China’s Gold Rush Continues, Imports Another 131 Tonnes In October

It was a month ago when we discussed the September gold import statistics from Hong Kong to China. Net imports (after deducting flows from China into Hong Kong) were 109.4 metric tons in September and 110.2 tons in August. In our article China Imports 0.7% Less Gold Than August, Bloombergs Says Slowdown we showed that Bloomberg reported a “slowdown” for September. We showed the real facts: “since the year 2000, only two months saw significantly higher imports than September, i.e. March and July of this year. August and September (with a minor difference of 0.7%) were the third best months ever when it comes to gold imports to China through Hong Kong.”

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The latest statistics show that China imported another 131 tonnes of physical gold in October through Hong Kong.

It appears Bloomberg could not be further from the truth. It is yet another confirmation that readers should not (only) rely on traditional media outlets for correct precious metals news as those channels are biased. Admittedly, in the precious metals blogosphere the bias is significant as well. Picking the right sources for precious metals news and analysis is key.

Courtesy of Mineweb, the year to date net gold imports from Hong Kong to China total 967 tonnes. That is an astonishing amount. To put this figure in perspective: the global production in 2012 was close to 2500 tonnes and the US (having the highest gold reserves in the world) has 8133 tonnes of gold reserves.

china_gold_imports_hong_kong_october_2013

The above table shows the official statistics. But there is more. Earlier this week, it became official that China had been importing gold directly from other countries throughout the world. In China Imported An Additional 133 Tonnes Of Gold Directly in 2013 we discussed that the official figures are just partly reflecting reality and that China has already (largely?) surpassed 1000 tonnes of gold imports in the first 3 quarters of 2013.

It should not come as a surprise that “the People’s Bank of China said the country does not benefit any more from increases in its foreign-currency holdings, adding to signs policy makers will rein in dollar purchases that limit the yuan’s appreciation.” China has started to decrease its dollar holdings and is seeking for monetary safety which the country undoubtedly sees in physical gold.

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