CHARTS: The coming critical minerals trade war is BRICS short of a load
"While a large number of countries around the world continue to talk about securing raw material supply, China is actually doing something about it."
Gold imports into China rose to an all time high last year according to a Bloomberg report.
Driven by rising incomes, imports rose from 431.2 tonnes to a 834.5 tonnes according to data from the Census and Statistics Department of the Hong Kong government.
Imports in December alone were 114,405 kilograms, a monthly record.
Demand is expected to be boosted further by the imminent launch of a gold-backed exchange traded fund in the country. Last year a ban on interbank gold trading also contributed to rising demand.
Chinese retail investors have flocked to gold because of a lack of other investment opportunities in the communist country.
Precious metal ETFs have been a massive success in North American and European markets and played a role in pushing gold to its 12th year of successive gains in 2012.
China – the world’s number one producer of gold – is also on track to displace India at the top of the gold table.
An import tax – along with a weak rupee – has led to a slump in demand in India, long the world’s number one consumer of gold.
In 2012, India’s gold imports are expected to be in the region of 800 tonnes worth over $40 billion, compared to 1,000 tonnes in 2011.
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