With gold prices on track to log a 12th consecutive annual gain, China is beginning to take a fresh shine to the yellow metal.
Now China's buying gold in an attempt to play catch up with the United States and other influential nations, the London Bullion Market Association reports.
At a recent conference in Hong Kong, Chairman David Gornall told the association's conference, "When comparing China to the U.S., it would seem that in China, gold asset allocation can only go in one direction. The country has only 2% of its reserves in the form of gold compared with the U.S. at 75%."
Other developed countries, including Germany, Italy and France, maintain a gold reserve in excess of 70%. Meanwhile, China's share lags, data from the World Gold Council reveals, trailing at a paltry 2%.
Since 2009, The People's Bank of China has not disclosed any changes to its gold holdings. At that time, the bank noted its stash had risen by 76% to some 1,054 tons. Its cache is set to swell again as the country, facing an economic slowdown from a plethora of lethargic international markets, gets defensive.
The spike in gold imports to China, via Hong Kong, reveals new significant accumulations of the commodity. Chinese imports of the precious metal totaled 69.7 metric tons in September, a striking 22% increase from a year ago.
Gold Prices 2013
With a U.S. President Barack Obama win in Election 2012, look for gold prices to soar above $2,000 an ounce in 2013. Prior to the election's results, gold players had been on the sidelines but they jumped back in and took the precious metal back above $1,700 per ounce on Tuesday. On Wednesday, gold rose […]