Author Topic: China Gold Reserves vs. China Gold Production  (Read 2868 times)

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Offline Panda Halves

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China Gold Reserves vs. China Gold Production
« on: November 07, 2011, 03:38:24 AM »
The divergence of physical gold production by China versus claimed actual reserves by China is almost laughable.
(especially when they ceased exporting precious metals as part of official policy)
Take a look at these two charts and the corresponding articles.

"China gold production is increasing for the eleventh consecutive year. China is the world largest gold producer for the third time in history with 345 tons of gold produced this year. Furthermore among the gold-producing countries, China, with its increasing gold production, seems to go against the general trend.of decreasing gold production.  China has already announced that its gold production is expected to increase up to 400 tonnes within the next three years."
"The People’s Bank of China is almost certainly continuing to quietly accumulate gold bullion reserves. As was the case previously, they will not announce their gold bullion purchases to the market in order to ensure they accumulate sizeable reserves at more competitive prices. They also do not wish to create a run on the dollar – thereby devaluing their sizeable reserves." - world gold council


Offline BChung

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Re: China Gold Reserves vs. China Gold Production
« Reply #1 on: November 07, 2011, 06:30:20 AM »
I am more interested in the amount of GOld that is being held in the country overall including public and businesses..... will have any data of that?

I think its not a surprise that the Gold Reserve is low, since Beijing policy is indirectly holding gold through us the citizens.

Copy Right @ SCMP:


China's gold imports from Hong Kong jumped 30 per cent on the month in September to a record 57 tonnes, showing appetite in the world's second largest consumer of the precious metal continued unabated through a market rout.
The September figure continues a sharp rise in shipments from Hong Kong, up sixfold since May, which dealers said was being largely driven by investment demand.

Exports to China jumped in June and have staged hefty gains in the following months, just as gold embarked on a record-setting rally amid growing uncertainty over global growth and the euro zone debt crisis.

The Hong Kong data provides the only official glimpse into the mainland’s gold imports, as the there are no central government numbers.

“There are not many investment options as the property market is going through a crackdown and stock market is not doing well,” said Ronald Leung, a physical gold dealer at Lee Cheong Gold Dealers in Hong Kong.

“Gold is the only thing they can trust.”

A total of 56,896 kilograms of gold entered the mainland from Hong Kong in September, pushing the total in the first nine months to more than double on the year at 201,068kg, the Hong Kong Census and Statistics Department said on its website ( ).

Spot gold prices slumped more than 10 per cent in September, after hitting a record high above US$1,920 an ounce on Sept. 6, prompting strong buying on the physical market.

The run-up to the week-long public holiday in China at the beginning of October – a busy week for retailers – also helped boost China’s appetite for bullion in September, dealers said.

“Chinese buyers think $1,700 is a cheap tag for gold, so we saw a lot of physical buying interest in September and October when prices were below that level,” said a Shanghai-based trader.

Gold bar premiums in Hong Kong doubled during September to US$2 an ounce over spot prices by the end of the month, and hit more than US$3 in early October.

China, the world’s largest gold producer, churned out a total of 226.388 tonnes of gold in the first eight months of the year, which at the same average monthly pace would translate into annual output of nearly 340 tonnes.

Beijing does not publish gold trade data. But in a rare revelation last December, the head of the Shanghai Gold Exchange said that China imported 209.72 tonnes of gold in the first 10 months of last year.

During the same period, gold flows from Hong Kong to China stood at 90.16 tonnes, or 43 per cent of total purchases as given by the exchange.

Analysts expect China to eventually overtake India as the world’s largest gold consumer as it has shown explosive appetite for bullion in the past few years.

In last year, India’s gold demand stood at 963.1 tonnes, towering over China’s 579.5 tonnes, according to the data from the World Gold Council.

Offline BChung

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Re: China Gold Reserves vs. China Gold Production
« Reply #2 on: November 07, 2011, 06:32:07 AM »
So I am actually more interested what the net import of gold and other preiious metals during the last decade. Not to mention there are people like us who sent precious metals through mail not recorded.....