USA deliver less and less gold abroad

In the first half of 2019, the USA delivered 116 tonnes of gold to Great Britain alone, thus meeting the rising ETF demand. However, US gold exports as a whole are tending to decline.

 

US gold exports declining

The United States exported 27.2 tonnes of gold last June. Gold exports were 12 percent higher than in the previous month, but 31 percent lower than in June 2018. The figures come from the latest monthly report of the U.S. Geological Survey (USGS). Overall, there is a trend towards declining US gold exports.

 

ETF Gold for the UK

The largest share, 17.4 tonnes of processed gold, went to Great Britain. The metal stocks of the major gold ETFs are held there – at HSBC and the Bank of England. As exchange traded funds have received a high inflow in recent months in parallel with the rise in the price of gold, the operators have recently had to store larger quantities of gold in the corresponding vault. The gold deliveries from the USA are probably related to this. Since January, the USA has already delivered 116 tonnes to Great Britain.

 

Other customers

Another important addressee of American gold is Switzerland. In June, 3.8 tonnes went there, about half processed and half unprocessed. Swiss refineries process about half of the world’s demand for gold. In addition, 2.8 tonnes of gold left the USA for India. There is practically no direct supply of gold to China.

 

Gold from Canada

On the other hand, the USA imported 12.7 tonnes of gold in June – 21 per cent more than in the previous month but 26 per cent less than in the previous year. The largest supplier was Mexico, with 6 tonnes of mainly unprocessed gold. 1.6 tonnes of processed gold came from Canada. It is highly likely that these were Royal Canadian Mint products (e.g. Gold Maple Leaf). At 172.7 tonnes, the volume of imports in the first half of the year was 30 percent lower than in the previous year.

Net gold exports from the USA amounted to 14.5 tonnes in June. For the first half of the year, the figure was 102.5 tonnes, 26 percent less than in the same period last year.