The latest gold import and export data from Switzerland, one of the few countries to report these flows in detail, as usual open up some interesting insights into global supply and demand. Overall Swiss gold exports rose by around 20% month on month to 177.3 tonnes making the country a net exporter in May. Generally Swiss gold imports and exports are pretty much in balance given that it mostly imports gold for re-refining and re-export.
While gold exports from Switzerland to China and Hong Kong both picked up in May, its principal country of imports was again the United Arab Emirates normally a recipient of Swiss gold, not a provider. Indeed in another reversal of normal gold flows, the U.K. was again the biggest importer of Swiss gold in May, necessary, we feel, to meet the big demand in London from the principal gold ETFs which vault their gold there. Exports to the U.S. were also unusually high. Again any gold flows to and from the U.S are normally in the eastward direction. We have surmised before that available supplies of physical gold in London are currently tight and this only serves to add weight to that premise and could also suggest that a similar position is arriving in the U.S. too given recent strong investor demand for bullion.
This post was published at LAWRIEONGOLD