Gold Demand: Rising in China, but by How Much?

Shanghai stock exchange

Chinese gold demand is up 4.5% so far this year over last year, according to figures from the Shanghai Gold Exchange (SGE). The full year figure is on track for 2,050 tonnes by the end of the year. That’s below the record 2015 year of 2,596 tonnes, but still well above last year’s 1,970 tonnes. But how much can we trust these figures?  

As we’ve reported before, China has a long history of not releasing complete or always-reliable economic numbers, a trend that continues to this day. Your Gold Enthusiast believes the SGE figures show at least the general trend, but probably aren’t as spot-on accurate as an accountant would like.  

Today’s featured article discusses both of these observations. It also provides insight into the monthly movements of gold in the SGE. It’s always nice to peek behind the wall and see what’s going on back there.

Hurricane Irma Related: Will Hurricane Irma Affect the Gold Market? 

About the author

Mike Hammer

Mike Hammer has had a wide-ranging career, with trading and investing as a continuing theme. Mike graduated from UC Berkeley with a business degree, then worked with Macy's in their operations arm. He left Macy's and spent a summer trading his own account, which taught him a lot about trading in general and markets in particular. Trading through the Black Monday and the Crash of 1987 showed him how most people are unprepared for upheavals in their trading. He then joined Waddell & Reed as a financial advisor, helping regular people understand their finances and meet their life goals.

Then came the usual story - Mike met and married the lady of his dreams. They moved to upstate New York, where Mike worked first for a small manufacturing consulting company, then Cornell University. While loving the work and the higher-education atmosphere, Mike missed the world of finance. Eventually, he signed up for stock trading coaching with the Adam Mesh Trading Group, to learn from people who understood modern markets. Within a year, Adam asked Mike to become a stock trading coach.

Since then, Mike has trained over 200 individuals, spoke at several national conventions, and is a frequent contributor to conference calls across the Adam Mesh community. Mike writes The Gold Enthusiast daily newsletter, runs the Golden Hammer trading service, and participates in the Mesh Private Portfolio. He also keeps a position in international education which keep him in touch with "the student mindset". Mike closely follows the gold, energy, and financial sectors. His motto is "Plan your trade, then trade your plan!"

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