Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

The Gold Bull Era: Key Tactics Now
By: Stewart Thomson

Types of Gold Standards
By: JP Koning

Commodities Are Flashing a Once-in-a-Generation Buy Signal
By: Frank Holmes

Fake Markets Produce A Fake Economy
By: Steven Saville

Will Kim’s Denuclearization Dethronize Gold?
By: Arkadiusz Sieron

Russia Buys 300,000 Ounces Of Gold In March – Nears 2,000 Tons In Gold Reserves
By: GoldCore

Gold Seeker Closing Report: Gold and Silver Fall Almost 1% and 3%
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 4 23 2018
By: Ira Epstein

Frustrated by the Dormant Silver Price? Don’t Be, Says History, the Upsurge Is Coming
By: Jeff Clark

Avoiding the Obvious
By: Theodore Butler and Jim Cook


GoldSeek Web

Chinese gold imports double-up on a year ago as China becomes world’s largest consumer of gold

By: Peter Cooper, Arabian Money

-- Posted Wednesday, 6 February 2013 | | Disqus

China replaced India sometime last year as the world’s largest consumer of gold and gold imports to mainland China from Hong Kong are presently running at more than twice the amount recorded a year ago.

According to data produced by Bloomberg gold imports from Hong Kong jumped by 94 per cent to 834.5 tonnes in 2012 with a monthly record of 114.4 tonnes in December. China is also the world’s largest gold producer but that has not been enough to satisfy its ravenous appetite for the yellow metal.

New gold champions

It was only a year ago that gold traders in the Sharjah Old Gold Souk told ArabianMoney that their biggest buyers were the Chinese looking to get out of the US dollar (click here). Gold is also a diversification against the risk that the Chinese economic miracle will one day run out of steam and local asset bubbles deflate.

We don’t really accept the argument offered by Bloomberg that the surge in gold consumption is simply down to the fact that the Chinese are getting wealthy. GDP growth is a fraction of the advance seen in gold consumption last year.

The Chinese read the same financial pages as everybody else and want to hedge against the rising risk of a bond market crash, just like many other investors. Their central bank has been pushing for gold to be included in a new IMF super-currency.

But they do appear to have been opportunist in taking advantage of the bargain gold prices available last year, with gold off its all-time high of $1,923 set back in October the previous year. The smart money has been moving into real assets (they are also buyers of Dubai property, for example) to diversify risk and the central bank will almost certainly emerge as the biggest buyer of gold.

Undercover buyers

Chinese gold buying is inscutable and often kept hidden for as long as possible. Bloomberg’s economists have done well to collate this data now to show this major change in global gold consumption.

Where do we go from here? Will the Chinese consumption of gold double again this year? Will it impact on the gold price? Well the trend is definitely up and not down and China is likely to get its first gold ETFs this year (click here).

As we have remarked before the advent of ETF investment for gold is likely to be big news for China’s 1.3 billion population. But as it happens gold imports have already doubled in advance of the gold ETFs.


-- Posted Wednesday, 6 February 2013 | Digg This Article | Source:

comments powered by Disqus

About Peter Cooper:
Oxford University educated financial journalist Peter Cooper found himself made redundant by Emap plc in London in the mid-1990s and decided to rebuild his career in Dubai as launch editor of the pioneering magazine Gulf Business. He returned briefly to London in 1999 to complete his first book, a history of the Bovis construction group.

Then in 2000 he went back to Dubai to become an Internet entrepreneur, just as the dot-com market crashed. But he stumbled across the opportunity to become a partner in, which later became the Middle East's leading English language business news website.

Over the course of the next seven years he had a ringside seat as editor-in-chief writing about the remarkable transformation of Dubai into a global business and financial hub city. At the same time prospered and was sold in 2006 to Emap plc for $27 million, completing the career circle back to where it began a decade earlier.

He remains a lively commentator and columnist as a freelance journalist based in Dubai and travels extensively each summer with his wife Svetlana. His financial blog is attracting increasing attention with its focus on investment in gold and silver as a means of prospering during a time of great consumer price inflation and asset price deflation.

Order my book online from this link


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2017 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of, its affiliates or advertisers. makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, is strictly prohibited. In no event shall or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.