Wednesday, January 16, 2013
According to the MIIT statement, domestic demand is set to surpass 1,000 tons by the end of 2015. This vastly improves the fundamentals for gold as a long term investment and silver for some extra upside potential. Keep in mind, these are the government reported numbers that only reveal what they have declared. There have been numerous reports of gold smuggling into China that would never be found on the books so use these figures as base levels. The ultimate impact of increasing their gold demand 500 tons per year could be enormous. India's demand has recently been curbed by government actions to slow down the physical acquisition by introducing new paper backed ETFs, but that doesn't stop under the table transactions. The IMF World Gold Council recently came out with a report showing how in November, China imported 90.8 tones of gold. That was double the 47 tonnes the imported the previous month in October bringing their annual import amount to over 800 tones, double what they imported in 2011. To put this in perspective, the 800 tones of gold imported in 2012 will exceed all of the official holdings of China. Also, during 2012 the Chinese bought $39 billion of gold while they bought under $10 billion of worthless U.S. Treasuries. Stay tuned on http://DailySilverUpdate.com for future updates about China's gold buying craze.