Gold Silver Worlds: We wrote recently in World Gold Council Reports Significant Error In China’s Gold Holdings that the official gold demand figures out of China are significantly incorrect.
Official gold demand figures are mostly provided by the World Gold Council and Thompson-Reuters GFMS. However, when comparing those figures with gold export statistics by Hong Kong, Turkey, the Shanghai Exchange, etc, it appears there are significant differences.
Alasdair Macleod went deeper in the matter and published an interesting calculation. He wrote:
Recently Eric Sprott wrote an open letter to the World Gold Council laying out that the Chinese gold import statistics show higher figures than the ones from the World Gold Council itself.
It seems that Sprott and the WGC are trying to do two different things. Sprott is interested in how much gold is actually taken into a country net of exports, irrespective of its use category, taking the view that there can be no more accurate estimate of overall gold demand, irrespective of how it is used. The WGC is trying to identify how much gold is used for specific purposes, which given the opaqueness of the market means they will never track all of it down. Crudely put it is top-down versus bottom-up.
To see how different the results can be let’s look at the solid figures for China and Hong Kong for the first nine months of 2013 which are set out in the table below, before comparing the result with that of the WGC.
All these are published figures which we can assume to be accurate. Mainland China does not release import/export statistics for gold but we know what has been physically delivered through the Shanghai Gold Exchange, the monopoly physical market, and we know what Hong Kong imports exports and re-exports.(...)Click here to continue reading the original ETFDailyNews.com article: Gold Demand Figures Out Of China Are Significantly IncorrectYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here