There was a massive pattern modification in U.S. gold investment in May. Something quite extraordinary took place which hasn’t happened for several decades. While Switzerland has actually been the primary source of U.S. gold exports for lots of years, the tables kipped down in May as the Swiss exported a record quantity of gold to the United States.
Just how much gold? A lot. The Swiss exported 50 times more gold in May than their month-to-month average (0.4 mt) since 2015:
Amount: 1 tonne (Metric) (t) of gold mass
Equals: 32,150.75 troy ounces (oz t) in gold mass
As we can see, the Swiss gold exports to the United States are typically less than 0.5 metric ton a month. Moreover, for lots of months, there weren’t any gold exports. However, something huge changed in May as Swiss gold exports rose to 20.7 mt (665.500 oz).
The overwhelming bulk of gold flows from the U.S. have been exported to Switzerland and the United Kingdom (U.K.):
Furthermore, lately, the United States has been exporting more gold than it imports and produces. However, this changed in May as the Swiss exported more gold to the United States in 1 month than they have every year going back up until 2000:
Why the huge change? Could this have had something to do with the enormous gold price since the beginning of 2016, or perhaps was it due to political changes such as the upcoming BREXIT vote in June? Obviously, the BREXIT vote is now history as the British people voted to leave the European Union.
However, something motivated this enormous trend change in regular gold movements to Switzerland. Moreover, total U.S. gold imports in may shot up to 50 metric tons, almost double the 26.5 mt figure in April. Also, overall U.S. gold exports struck a low May as just 20.2 mt were shipped to foreign countries. Overall U.S. gold exports Jan-May 2016 of 139 mt are down 28% compared to 195 mt exported during the same period in 2015.
So exactly what’s going on here? Why the declining U.S. gold exports or surging gold imports from Switzerland? Are foreign countries demand less gold? I doubt it. Alternatively, how about the enormous increase in supposed gold flows into the Global Gold ETFs & Funds? While there is no other way of knowing just how much gold these Gold ETFs & Funds hold, something severely altered in May as the Swiss exported more gold to the United States in 1 month than they have every year for a number of years.Are reach Americans finally getting a lot more gold?
It will be intriguing to see that data for the next few months when the USGS releases their Gold Mineral Industry Surveys.