China Not Only Imports Gold Through Hong Kong
Posted on January 21, 2014 by admin
21-Jan (InGoldWeTrust) — There are some gold analysts that create presumptions about Chinese gold demand by looking at how much gold Hong Kong net exports to the mainland, as if the mainland only imports gold from Hong Kong. I think this a misconception; just because China doesn’t officially disclose their gold trade numbers doesn’t mean they only import gold through Hong Kong.
The mainland has 22,117 kilometers (13,743 miles) of border, and I can’t think of one reason why gold could not enter through ports located anywhere at the border. To give you a small example, this is an article from the China Gold Association which reports on gold ore imports from Kazachstan in 2012.
…Alashankou (A on the map) in the Xinjiang province is the main port from Kazachstan to China. 16,800 tons of gold ore is approximately 4000 ounces of fine gold, not much. However, it’s an example of the Chinese buying all the gold they can get their hands on. If you read the website of the port Alashankou it states the import of metal ores is still increasing. Gold is not only coming in through Hong Kong, it can be imported from anywhere. CME started to recognize this in September 2013: