Gold Shipments Decrease by 50 Percent as Demand Weakens
Shipments of gold from the mainland to Hong Kong has decreased by more than 50 percent in November as the demand weaken after gold prices slip lower for a third month. Gold net imports after deductions flowed from the mainland into Hong Kong were around 69 tons in November which is lower from the previous 129 tons in October. Still the amount for the first 11 months is double to more than a thousand tons.
Gold prices for the first annual drop in 13 years in three decades as U.S. Federal Reserve and it will be tapering the stimulus. As some investors are starting to lose faith in the precious metals amid a record rally in U.S. equities and gold holdings in the exchange traded products have slumped by 33 percent since last year. Expectations on higher prices are starting to diminish and the Chinese investor’s appetite for gold is waning. Evidence from retailers is also presenting the same picture on sales that the second half of 2013 are not as brisk for the first half of the year.
Gold for immediate delivery in London is also traded at US$1,198 a ounce down 4.4 percent since December a drop of 5.3 percent in November. Prices also tumbled to a 34 month low of US$ 1,180 from June. Meanwhile gold bullion with 99.99 purity on the Shanghai Gold Exchange has decreased by 6.7 percent in November a steady decline for the third month and has fallen 38 percent from a record US$ 1,921 in 2011.
China is still looking to overtake India as one of the world’s biggest gold bullion consumer since demand has reached 1,000 tons by last year.