Gold inventories at the Shanghai Futures Exchange vaults are skyrocketing: Deliverable gold in the Shanghai Futures Exchange, measured by warehouse warrants, is up to a record 104 tonnes. Warehouse warrants represent physical gold stored in approved exchange vaults that can be held, transferred, or used as collateral. Warrants have risen more than 500% since mid-2025. By comparison, until Q2 2024, warehouse gold warrants had not exceeded 5 tonnes for years. This comes as Chinese demand for physical gold has soared to unprecedented levels. Physical gold demand in China is exploding.(The Kobeissi Letter)