Hong Kong posts record gold exports to China
China's insatiable appetite for gold is driving Hong Kong's gold traders to seventh heaven as exports surged 19%.
Hong Kong's gold exports to China surged 19% to 102,799 kilograms in November from 86,299 kg in October as Chinese continued to cling to gold as a hedge against turmoil in the financial markets. The November sales is a record, said the Census and Statistics Department.
Gold demand is zooming in China where concerns about inflation bolster purchases. China overtook India in the third quarter of 2011 as the largest gold jewelry market, according to the World Gold Council.
Surprisingly, China is also the world’s biggest producer. The huge increase in November was also caused by discounts given to Chinese buyers.
“China’s appetite for gold is very strong and growing,” said Tao Jinfeng, chief investment consultant at Haitong Futures Co., China’s largest brokerage by registered capital.
“The few months before the Lunar New Year is typically the peak demand period for Chinese people.”
Gold climbed 10 percent in 2011, up for 11th year as central banks joined investors in buying bullion to diversify assets.
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