China’s Secret Gold Rush
China’s Secret Gold Rush (Reuters)
This year, China will surpass India as the world’s leading gold consumer. However, China is hoarding the barbarous relic through somewhat dubious means. To date, the world’s second-largest economy has imported nearly 20 percent more bullion from sources other than through its traditional avenue: Hong Kong. But the gold that has been tracked from Hong Kong to mainland China had tripled through September this year to almost 855 tonnes. But Reuters was able to deduce that China has also accumulated at least 133 additional tonnes, based on calculations from data supplied from Global Trade Information Services (GTIS). As an investor, I’m more than a little curious as to why China is amassing as much gold as possible, without announcing it, aren’t you?