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China’s HK Gold Imports Reach October Record High

Imports of gold from Hong Kong by China reached an all-time high of 85.7 tonnes in October, a 50 per cent hike from a month ago and up by more than 40 times from a year ago, data from the Hong Kong government showed.

It was the fourth consecutive month that China's gold flows from Hong Kong reached new highs, accounting for more than one-quarter of overall global demand.

Tom Kendall, precious metals analyst at Credit Suisse in London, said in the Financial Times he sees overall Chinese imports of the yellow metal hitting 470 to 490 tonnes for the full year, up from last year's 245 tonnes.

China had been encouraging its citizens to buy and hold physical gold, either in jewelry, coins or in bullion bars, in a bid to build financial reserves in assets stronger than the U.S. dollar, euro and other weakening currencies. The Chinese were forbidden to buy physical gold on pain of imprisonment until 2002, when government lifted the ban.

As of April 2009, official data from the People's Bank of China revealed some 33.89 million fine troy ounces were added to China's gold reserves.

Chinese consumer demand for gold bars and coins rose 24 per cent from last year to 60.2 tonnes in the third quarter of 2011, while demand for gold jewelry hiked 13 per cent.

In November, the World Gold Council reported that strong demand in investment and jewelry will drive China's total gold demand to hit 750 tonnes this year.

Chinese consumer demand for gold bars and coins rose 24 per cent from last year to 60.2 tonnes in the third quarter of 2011, while demand for gold jewelry hiked 13 per cent.

Global appetite will push further the yellow metal's unprecedented decade-plus bull run. The price of gold bullion is going towards its 11 th year of consecutive annual gains aid by fears of a fiscal recession of pandemic proportions, ultimately displacing the boom-and-bust cycle norm. Prices are expected to hit $2,000 per ounce by mid-2012.

Read more:

China's Gold Output Up 3.87%

Global Demand for Gold No Signs Yet of Wavering

China on Gold-Buying Binge, Altering World Market Prices

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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