Thursday 12 April 2012

Stories from China


That should be telling us something!

China's gold imports surge 587% in 2012: HKCSD
China is not only buying gold, but it is doing so at a super-aggressive pace, latest data from the Hong Kong Census and Statistics Department (HKCSD) shows. China is one of the largest gold markets in the world.


11 April, 2012

As per the data, China imported 72,617 Kilograms of gold in just the first two months of 2012. This is 587% higher than the 10,564 Kilograms imported during the same period last year- Chinese buying has climbed 5 fold in less than a year.

Of course the fact remains that China's overall purchase data is unavailable as the government rarely releases them. As such, investors tend to watch out for gold shipments from Hong Kong as an indication of Chinese buying. Traditionally, imports from Hong Kong have accounted for about 50% of China's total gold imports, says Goldcore. As such, it could be safe to assume that China is passing through a massive buying spree

The aggressive purchases will possibly make China the biggest gold importer in Q1, 2012, displacing India yet again. A string of higher taxes and weak consumer demand has seen India's apppetite for gold falling and many forecast that Indian demand could infact fall by 50% in the March ending quarter.

China's record levels of buying is sure to put smiles across Gold bulls who have been disappointed from the Indian demand of late. Combined with China's higher inflation and lower growth forecasts, it could be safe to assume that the gold bull market is here to stay

Other stories from China:

"Vehicle sales in China fell 3.4 percent year on year in the first three months of 2012, an industry group said Wednesday, as the world's largest auto market slows.

"A property developer in China's Hangzhou city has filed for bankruptcy protection, falling victim to the government's two-year campaign to rein in property prices and pointing to wider problems ahead in the country's real-estate market."

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