Physical #Gold demand at the Shanghai #Gold Exchange (SGE) will explode higher. Here is why: 1) Chinese ETFs and Funds will focus their physical #Gold buying at the SGE to enjoy 13% VAT EXEMPTION. 2) Chinese citizens will focus all their physical #Gold bars buying via direct SGE investment... standard #Gold bars buying & withdraws or via Chinese state-owned commercial banks investment standard #Gold bars buying & withdraws to enjoy 13% VAT EXEMPTION. 3) A big portion of Chinese citizens will buy VAT EXEMPT Chinese state-owned commercial banks investment standard #Gold bars and bring them to goldsmiths to make #Gold jewelry out of them. This is 13% cheaper than non-investment #Gold jewelry that they buy from #Gold jewelry stores since the #Gold jewelry stores will have 13% VAT rolled into their #Gold jewelry products. 4) Although Chinese #Gold recycling companies don’t need to pay VAT when they buy #Gold back from Chinese citizens, they will need to remit 13% VAT (to the Chinese tax authorities) if they sell that #Gold to any other businesses or individuals directly (No Special VAT invoice SVI for VAT deduction). So #Gold recycling companies must sell the recycled #Gold back at the SGE to enjoy 13% VAT exemption. Chinese #Gold recycling companies must become SGE members (if they are not already) to enjoy 13% VAT exemption by selling their recycled #Gold to their SGE member customers via the SGE.show more

Eric Yeung 👍🚀🌕

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