Alasdair Macleod provides very good explanation for the difference between Eric Sprott calculations and WGC estimates, which are dramatically underestimating the real demand for Gold from China this year.
Peter Schiff: On Taper, China's Bombshell Announcements For Treasuries, Dollar And Gold GLD, MUX, TNR.v, GDX
"Peter Schiff talks about the bombshell of the year - China has announced the Mother Of All Tapering - PBOC Says No Longer in China's Interest to Increase Reserves. China is ready to reduce its balance sheet and they do not have to sell any US Treasuries - during the operation Twist they have used the golden opportunity and rolled over the long term treasuries into the shorter maturities. China can just allow US to repay maturing US Treasuries. We do not think here that they will accept Bitcoin. They have made this announcement after the record buying of Gold and some people are estimating that official Gold reserves are much higher than officially recognised today."
China, India, Turkey and Thailand Buying Record Amount of Gold - What Do They Know The Others Don't? GLD, MUX, TNR.v, GDX
Finance And Economics:
|Shanghai Gold Exchange delivered||1,671.6|
|HK exports to China||164.9|
|Less Chinese exports to HK||264.9||_______|
|Net imports into China||1,571.7|
|Less exports to China||164.9|
|Less re-exports to China||1,077.5|
|Less exports to rest of the world||46.0|
|Less re-exports to rest of the world||78.8||_______|
|Net imports into HK (vault storage)||559.0|
|Total identified imports for China and Hong Kong||2,130.7|