China Gold Buying Surges 41% To 1,176 Tonnes In 2013

GoldCore's picture

Today’s AM fix was USD 1,273.50, EUR 933.86 and GBP 776.95 per ounce.
Friday’s AM fix was USD 1,260.00, EUR 928.72 and GBP 771.16 per ounce.           

Gold climbed $9.70 or 0.77% Friday to $1,267.10/oz. Silver rose $0.09 or 0.45% to $20.03/oz. Gold and silver were both up for the week at 1.78% and 4.54% respectively.

Gold is higher again today in all currencies and building on last weeks higher weekly close of 1.9% in dollars. Gold advanced 3.2% in January, the first monthly gain since August, as the benchmark MSCI World Index of equities slumped 4.1%.

Gold in U.S. Dollars, 1 Year - (Bloomberg)

Gold is now 5.7% higher so far in 2014 and it’s importance as a diversification is being seen again.

Gold’s gains come before new Fed Chair Yellen's testimony tomorrow. Market participants await her assessment of the poor payrolls data and for guidance regarding whether uber dovish monetary policy will continue.

Spot gold in Shanghai climbed to its highest level since December 26 as China returned from the Lunar New Year holidays. Gold of 99.99 percent purity on the SGE gained 0.8% to 250.25 yuan/gram.

China’s gold buying lept 41% to 1,176.4 tonnes in 2013. Gold bullion demand surged 57% and gold jewellery demand surged 43% according to the China Gold Association.

The demand surge has helped China become the world’s largest gold buyer.

Falling gold prices attracted store of wealth buyers for jewellery and bullion in China. This did not support prices in 2013, but could be the catalyst for higher prices in 2014. While gold ownership has surged in China in recent years, per capita ownership of gold in China remains well below levels in India.

Therefore, many analysts believe that the surge in demand is sustainable and will likely continue, underlining the shift in global demand from west to east.

As Gold Flows From West To East Singapore Emerges As Global Storage Hub

Find out why Singapore is now one of the safest places in the world to store gold in our latest gold guide - The Essential Guide To Storing Gold In Singapore 

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Sufiy's picture

Unprecedented Total Chinese Gold Demand For 2013 Was 2,181 Tons 

Yesterday WSJ, Reuters and Bloomberg have created a lot of buzz in mass media about unprecedented Chinese Gold demand of over 1,000 tons in 2013. Koos Jansen reports that actual demand was almost double that and stands at 2,181 tons of Gold, excluding PBOC purchases! Gold is trading higher today at high $1287 in Asia after breaching $1270 level. The Mother Of Short Squeeze has finally arrived in the Gold market and Janet Yellen testimony today will provide the catalyst.

SAT 800's picture

A Tonne here, and a Tonne there, and before you know it it adds up to real money. Oh, wait; it was real money to start with.

Indian_Goldsmith's picture

And do you guys know what is happening to the majority of gold import spurt in coutries like China, Indonesia, Vietnam, Singapore, Pakistan, Bangladesh?  All of it is ending up into the country at the centr of it all, which is run by a bunch of gold hating nitwits. Guess which...

fijisailor's picture

"All of it" is rather overstating it don't you think?  Yes those nitwits actually thought they could control a billion gold loving citizens.

Never One Roach's picture

Chinese understand these matters. China has been around for over 5,000 years.

America...only 200 years.

AngelEyes00's picture

As long as the Fed keeps taper gold will rise.

Castiel123's picture

Gold just topped $1280 in the Asia markets. Me thinks tomorrow will be very interesting.....

Bindar Dundat's picture



Where the hell is the monkey hammer?



PeakOil's picture

For more details: Unprecedented Total Chinese Gold Demand 2013

Koos Jansen's wonderful site.

JimboJammer's picture

China  is  smart  about  Gold  ...but  they   ignore  Air  and  Water  Pollution ....

fijisailor's picture

OK sufiy we have our close above $1270.  Where's that massive short squeeze?

whidbey-2's picture

Gold is going to do well, it will be 60 times silver, but pplt will be 200 higher than gld.  Try not to worry because PM will not be allowed to get out of the traditional price ratios which are very traditional except when the Germans find them too binding. Of course the price ratios they are not observed in the Vatican, or Greece.  In France the President has decreed that PM will be kept to pay off the banks who are creditors to the PIIGS. As for the Chinese the rumours are that they are reselling to India. In general, no one wants gold since its use in commerce is too much work. Use pre 1964 silvers coins and get a pickup.

Four chan's picture

i have learned gold price is the inverse of its demand. jp morgan chase school of real money and naked shorting.

Penniless Spectator's picture

Question for the gurus out there. Will silver stay at the 60+ to 1 ratio to gold, or wil it recalibrate to tradtional levels


MeelionDollerBogus's picture

There are no traditional levels. Silver moves exponentially to gold so there can't be a ratio.
Instead the pattern is this:
ln(silver) = gold x 3 / 2635 + 19/12 , price output being +/- 5% for silver price

and a longer term chart shows many other patterns:

For example, when gold is 3500 silver will be
261.95 +/- 5% and even 3500 / 249.48 = 14 but that's how the math works.
Your question makes no more sense than asking the ratio of velocity to acceleration from gravity. It's inapplicable.

maskone909's picture

past performance is not indicative of future results.

that said, i think the ratio will squeeze soon.  im going to make another silver purchase shortly

looking at 25 usd per oz in the next 3 months

Hongcha's picture

One of my favorite aphorisms I got from a Yahoo message board of all places.  Not attributed to anyone, wonder who said it...

"Money flows from the impatient to the patient."

willwork4food's picture


"Money flows from the impatient to the patient."

Truer words were never spoken.

Chupacabra-322's picture

Confucius says:

"He who hesitates, masterbates."

Four chan's picture

he who smelted, it delta'd it.

ltsgt1's picture

I think Obama is not satisfied with redistributing wealth only within the US. He wants to balance inequality of wealth in global scale.

He did say that he is a citizen of the world.

Seeking Aphids's picture

The global rebalancing is a long term phenomenon and has nothing to do with US presidents.

IPA's picture

When gold bugs start talking about it being ok that gold will probably go to 800, the bottom must be in. Gold bugs are doing that now. 

Sufiy's picture

is knocking hard on $1280 - and are down. Mother of Gold Short Squeeze Has Arrive! China Gold story is in WSJ, Reuters and bloomberg today, wrong low numbers, but making its buzz in mass media now.


Jim Rickards: Gold Set for Massive Rally

  Jim Rickards presents his hew book and talks about the real fundamentals supporting his call for the much higher price of Gold. It is the very good piece to continue our conversation about the state of the Gold market and its ongoing manipulations this weekend.


Toby Connor: The Great Inflation Of 2014 - Gold And Silver To Rise TNR.v, MUX, GDX, GLD, SLV

"Toby Connor provides very interesting technical view on the general markets, Commodities, Gold and Silver. Nobody can find inflation these days and his take on the final rise and bust in the general markets is very intriguing. Our own observations confirm the CRB - Commodities Index breakout and that Gold is knocking on the $1270 with huge break out to the upside after that. Supply and Demand picture provides further support to the technical observations in Gold and Silver markets these days. Where the Gold will come from in the future with China record buying continued? M&A activity will be driving the next Bull market in Gold and Silver miners."

dizzzave's picture

Jim Rickards is going to make more money pitching his new book to gold-tards than he ever will investing in gold.

Okienomics's picture

is knocking hard on $1280 - and are down. Mother of Gold Short Squeeze Has Arrive!"


Perhaps.  But those of us at this a while have read too dang many forecasts just like it.  Please do *not* invest in gold on the basis of rumors of imminent breakouts; invest instead on the expectation of an eventual breakout.  And take a lesson from the many z'hedgers who have lost their physical supply in boating accidents.

Silveramada's picture

I agree: gold is up 6% and finally is moving in the opposite direction than equities ( something that was not always true in  the past 2 yrs) as it should, we have important key resistance withing reach and WHEN gold will breakout silver will outperform gold in % BUT, do not forget that the manipulators have still some dry powder... just saying

mayhem_korner's picture



Mother of all wealth transfers.

CJHames's picture

I thought we were leaving Bitcoin out of this.