The Banking and Strategy Initiative

Chillin' out till it needs to be funded

China building up Reserve Gold positions | Insight China – Commodities Insight

The plunge in imports in China could not trace back to Gold as Gold demand of 200 tons in coins and jewelry (WGC) was belied by more than 320 tonnes of imports by the nation in the last three months, underlining the reason why Gold prices will again be firm this year and might well keep growing from here. The Central banks addition of 120 odd tonnes comes in addition to purchases of 400 tonnes in 2010 when the Euro and the Gold created the first ruch of inflation in response to QE

india is a good consumer for jewelry while Chinese are getting ahead with bullion and coins purchases even as the WGC put out a demand of more than 4000 tonnes of the metal, of which 40% is now investment demand of 1650 tonnes. China bought 770 tonnes of the metal in 2011, 190 tonnes in the quatrter to DEcember as demand, beating India to  #2 by 20 tonnes.

Currently prices at $1730 show good demand

Demand from ETFs was up to 175 tonnes in 2011 and European demand close to 375 tonnes. While 2809 tonnes of the metal was produced, over 1600 tonnes were recycled

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