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Chinese Gold Imports From Hong Kong Rise Sixfold

Rajdeep Sandhu, 14 November 2011

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China‚Äôs gold imports from Hong Kong jumped six-fold in September on the previous year, according to Reuters, as Asian investors seek out an inflationary hedge and wealth haven. 

Imports from Hong Kong, considered a bellwether for China which does not publish its gold imports, leapt 30 per cent in September on August's total to a record 57 tonnes, and boosted total imports for this year to over 200,000 kilograms, more than double last year, said the newswire.

The continued uncertainty in the global financial and political sphere is fuelling investor demand for gold as a safe haven for their money. Also growing wealth in the emerging markets is driving demand for more gold jewellery. 

Gold's rocketing value does not seem to be dampening demand. The price of the yellow metal soared to a record of over $1,900 per ounce in the summer before retreating slightly in recent months. Last week Pictet, the Swiss private bank, revised up its target forecast on gold to $3,000 per ounce from a previous target of $2,000. To read the story click here.

Over the past decade, gold holdings by private investors have increased by 24 per cent, according to a report by the World Gold Council called Gold: Alternative investment, foundation asset. The firm believes that gold remains an under-owned asset making up only 1 per cent of global financial assets in private hands.

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