Gold Stock Fortunes Update - China Driving Gold Demand Growth

Thanks to a subscriber for forwarding a Reuters article which quotes the World Gold Council’s report that Chinese ETF inflows this month have exceeded those for the first quarter.

29.1 metric tons in the first 11 days for the month much be a record for demand.

It also highlights an important fact.

29.1 metric tons is 935,586 troy ounces.

Between the beginning of April and today, Bloomberg’s Total Known ETF Holdings of Gold rose 1,163,248 troy ounces.

The name of the Index is misleading. It does not include Chinese ETFs.

In fact it only seems to count the holdings of US, Canadian and European funds. It doesn’t include Sprott’s Physical gold funds either, because they are not technically ETFs.

In future we can only rely on this index as an indicator of developed market demand.

Meanwhile, China just provided an additional allocation to its commercial banks to boost their import quotas.