U.S. GOLD EXPORTS TO HONG KONG & CHINA : Doubled In October

U.S. gold exports to Hong Kong and China jumped significantly in October.  Not only were U.S. gold exports strong in October, they were the second highest for the year.  Shipments of gold out of the U.S. spiked in January, declined in February and March and remained subdued during the summer months.

However, U.S. gold exports Jumped 70% In September, at 50.1 metric tons (mt), with the majority going to Switzerland (15.3 mt) and the United Kingdom (13 mt).  If we look at the chart from the article linked above, U.S. gold exports to Hong Kong (8.5 mt) and China (3.3 mt) placed in the third and fourth position respectively:

Total U.S. Gold Exports Sept 2014

Then in October, something interesting took place.  According to recently released USGS Gold Mineral Industry Survey, the U.S. exported 51 mt of gold in October with a large increase going to Hong Kong, China and India.

Total U.S. Gold Exports OCT 2014

As we can see from the chart above, U.S. gold exports to Switzerland gained a little in October, reaching 17.6 mt compared to 15.3 mt in September…. but the big increase came from Hong Kong (12.9 mt), China (7.4 mt) and India (6.1 mt).  In addition, U.S. gold exports to the United Kingdom fell considerably from 13 mt in September to only 2 mt in October.

Now, if we look at U.S. gold exports over the past six months, we can see a striking change in October.  From May to September, gold exports to Hong Kong, China and India were a quarter of total exports.  However, these three countries accounted for 26.4 mt or 52% of all the U.S. gold exported in October, compared to 23% in September.

Total U.S. Gold Exports 2014 MAY - OCT.NEW2

Furthermore, the 7.4 mt of U.S. gold exported directly to China was the highest monthly total I have ever seen going back several years.  This increase of U.S. gold demand from Hong Kong, China and India was probably due to the big drop in the price of gold at the end of October when it fell from $1,250 on the 22nd of the month to a low of $1,160 on Halloween, the 31st.

It will be interesting to see how much gold was exported from the U.S. in November as the price of gold fell even further to a low of $1,130.

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4 Comments on "U.S. GOLD EXPORTS TO HONG KONG & CHINA : Doubled In October"

  1. We all know now, that any and all gold going to Switzerland gets re-cast into kilo bars and hits the fast lane to China. The fact that the Swiss just did what they did w/the euro peg, tells a tale of very limited gold left to ship east.

  2. Hi Steve,

    So where is all this US gold coming from? Out of the ground or out of vaults?

    • Brian,

      The U.S. produced 17 mt in October and imported 25 mt, for a total of 42. Then we have recycled scrap at about 5-8 mt, which puts us right close to that figure. However, that means the U.S. doesn’t consume any gold. So yes, this was probably a deficit month.

      steve

      • According to Eric Sprott, and considering the sources of information he can access compared to the average person, the U.S. is exporting significantly more gold than they have mined for years. In a very recent interview he said:

        “I wrote an article in 2012 asking, ‘Do the Western central banks have any gold left?’ The reason I asked that question is because I could see all of this demand and I kept wondering: How long can these guys keep this up with their supplies of gold dwindling?

        Then in 2013 they drained 850 tonnes of gold out of the various gold trusts and ETFs. With a 4,000 ton a year market, this was a significant increase in supply. Perhaps that took care of the shortfall in 2013 but in 2014 they hemorrhaged even more gold out of Western central bank vaults.

        Well, here we are in 2015 and we are hearing more and more about gold repatriations. So when does the day of reckoning come? When that day comes it will mark the breakdown of this latest scheme, just like the collapse of the London Gold Pool in the 1960s. I don’t think they will wait until the last bar of gold is gone from Western vaults, so the collapse of this latest suppression scheme could happen any day.

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