Thursday, December 2, 2010

China increases Gold imports

It's interesting, not only is China the worlds largest Gold producer, but they are also importing significant amounts of the metal. While China's official Gold holdings remain quite small in comparison the US, Germany and Italy, it appears obvious that they are stealthily acquiring a larger position. Of course they would not want it to appear that way or it could become very expensive for them to continue along this route.

China gold imports headed for big rise
China’s gold imports are on track for a sharp increase this year, with data for the first 10 months showing bullion shipments up more than four times amid rising interest among investors seeking out a hedge against inflation.

Bullion imported into China in the January-to-October period totaled 209.7 metric tons, compared to 45 metric tons in all of 2009, according to reports Thursday citing figures announced by Shanghai Gold Exchange Chairman Shen Xiangrong.

If current trends hold, China’s gold imports could rise nearly sixfold by the end of the year, according to calculations based on monthly averages.
Market Watch

China is somewhat a wild card in this precious metals bull market. It was only 2009 that it's citizens could start buying the physical metals, I think we are yet to see the real impact this could have on a market already short on physical product.

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