China Accelerates Gold Accumulation

May 9, 2013 2:34pm NYSE:GLD NYSE:IAU

china etfsGold Silver Worlds: The amounts in this article, visualized in the graphs, are from another degree than simply noteworthy. It is more of an order of unbelievable.


As far as the first three months of 2013 concerns, China’s gold usage mounted to 320 tonnes. That figure is a combination of the Chinese production and imports from Hong Kong (via BullionStreet):

World’s largest gold producer and second largest consumer China’s total gold usage reached 320.54 metric tonnes in the first quarter, China Gold Association said. According to CGA, purchases of gold bars surged 49% to 120.39 tonnes while jewelry gained 16% to 178.59 tonnes. Gold consumption in China soared 26% in the first three months of 2013 from a year ago amid strong bullion sales and rising jewelry demand.

The incredible spike came in the month of March. China’s net gold inflows from Hong Kong rose to 223.519 tonnes. The following chart shows the spike in the most right blue bar which represents March 2013 (courtesy of Sharelynx):

China Gold Imports March 2013 gold silver general

Looking at the total gold holdings of the country, the picture becomes even more dazzling. The green line on the following chart represents the total gold holdings of the country. Note how China is not only importing huge amounts, but also keeps its own production for itself. It should be noted as well that the purple bars are the officially communicated gold holdings. Insiders like Jim Rickards calculate that China’s real gold holdings are close to 3 or 4 times higher. Chart courtesy: GoldSilver.com.

Gold China 2000 2013 gold silver general

To put these figures into perspective, one should know that the world production (excl Russia & China) is some 2,300 tonnes (source). 170 million tonnes is above the ground gold available in the world. The largest official gold holdings:

  • 8,133 tonnes is held by the US
  • 3,391 tonnes is held by Germany
  • 2,814 tonnes is held by the IMF
  • 2,451 tonnes is held by Italy, 2,435 by France
  • 1,100 (approximately) tonnes are held by the SPDR Gold Trust ETF (NYSEARCA:GLD)

Maybe, just maybe, China is getting too worried about the outlook of the world reserve currency and they are accelerating their diversification of currencies. So there appears someone left who is not putting its money in the US stock market. (courtesy: Merkinvestments.com)

currency wars china US gold cartoon gold silver general

 

This article is brought to you courtesy of Gold Silver Worlds.


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