Wednesday, January 11, 2012
Demand for gold bullion in China continues to surge.
Mainland China’s imports from Hong Kong surged to 102,779kg/oz from 86,299kg/oz in October. This is a 20% increase from the already high number seen in October and a 483% y/y increase.
The run into Chinese Lunar New Year has again seen higher than expected Chinese demand for gold and China’s voracious appetite for gold is surprising even analysts who are positive about gold.
As Chinese people’s disposable incomes gain and concerns grow over inflation and equity and property markets, Chinese consumers and investors are turning to gold as a long term investment hedge.
There is informed speculation that commercial Chinese banks may have taken advantage of the recent price dip to build stocks of coins and bars and accumulate bullion.
China’s demand for physical gold bullion has rocketed past India with the country now overtaking India in the third quarter as the largest gold jewellery market according to the World Gold Council.
Full story here.