World Gold Council Reports Significant Error In China’s Gold Holdings

It was only a week ago when we reported the latest official gold imports from Hong Kong to China. We wrote that China continued to hoard gold in an unabated way. Based on a Reuters article, we were able to publish the following data:

  • Net gold flows into China – excluding imports by Hong Kong from China – hit 110.505 tonnes in August, compared with 116.385 tonnes in July, data from the Hong Kong Census and Statistics Department showed.
  • Total imports from Hong Kong rose to 131.374 tonnes from 129.232 tonnes a month ago.
  • China’s net gold imports from Hong Kong have totalled 744.818 tonnes for the first eight months of the year, while India’s purchases as of August stand at a little less than 600 tonnes.

On Thursday this week, the World Gold Council published their monthly update about official gold holdings per country. As noted by ourselves, and confirmed by Zerohedge, the official holdings from China have not changed despite their massive gold imports in 2013. The first 8 months of this year saw 3/4th imports of the supposedly total holdings, which is significantly incorrect. Zerohedge notes that the World Gold Council data related to Chinese holdings have not been updated since April of 2009.

Is this a coincidence or is there a hidden agenda associated with this? All gold news related to the physical market has been dominated by China since 2012; it’s like the elephant in the room. We assume China does not care about official figures, as they probably gratefully use every price smackdown as an opportunity to add to their unofficial gold holdings.

 

official_gold_holdings_october_2013

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing