Chinese gold imports from Hong Kong were doubled to record a new high in March while purchases were improved by buyers of the second biggest consumer after India. Bullion demand was also improved in China, world’s second biggest economy.
China’s mainland buyers purchased 223,519 kilograms of gold, counting scrap gold. If compared with February, 97,106 kilograms of gold, which was a big increase, according to documents released from Hong Kong on Tuesday. Also Mainland’s net imports were 130,038 kilograms, after subtracting flows from China to Hong Kong.
Last month’s delivery led gold to enter the bear market, prices sinking 14% in two days through April 15, the most viscous drop since three decades. The decline led to a gold rush in demand on jewelry, coins and bars from India, China and the U.S. Other reports indicate China’s consumption of increased from 10% to 26% in the first quarter as prices cut down.
According to the China Gold Association, on April 15-16, gold sales throughout China were tripled. Zhang Bingnan, deputy head of the association, stated on May 2 that gold jewelry records are heading towards a shortage.
According to the producer-funded World Gold Council, the first three months from an earlier year gold consumption in China rose by 26% to reach 320.54 tons. Consumption made 776.1 tons in 2012, lower than the previous year 779.8 tons. More than half the world gold demand is placed at India and China.