How Much Gold Does the People’s Bank of China Have?

One of the most fascinating developments in the gold market since the turn of the century is China’s burgeoning role as a leader in the sector. The Chinese have been buying gold and the Chinese have been producing gold in record numbers now, whereas 15 years ago, they played a much smaller role in the global gold market.

As investors we want to have accurate data regarding China’s gold: how much is produced, imported, exported, and held. Unfortunately the People’s Bank of China is presumably not very forthcoming when it comes to reporting its gold holdings, and this makes the global fundamental picture of gold somewhat opaque. READ MORE ……..

china_gold_faceGold demand in China grossly underestimated, expert says

The market is now “driven by Asia,” notes BlackRock fund manager

Koos Jansen of the In Gold We Trust blog and Bullion Star has long contested the so-called “official” statistics on China’s gold consumption, and now he’s pointing to a bombshell speech from the head of the China Gold Association that confirms his argument.

Jansen says that import/export figures tracking gold shipments between mainland China and Hong Kong are inadequate because they don’t reveal the true demand picture. Likewise, he disagrees with the World Gold Council’s data on Chinese purchases, saying its estimates of about 1,000 tons are grossly lowballed. Jansen cites the Shanghai Gold Exchange as the best gauge of Chinese demand.

Demand pegged at 2,000 tons: In a new blog post, Jansen says a speech from a top Chinese gold industry player, now available in an English translation, confirm his estimates of much-higher gold demand. READ MORE ………

Why the Zerohedge Analysis of China’s Gold Buying is Wrong

The stench of a well-trodden cow pasture is emanating from the Zerohedge article which tries to blame the decline in the price of gold during 2013 on China’s use of a complicated commodities financing structure. Long time readers know that I always give ZH credit for digging up a lot of information and news items that we might otherwise miss. It is invaluable in that respect. However, Zerohedge has historically missed the boat with respect to knowledge and understanding of the precious metals market.

Zerohedge has tried to connect the price-action in the price of gold during 2013 with the amount of gold futures selling which accompanies the CCFD gold transactions for the purposes of hedging. READ MORE ……..

China’s Secret Vaults: Where Is All The Missing Gold?

China has recently replaced India as the world’s largest consumer of gold. Uniquely, it also ranks as both the largest producer and the biggest importer of gold. Yet a big question surrounds the true state of the Chinese demand for gold; the answer would determine how global gold prices are likely to fare. The expectation that Chinese investors will sustain a voracious appetite for gold has helped to spark a recent rebound in gold prices.

Speculation abounds about a large trove of gold that seems to be missing from the global market. Analysts calculate that up to 500 tons or more are stashed away, based on the difference between China’s domestic gold production of 428 tons in 2013 plus its estimated gold imports of at least 1,158 tons, and its annual demand of about 1,066 tons. The Chinese government does not release an import figure, so this number is disputed. READ MORE ……..

Top 10 nations stockpiling gold

Discussions involving gold hoarders tend to generate images of the stereotypical nervous Nellie hiding out somewhere in the wilderness. Uncivilized and irrational, they count their so-called barbaric stacks of gold, which are located next to a lifetime supply of canned goods. While this portrayal may be amusing, the biggest hoarders of gold are some of the most advanced nations in the world.

Last year, global gold demand reached 3,756.1 tonnes or metric “tons” — nearly 3.8 million kilograms, or 8.3 million pounds. That amount is valued at $170 billion, according to the World Gold Council. Demand was down from the prior year due to heavy outflows in exchange-traded funds and similar products, but bar and coin demand surged 28% year-over-year as investors still had an appetite for hard assets. READ MORE …….

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