China gold buying “stuns” precious metals traders – demand unbelievable
The volume of Chinese citizens’ purchasing of gold running up to the start of the Chinese New Year has completely stunned traders leading to big price premiums in Shanghai.
Author: Lawrence Williams
LONDON -Consider the following paragraph from London’s highly respected Financial Times – a publication not usually prone to hyperbole: Precious metals traders in London and Hong Kong said on Wednesday they were stunned by the strength of Chinese buying in the past month. “The demand is unbelievable. The size of the orders is enormous,” said one senior banker, who estimated that China had imported about 200 tonnes in three months.
Now China has already reported a five-fold increase in gold imports over the first 10 months of 2010 and if the estimate quoted above is correct the country may well be seen to have imported upwards of 320 tonnes in the full year which brings the total to within a hairsbreadth of Indian imports – and India has for many years been the world’s largest importer of gold by a considerable margin. If Chinese gold purchasing momentum continues at anywhere near close to current levels it will soar past India as the world’s largest importer of the yellow metal this year.