China Gold Imports from Hong Kong

In December of last year there was a big concern that China would stop importing gold due to lack of demand. This was derived from the fact that gold imports from Hong Kong to China dropped 62% in December 2011. As a consequence, the gold price plunged from $US 1700/ounce to under $US 1600/ounce.

Lately though, the gold imports from Hong Kong to China have stabilized around 40 tonnes/month (Chart 1). This drop of 62% seems to be huge, but when we look at the long term chart the picture is entirely different.

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