October Chinese gold imports from HK massive 131 tonnes Net Chinese gold imports through Hong Kong in October exceeded 130 tonnes – the second highest figure on record and showing that Chinese demand is still rising. Author: Lawrence Williams Posted: Wednesday , 27 Nov 2013 LONDON - Far from slowing down, net Chinese gold imports through Hong Kong accelerated in October to 131.2 tonnes according to figures sent to Reuters today - the seventh month this year that China has imported over 100 tonnes of gold and the sixth in a row. Imports appear once again to be being stimulated by the lower gold prices currently prevailing. A Bloomberg comment suggests the figure was slightly lower at 129.9 tonnes and that this demand strength is also due to jewellers and retailers purchasing gold to build up stocks ahead of what is usually the peak demand season for gold purchases on the Chinese mainland and in Hong Kong itself. China net gold imports from Hong Kong 2013 to date Month (tonnes) January 20 February 61 March 136 April 77 May 106 June 102 July 113 August 110 September 111 October 131 Total year to date 967 Again this increased volume of imports through the former British Crown Colony highlights how conservative the estimated figure for Chinese gold imports via this route of 1,000 tonnes, so frequently quoted by most media, was when it was made by the World Gold Council, using GFMS figures, much earlier in the year. The statistics now show that the 1,000 tonne figure has probably been reached comfortably already now we are almost at the end of November and the likely figure for imports through Hong Kong alone this year will be more like 1,200 tonnes. This ties in strongly with the recent report from China’s biggest jewellery company Chow Tai Fook of almost doubled sales through the first half of the current year as the Chinese continue to buy gold in volume. But, as we have said before – and there is an increasing amount of evidence to support this – that China also imports gold through other routes, notably Shanghai – and that total import figures now look likely to be nearer 2,000 tonnes - some analysts put them even higher - rather than those shown by the Hong Kong figures alone. Together with China’s likely domestic gold production this year of 420-430 tonnes, Chinese annual consumption this year, on the more conservative estimates, now looks like being in the order of 2,400-2,500 tonnes, or well over 80% of the latest estimates of world new gold output this year of an increased 2,900 tonnes – the rise in global production over last year largely being because of high grading by the world’s major producers to compensate for lower gold prices. Thus gold continues to move from West to East, seemingly at an accelerating rate with China being fed by the gold bleeding from the big gold ETFs as well as from global new mined production. When are investors in the West going to wake up to the fact that if China carries on buying at current rates – and there’s no sign of any slowdown – there soon won’t be any physical gold left to trade in the traditional markets – it will all be being swallowed up by China and the other eastern consumers. If anything points to a massive price squeeze ahead this has to be it!
Posted on: Tue, 03 Dec 2013 20:40:19 +0000
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