There has been no let up in the buying of gold by China despite the continuous price falls this year. Gold imports via Hong Kong in October hit 130 tonnes, that was the second highest monthly total in history and a massive jump on the same month last year.
China’s imports through Hong Kong will easily top 1,200 tonnes in 2013. But these are just gold import figures that are made public. Gold also enters the Middle Kingdom through other trade routes that are not as scupulous with their data records, notably Shanghai.
2,000 tonnes in 2013
If you add these non-recorded gold imports then analysts say the total quantity of gold imported into China this year will top 2,000 tonnes. Why are they buying it? Nobody else seems to want gold right now. It’s the most unloved commodity outside of China.
Gold bullion is physically moving from the West to East out of London, Zurich and New York and into vaults in China. The gold is coming from sales by the big gold exchange traded funds as well as newly mined global production. China is a major gold producer itself but not a bar leaves the country.