Premiums High In China and India – China Gold Deliveries Double
GoldCore
GoldSeek.com
Tuesday, 16 July 2013
The cost of borrowing gold remains near its highest level since January 2009, reflecting a lack of supply from bullion banks and resilient demand for physical gold products, especially in Asia.
Trading volumes for gold and silver on the Shanghai Futures Exchange (ShFE) rose to record volumes on Friday, with premiums in Asian gold products remaining at sharply higher levels than in North America and Europe.
Gold premiums in China remain high at nearly $30 per ounce (see table above) an indication of strong demand in the People’s Republic of China and premiums in India remain robust despite the recent fall in demand.
Chinese gold demand remains insatiable with record deliveries being seen on the Shanghai Gold Exchange (SGE). Physical gold delivered to buyers by China’s largest bullion bourse in the first half of this year almost matched the entire amount taken from its vaults in all of 2012, and was more than double the country’s annual production.
The Shanghai Gold Exchange supplied 1,098 metric tons in the six months through June, compared with 1,139 tons for the whole of last year, according to data from the bourse reported by Bloomberg.
The Rest…HERE
