China’s Secret Gold Rush

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?

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Wayne Ellis

Wayne Ellis has been involved in the financial publishing industry for more than 15 years. During that time, he has helped to edit, to market and to launch products and services for Ernst & Young, LLC, Fidelity Investments, Agora, LLC, and Eagle Financial Publications. He currently puts his broad-based experience and industry expertise to use as a contributing writer for Eagle Financial Publications. He also is a graduate of Arizona State University.