Gold Imports from Hong Kong more than Doubled in 2013
Gold imports from Hong Kong to the Chinese mainland doubles from the previous year in 2013 to reach a record of around a thousand tons showing a sharp fall in prices that led to an unprecedented demand. The Chinese mainland imported about 1,158 tons of gold from Hong Kong compared with the 557 tons of gold that was imported in 2012 this over taking India as the world’s biggest gold buyer.
The demand for gold ranging from bars, jewelry and coins was increase as prices fell 28 percent last year the first decline after a 12 year run. A strong Chinese demand for gold helped in providing a floor for prices that have been dropping as the US Federal Reserve policy shifting towards curbing monetary stimulus that reduced that appeal of gold. Furthermore gold backed exchange trade has been hit by big outflows.
The increase in demand in the Chinese mainland has help counter the drop in demand in India wherein a high current account deficit has forced the government to impose curbs on gold imports. Gold flow into the Chinese mainland has increase to 94 tons in December from 76 tons in November.
Total imports coming from Hong Kong that was purchased the resold to Hong Kong was at 126 tons up from 107 tons in November.