via Lawrie On Gold - Shanghai Gold Withdrawals

I would maintain that unless ETFs are being drained of their physical gold through redemptions, then spectacular delivery numbers like this would not occur. Annual mine supply is said to be 2500 tonnes per year.

Physical redemptions and sales into markets are contributing to gold price declines on any given week, where you have 50 tonnes sold on a given day.

On Monday, the inclusion of the Yuan into SDRs is set to occur, though the Yuan in international trade is said to be equivalent to the $CAD. Of greater importance would be the de-peg of the Yuan from the $US.

I believe that a long-only strategy in physical gold ETFs that allow redemptions will prove incorrect, that the gold will be sold directly into the markets, leaving investors with no way of re-supplying their physical requirement.

In effect, you would need to invest in mining, the yielding asset in the gold space. At least in mining gold is swapped immediately for cash, then the cash is distributed to shareholders. (theoretically) This is a point you would not have been able to make a year ago.

http://lawrieongold.com/2015/11/27/chinese-sge-gold-withdrawals-keep-surging-latest-week-54-tonnes/

via Kitco - Gold Correcting Into Backwardation

A discussion over at Kitco regarding gold futures and comparing with Eurodollar futures. There is a significant spread between US Treasuries prices and gold bullion priced in $US Dollars.

http://www.kitco.com/news/video/show/Kitco-News/1118/2015-11-26/Gold-Backwardation-Showing-Signs-of-a-Bottom-Potential-For-Fed-Misfire---ETF-Securities

-F6