GoldMinerPulse: Shanghai Gold Exchange Physical Gold Delivery (Settlement)

Shanghai Gold Exchange Au(T+D) Weekly Delivery and Daily Settlement Volume Trends

Seabridge Gold    

Shanghai Gold Exchange (SGE)

For daily settlement updates, click here.

Gold Delivery From SGE Vaults

The gold deliveries from SGE vaults are shown on a year to date for 2014 versus 2015. In 2015, the Chinese New Year came 2 weeks later than 2014 which accounts for some of the February variance.

Shanghai Gold Exchange: Gold Bullion Delivered From Vaults (Updated on Fridays)
2014 2015 % Chg
2 January 2014 to Tonnes Gold Delivered from Vault 5 January 2015 to Tonnes Gold Delivered from Vault
18 April 2014 635.38 17 April 2015 731.44 15.1%
11 April 2014 606.36 10 April 2015 681.48 12.4%
4 April 2014 584.96 3 April 2015 646.95 10.6%
28 March 2014 559.14 27 March 2015 606.95 8.6%
21 March 2014 523.33 20 March 2015 561.23 7.2%
14 March 2014 487.78 13 March 2015 507.76 4.1%
7 March 2014 453.89 6 March 2015 456.31 0.5%
28 February 2014 417.67 27 February 2015 411.78 -1.4%
21 February 2014 368.63 20 February 2015 373.87 1.4%
14 February 2014 319.90 13 February 2015 373.87 18.3%
7 February 2014 255.89 6 February 2015 314.75 23.0%
31 January 2014 215.90 30 January 2015 255.42 18.3%
24 January 2014 215.90 23 January 2015 201.75 -6.6%
17 January 2014 158.94 16 January 2015 131.13 -17.5%
10 January 2014 99.14 9 January 2015 61.13 -38.3%

An example of the Chinese language report showing delivery volume from vault is presented below. The image below was taken from p. 7 of the 14 June 2013 report (available 21 June 2013) which can be found in the SGE Site in the weekly quote update section (direct link is not available).

Physical Delivery From Vault 14 June 2013

Charts prepared using the weekly gold deliveries from SGE vaults and other related information are available here. An excellent blog on Shanghai Gold Exchange physical delivery is also available here.

Data on daily delivery from vault is not available in any SGE report -- the quantitly labeled as delivery volume on the SGE English language pages should be understood as "settlement volume" and is definitely NOT delivery volume from vault.

I received the following explanation on the daily Au(T+D) delivery, which I track in the next section below, from a contact at the SGE:

Simply speaking, Au(T+D) is a product with margin and position concept, i.e. you get a long position after buying and get a short positon after selling. Delivery happens everyday between long and short positions. So delivery volume is the volume delivered from some short positions to some long positions. It's nothing relevant to the volume leaving the vault which is not an available data. Think about futures, delivery occurs from short positions to long positions, kind of similar concept for your understanding.

My SGE contact would not, however, comment on the approximately 20 days of 0 Au(T+D) delivery volume during April and May of this year.

Sorry as an exchange, we can not make comments on trading pattern. You have to analysis by yourself based on public info.

The SGE has a flexible range of good delivery bars, which I believe is consistent with an exchange that is commonly used for physical delivery to consumers (source: CHINA NATIONAL GOLD GROUP CORPORATION): Shanghai Gold Exchange Good Delivery


Weekly Physical Delivery Verus Daily Settlement Volume

SGE Weekly Gold Delivery From Vault versus Daily Settlement Volume
(totals tonnes for year or yeat to date)
  2013 2014 2015                
Physical Gold Delivery From Vault 2,186 2,102 731
Au(T+D) + 0.1*mAu(T+D) Settlement Volume 2,422 2,802 1,408

An ad hoc inspection the historic periods of negative GOFO rates suggests that when rates are negative, daily settlement volumes drop off and settlment volumes pickup after rates return to their normal positive values -- major periods of past negative GOFO rates were:

The weekly physical gold deliveries, which I believe are always made from physical inventory, do not appear correlated with GOFO rates.

I strongly expect that as of mid April 2015, gold GOFO rates are solidly negative. TIA to anyone who can send me the current GOFO quotes.


Daily Au(T+D) and mAu(T+D) Settlement Reports

The following chart shows Au(T+D) plus the 0.1 * mAu(T+D) daily settlement volumes on a monthly basis, including current month to date.