price-sensitive buyers came in heavily last time gold fell to $1,200," James Steel, an analyst at HSBC Securities (USA) Inc., wrote in a note yesterday. "A repeat could stem declines."

The precious metal for immediate delivery in London rose 0.7 percent to $1,196.45 an ounce by 12:52 p.m. Singapore time. The price is down 29 percent this year, heading for the first annual drop since 2000 as the global economy improved. Assets in bullion-backed ETPs fell 32 percent in 2013 after gaining every year since the first product started in 2003.

* * *

Join GATA here:

Vancouver Resource Investment Conference
Vancouver Convention Centre West
Sunday-Monday, January 19-20, 2014
Vancouver, British Columbia, Canada

Mines and Money Hong Kong
Hong Kong Convention and Exhibition Centre
Monday-Friday, March 24-28, 2014
Hong Kong Special Administrative Region, China

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

Or by purchasing a colorful GATA T-shirt:

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

Help keep GATA going

GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:

To contribute to GATA, please visit: