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Chart Of The Day: China Imports Over 2,000 Tons Of Gold In Last Two Years

Tyler Durden's picture


China has just one thing to say to all those who engage in the now daily slamdowns of gold just around the time of the London fixing, after 8 am Eastern, which lately have gotten so vicious they have resulted in "stop logic" market halts not on one but at least two occasions, keeping the price of gold delightfully low for all those who instead of selling, are looking to buy: "thanks."

As the chart below shows, in the past two years since September 2011 (ironically the same month we wrote "Wikileaks Discloses The Reason(s) Behind China's Shadow Gold Buying Spree" namely that the PBOC was quietly seeking to make the renminbi the new gold-backed reserve currency) the mainland has imported an unprecedented 2,116 gross tons of gold from Hong Kong (in addition to the hundreds of tons produced domestically), for the first time crossing the 2k gross ton import barrier in a two year period!

Focusing on just the most recent import data for the month of August, seemingly unaware that all expert, hedge funds in the US have been "capitulating" on gold just because the momentum trade is no longer there, and because it somehow makes more sense to buy gold when the price is high rather than low, shows that China imported 131.4 gross tons of gold in the month, a 146% increase compared to a year prior, when the price of gold was substantially higher. Indeed, in a "shocking" turn of events, China actually buys more physical gold when the price is lower than higher. So much more, in fact, that August was the second highest gold importing month in history, lower only compared to March when it imported an unprecedented 223.5 tons.

But what about exports of gold, and China's net monthly gold needs. The chart below should answer that particular question. Net of gold export to Hong Kong, China imported 110.5 tons, the second highest net number in history, and second once again, only to March's 136.2 tons. Year to date, China has imported a gross 997 tons, and a net 741 tons. Since this accounts for just two-thirds of the year in the history books, on a gross and net basis, China will likely import over 1500 gross and over 1000 net tons for all of 2013: an absolutely stunning record in gold demand by just one nation.

Finally, putting all this feverish gold accumulation in perspective, here is the latest amount of official Chinese gold holdings as per the IMF. Incidentally, this is a number that has not been "updated" since April 2009.

The unofficial China gold holdings number since 2009 based on our internal calculations: about 2500 tons higher, which would make it the world's second largest official gold holder below the US and surpassing Germany, and rising at 100 tons per month.

Source: HK Census Dept


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Sun, 10/13/2013 - 11:19 | 4049901 LawsofPhysics
LawsofPhysics's picture


Sun, 10/13/2013 - 11:24 | 4049924 Xibalba
Xibalba's picture

they invented fiat, they know how it ends

Sun, 10/13/2013 - 11:34 | 4049951 TeamDepends
TeamDepends's picture

All your house are belong to us.

Sun, 10/13/2013 - 11:35 | 4049956 Buckaroo Banzai
Buckaroo Banzai's picture

And that's just the gold we know about.

Sun, 10/13/2013 - 11:55 | 4049984 The Thunder Child
The Thunder Child's picture

Hi Tylers,

Can you not use spaces in the file names of your charts, graphs and images please? It stops the ability to re-link them and spread the information people need to see. You have some of the best material, if adversly you would prefer people to re-upload to save your bandwidth could you let us know?



Sun, 10/13/2013 - 12:12 | 4050069 knukles
knukles's picture

Well, well, well...

Who's buyin' all the physical?
Who's sellin' all the paper to keep the price suppressed in order to make it look like everything's all OK?
The West
Were's the gold flowing from and to?
From West to East

Wonder what the buyers have as an agenda?

Well worth the read, folks.
A Watershed
The Formal Unveiling of the Currency Wars

Sun, 10/13/2013 - 12:43 | 4050144 LoneCapitalist
LoneCapitalist's picture

Three or four years ago, when Geitner was meeting with China several times, I remember thinking that he's making come kind of deal with China to keep them from dumping US bonds. Maybe the deal was that we would keep the price of gold suppressed so that they could stock up.

Sun, 10/13/2013 - 13:23 | 4050279 Conax
Conax's picture

After that meeting I read that Geithner's face was "white as a sheet".

'All your house are belong to us' indeed.

Sun, 10/13/2013 - 13:32 | 4050322 akak
akak's picture

The recent eternal nature of Chinese 'asian' gold blobbing-up is very much the mattering thing.

Sun, 10/13/2013 - 15:29 | 4050722 GetZeeGold
GetZeeGold's picture



Sorry Germany.....we still can't find your gold.


Maybe it's in the attic......did anyone think to check there?

Sun, 10/13/2013 - 22:08 | 4051711 Squid-puppets a...
Squid-puppets a-go-go's picture

germany should buy replacement gold from china at $1300 and wait until the price is $20 000 to sue USA

Sun, 10/13/2013 - 23:09 | 4051825 TwoShortPlanks
TwoShortPlanks's picture

And it is at this time I would like to chime-in and quote:

"The last item on my list is the ‘Permanent Squeeze’. In my opinion, this single attribute of the Gold space dwarfs all others potentials added together, in its capacity to bring uplift to Physical Gold as an asset. If this squeeze ever occurs, and the global economy survives in one piece, the average human will never see more than a single ounce of Physical Gold, at one time, in one piece [in one location]. This is a world where Gold is so rare, that if you divide the rate of annual Gold production by the number of people on the planet, then it will take 65-75 years for each person to be able to accumulate just 1 ounce of physical Gold. So if all the above ground reserves are spoken for and securely vaulted, then Gold’s true value is almost unlimited. Every Gold investor needs to get their head around that simple scenario, because if the global markets do run out of physical within the coming years (especially so if the global economy continues to unwind), then you will need to need to understand this possibility so that you don’t sell if/when things get tight or painful."

Andrew Maguire on KWN:


Sun, 10/13/2013 - 23:29 | 4051853 Stuart
Stuart's picture

No doubt, China is now #2 on that list of nation's gold holdings.  Stupid round eyes.


Sat, 11/02/2013 - 15:51 | 4115700 Indian_Goldsmith
Indian_Goldsmith's picture

The chinks may have all that, but they haven't got me! ;)

Nor do they have the Gods (godless communists!)

Tue, 10/15/2013 - 12:59 | 4056530 matrix2012
matrix2012's picture

"Maybe it's in the attic......did anyone think to check there?"


I guess you did mean "in the Arctic"... have the Germans searched for their gold bars in the Arctic sea, beneath the frozen ice?

Sat, 11/02/2013 - 16:02 | 4115727 Indian_Goldsmith
Indian_Goldsmith's picture

What "frozen" ice? Besides, the Americans can credibly blame the russians later on...

Sun, 10/13/2013 - 16:31 | 4050886 Cheese Potpourri
Cheese Potpourri's picture

I believe this is absolutely correct.  Giving the Chinese direct access to the Treasury market, bypassing Wall Street's cut of the action, was a big clue.  The system has managed to stay afloat on back room deals and they will continue.  This is how the world works.  Very little of what matters is out in the open, until recently, and it is still limited.  There is an arrangement with the Chinese, you can bet on it.  They are shrewd and our boys are just slick.  This is all headed in one direction, and that is East.

Sun, 10/13/2013 - 15:34 | 4050746 Cacete de Ouro
Cacete de Ouro's picture

It's easy to get this data from the HK trade websites.
ps: the Eurostat export data to HK is also quite interesting...

Sun, 10/13/2013 - 17:59 | 4051071 TheFourthStooge-ing
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The Thunder Child asked:

Can you not use spaces in the file names of your charts, graphs and images please? It stops the ability to re-link them and spread the information people need to see.

Substitute %20 for each space.

Just tryin' to help.

Mon, 10/14/2013 - 04:50 | 4052100 TheRedScourge
TheRedScourge's picture

^ What he said ^

Tue, 01/21/2014 - 07:45 | 4351045 shawnmike
shawnmike's picture

Hi Tylers, Can you not use spaces in the file names of your charts, graphs and images please? It stops the ability to re-link them and spread the information people milan leather jackets need to see. You have some of the best material, if adversly you would prefer people to re-upload to save your bandwidth could you let us know? Thanks!

Sun, 10/13/2013 - 11:46 | 4049989 max2205
max2205's picture

Who verified those US holding.....who's on second

Sun, 10/13/2013 - 11:52 | 4050002 Cognitive Dissonance
Cognitive Dissonance's picture

Combine China's "declared" reserves with their unknown stash and add in the fact that they actively encourage their population to purchase Gold and you have a rather large pile of precious.

<Then subtract USA/Fed Gold leases/sales from the "known" USA reserves and, soon enough, you will have panic in the reserve currency.>

Sun, 10/13/2013 - 12:26 | 4050112 knukles
knukles's picture

Thank you (and God) for sane comments

Sun, 10/13/2013 - 14:11 | 4050483 SWRichmond
Sun, 10/13/2013 - 11:19 | 4049906 Al Huxley
Al Huxley's picture

And the criminal fucking traitors to Western society at the BIS and the bullion banks keep giving it away to them.  Hope they're held accountable for their treason by the new regime, even if it's just a sop to placate the angry mobs.

In this year, before Christmas, king Henry sent from Normandy to England, and commanded that all the moneyers that were in England should be deprived of their members; that was the right hand of each, and their testicles beneath. That was because the man that had a pound could not buy for a penny at a market. And the bishop Roger of Salisbury sent over all England, and commanded them all that they should come to Winchester at Christmas. When they came thither they were taken one by one, and each deprived of the right hand and the testicles beneath. All this was done within the twelve nights; and that was all with great justice, because they had fordone all the land with their great quantity of false money which they all bought.


Cover your nuts and hide your right hands you fuckers.

Sun, 10/13/2013 - 11:41 | 4049978 Jannn
Jannn's picture

Hong kong is just one entrance point for the mainland. In total China net import is 1033 tons YTD:

Sun, 10/13/2013 - 11:50 | 4049999 Buckaroo Banzai
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"During the relatively long reign of King Henry I (1100–1135) the penny remained the chief denomination, although round halfpennies and quarter pennies were introduced [these are mentioned in contemporary accounts] which proved very unpopular and only about twelve specimens (of halfpence, and no round quarters)) are known to exist today. Fifteen major types of penny were produced, at around 54 mints which were intermittently active throughout the reign. The quality of the coins in the early part of the reign was poor, as the moneyers made a large profit by producing underweight coins or coins of debased fineness. In 1124 Henry called all 150 moneyers to Winchester and called them to account for their activities — 94 of them were convicted of issuing sub-standard coins and were mutilated, their right hands and one testicle being cut off, as a result of which the quality of coins improved for most of the remainder of his reign."–1154)

Sun, 10/13/2013 - 12:37 | 4050126 AL_SWEARENGEN

Did they teach us this little story in history or economics?  Not that I can recall.  Many would have understood fundamentals of money.  And earlier on, to their own benefit. 

Mon, 10/14/2013 - 01:27 | 4051978 SAT 800
SAT 800's picture

That'll teach 'em!!

Sun, 10/13/2013 - 11:22 | 4049909 old naughty
old naughty's picture

Why do they keep the price low so China can buy more at low?

It doesn't make any sense...

or does it?

Sun, 10/13/2013 - 11:38 | 4049961 tarsubil
tarsubil's picture

Could the west be planning on somehow squeezing China credit wise and having an opportunity to buy it back cheap? Militarily taking it back like in WWII is not an option.

Sun, 10/13/2013 - 11:50 | 4050006 Diogenes
Diogenes's picture

"Could the west be planning on somehow squeezing China credit wise and having an opportunity to buy it back cheap? Militarily taking it back like in WWII is not an option."

The US and the west generally are running a scam that involves passing off paper money as good money. Part of the scam is to make gold look bad so no one will want it, everyone will want the paper.

Anyone who sees through the scam can take advantage of it to buy gold cheap. But that won't do them much good as long as the scam is working and gold stays cheap. But someone who takes the long view, like a national government, can afford to plan for 10, 20, 50 years ahead.

This is not new. The savvy guys who frequent this board know Nixon slammed the gold window shut in the early 70s and stopped gold sales from the US treasury. A few know the reason, which was that the Bank of France was buying American gold for American dollars at such a rate, that Fort Knox would have been empty in another 2 years if he hadn't.

What almost nobody knows, is that the Bank of France was buying the gold for the North Vietnamese using US dollars they gleaned out of South Vietnam's black markets and drug sales to GIs. The gold then went from North Vietnam to Communist China to pay for the weapons Ho Chi Minh was using against US troops.

In China the Vietnam war was yesterday and they will plan ahead 100 years for a boiled egg.

Sun, 10/13/2013 - 12:05 | 4050053 rlouis
rlouis's picture

FR buying gold for NV to buy arms from China - very interesting - one of those 'stranger than WTF theories ...' that could very easily be true. 

Sun, 10/13/2013 - 16:02 | 4050814 roadhazard
roadhazard's picture

Except it the was the Russians supplying the NVA. North Viet Nam hated the Chinese. They even had a military clash in 1979.

Sun, 10/13/2013 - 16:47 | 4050911 Diogenes
Diogenes's picture

The Vietnamese fought against the French to free their country until the French left in 1954.

Then they fought against the Americans until the Americans left in 1974.

Then their Chinese allies started throwing their weight around until they threw them out

Then their Russian allies etc etc.

Are you beginning to see a trend here?

Mon, 10/14/2013 - 14:33 | 4053266 roadhazard
roadhazard's picture

Telling me what I already know does not make my post wrong. I stand by what I said.

Tue, 10/15/2013 - 13:58 | 4056821 matrix2012
matrix2012's picture

During the war against USA, Vietnam had both USSR and China as its supporter, so what Diogenes posted still make sense

Sun, 10/13/2013 - 11:57 | 4050035 chemystical
chemystical's picture



Japan took most of that, and much of it was hidden in the Phillipines as a hedge against the impending Allied/US invasion of Japan.  The Phillipines gold was reportedly the source of the Marcos' vast wealth. 

And wtf is Moochelle going to do with 2000 pairs of shoes?  It's not as if they're made of Spandex to cover her cankles like her stretch pants cover her fat arse.

* note to the NSA: give me a pass because you know that you laughed

Sun, 10/13/2013 - 11:39 | 4049975 YHC-FTSE
YHC-FTSE's picture

The fed does it so that nothing can usurp the FRN as the global currency. Gold is "barbaric" donchaknow? Money has two uses: Ubiquitous utility and saving of value. They have fucked up the latter, and the former is hanging by the thread of fantasy, oil, propaganda and mass ignorance. 

It's why if you mint gold coins in America to use as money, you get a one way ticket to the local prison. Ask Saddam, & Gaddafi how asking payments in gold for oil turned out for them. When you eventually come to the inescapable conclusion that criminals are in charge of the money supply, the convoluted push and pull of geopolitical bullshit becomes a little easier to decipher.

Sun, 10/13/2013 - 11:50 | 4049997 Nothing but the...
Nothing but the truth.'s picture

So in fact the Fed are playing right into Chinas hands by manipulating PM prices - the Renminbi will shortly take centre stage on the world's currency markets and all the Fed's futile defending will have been in vain. And Germany's gold holdings ( under the care of the US at Fort Knox ) may be nowhere near the amount they lodged there way back.

Sun, 10/13/2013 - 11:55 | 4050036 Diogenes
Diogenes's picture

"So in fact the Fed are playing right into Chinas hands by manipulating PM prices - the Renminbi will shortly take centre stage on the world's currency markets and all the Fed's futile defending will have been in vain. And Germany's gold holdings ( under the care of the US at Fort Knox ) may be nowhere near the amount they lodged there way back."

By the time the shit house blows sky high the political pimps and their criminal friends will be long gone, kicking back on their private beaches on the islands they bought with your money.

Sun, 10/13/2013 - 12:46 | 4050154 Gordon Freeman
Gordon Freeman's picture

"Renminbi will shortly take centre stage on the world's currency markets"

If only you could appreciate what an absurd statement that is...Have you ever fucking been to China??  Even the Chinese want dollars...

Any hypothetical realignment is (at best) decades away.

Sun, 10/13/2013 - 13:38 | 4050342 Nothing but the...
Nothing but the truth.'s picture

And have you seen China's GDP or noticed that they are desperate to bypass the dollar , having struck deals with Russia,Australia and the EU to pay in renminbi ? China decidely wants to move away ( like many others ) dealing in US $.  What's going to fucking China got to do with anything with the argument anyway ? You're fucking head is buried in the sand bro.

Sun, 10/13/2013 - 13:40 | 4050349 akak
akak's picture

Have you ever fucking been to Detroit, or Cleveland, or East Philly, or Newark, or Watts, or St. Louis, or .... ?

Sun, 10/13/2013 - 17:45 | 4051042 Greater Fool Theory
Greater Fool Theory's picture

Yes, I have f**king been to China.

Lived there for a while in fact.

And they don't want dollars.  

They want gold.

Mon, 10/14/2013 - 02:28 | 4052026 PP
PP's picture

no one in China want US dollar, 4 reasons:

1, Hate US government (not American people)

2, Lots of Currency exchange restriction, very inconvenient holding USD

3, Everyone knows USD is depreciating due to FED (called Mei Lian Chu in Chinese)

4, If you hold USD (especially gov staff) it seems that you are bribed by International company

Sun, 10/13/2013 - 11:52 | 4050004 ShorTed
ShorTed's picture

Perhaps it's China themselves helping their buying binge by orchestrating the daily slamdowns...just sayin'.

The object is to buy low, right?

Fri, 10/18/2013 - 12:25 | 4069150 Ek Onkar
Ek Onkar's picture

There is no US or China for tptb.. Now that they have devoured  the west and hollowed the carcass out, they are moving onto their next pot of honey. Though, before they start feasting, they are propping it up, making it healthy and supple, ready for the feast.

Sun, 10/13/2013 - 11:23 | 4049910 Seize Mars
Seize Mars's picture

2,000 tons...that we know about.

Sun, 10/13/2013 - 11:39 | 4049966 rubiconsolutions
rubiconsolutions's picture

That 2,000 tons doesn't include the amount they will seize from their citizens when things start to implode.

Sun, 10/13/2013 - 11:23 | 4049912 Clint Liquor
Clint Liquor's picture

It is a coordinated effort to keep Gold prices low until China has enough reserve to cover the new Backed currency. In exchange for the FED printing USD and selling paper Gold, China has agreed to not dump UST. This will give the US time for setting up the Socialist Utopia, which appears to be on track for the end of Obama's presidency.

Sun, 10/13/2013 - 11:42 | 4049980 Winston Churchill
Winston Churchill's picture

Pretty much my assessment.That deal was struck in 2008.

With opertion twist ,if China has any UST holding at all now,

their exposure is in short end bills.They can dump them at will.

We are just waiting on them to decide they have enough gold.

Who knows how much they are importing direct,not thru' HK,

and what deals they've done with miners.

They could also be manipulating paper gold to get the real thing.

I think they are closer to 8000 tons, than two right now.

Tick tock.....

Sun, 10/13/2013 - 11:22 | 4049914 luckylongshot
luckylongshot's picture

So China is buying every piece of gold it can, Germany can't get hold of the gold it owns, the price of gold remains flat and there is no market manipulation going on....and we are expected to believe all of this.

Sun, 10/13/2013 - 11:24 | 4049927 FieldingMellish
FieldingMellish's picture

You have no idea how frustrated Bart is. Even his hair is suffering.

Sun, 10/13/2013 - 12:24 | 4050105 Peachfuzz
Peachfuzz's picture

When I saw this article I pulled up the 2013 US Mint Stats (Eagles). The April smackdown caused a 10x surge in volume through the mint. we are within 35k ounces of last years sales with two and a half months of reporting left. This is half the volume of 2009. Perhaps Crisis Fatigue has set in for many buyers, or their dry powder has been used up in this long emergency, or perhaps weak hands dumped their gold onto the secondary market reducing the need for newly minted eagles, but if I was an egomaniacal squid banker, I would say it was because my propaganda machine was working like it's supposed to. All the same crisis, different year, half the gold sales.

I guess the light at the end of the tunnel in all that is the April smackdown beat every sales record in the best year I looked at ('09) excepting December @230k. Perhaps the silent majority is not as sheep like as certain bankers would presume.

Sun, 10/13/2013 - 21:10 | 4051574 Bay of Pigs
Bay of Pigs's picture

Meanwhile, ASE sales are going at record pace, well ahead of 2011.

Sun, 10/13/2013 - 11:22 | 4049915 ejmoosa
ejmoosa's picture

Since they are also importing US paper in the form of treasuries, they are 1 for 2.


I implore the Chinese, the Japanese, and the Russians to STOP purchasing these instruments and help us curtail this budget deficit.


Because if you do not, I will feel no moral obligation to pay you back.


For you are the enablers of BIG GOVERNMENT.

Sun, 10/13/2013 - 11:38 | 4049958 olto
olto's picture

Oh, so now you DEMAND HELP from the 'commies'---the Ruskies and the Chinese?

What do you think they would say to you, if they ever say a word?

We are the problem and not those who actually defend themselves against insanity

Hurray, hurray for the US of A!!!!!

I can't believe you wrote such a thing


Sun, 10/13/2013 - 11:52 | 4050007 ejmoosa
ejmoosa's picture

In the beginning, the government came to We, the People for financing.  They made their case and we bought the bonds and other instruments, for they were for good purposes.


Then the government figured out that instead of making their case to the American people, who understand the difference between a bridge in Savannah, Ga and a bridge in No Where, Alaaka, they could market their paper to foreigners who had little or no understanding of these projects, because the paper was safe.

And today, the purchase of this paper continues unabated, with the Federal Reserve mopping up all the excess and then some to keep the rates low.

I am a US citizen.

But I have no control over my government,  I have no influence.  They could give a damn what I think.

And I am not the one buying the very paper that continues to feed this beast.

How dare you to blame me for this issue.

I blame the enablers.

For without the enablers, we would have addressed this decade years ago.

If, what is being funded by this paper is a worthwhile cause, let Washington plead it's case TO the American people.  Whether we agree or not will be see by whether or not we buy the paper.

So go ahead.  Sell me on the fact that what the governement is spending is indeed a worthwhile investment.

I'll wait patiently.


Sun, 10/13/2013 - 13:03 | 4050196 Kinskian
Kinskian's picture

China is enabling our deficit spending but not out of charity or admiration for our people. They are keeping the game afloat.

I agree that we don't have much control over our government at this point, but we could stop volunteering to fight the wars that are doing the most to bankrupt our country. It's a volunteer Army and the dumb fucks keep signing up.

Sun, 10/13/2013 - 14:13 | 4050488 Arius
Arius's picture

if it was not for the chinese you and me would pay a much higher interest in our homes, in addition to much higher prices at the store.

asto the dumb fucks as you call them, people do not volunteer to go to war because they are stupid and you do not (obviously) because you are smart ... it is about MONEY ... how do you suggest they making a living???

Sun, 10/13/2013 - 17:32 | 4050809 ejmoosa
ejmoosa's picture

So?  We pay higher prices in the short run.

Would this not be worth it to stop our loss of freedoms and reverse this trend?

Or are you good with becoming a debt slave?


Sun, 10/13/2013 - 21:03 | 4051474 olto
olto's picture


sorry, dude,

"how dare' I?

your history is weak and revisionist and you are playing the victim.

Good for you----we are the 'enablers'----- those of us not in the streets

I cannot escape this fact either---me too

but a sheep is still a sheep

baaa, baa, ba!

Sun, 10/13/2013 - 12:03 | 4050045 Diogenes
Diogenes's picture

But they aren't importing US paper in the form of treasuries. They stopped buying more treasuries 2 years ago and since then their reserves of treasuries have been shrinking.

They have also been buying mines, farm land and other hard assets around the world and no doubt promising US dollars in return.

When they make the last payment in 10 or 20 years, if the dollar is only worth 2 cents that is hardly their fault.

In the meantime the Fed has taken up the slack by buying more and more treasuries and now owns more of them than anyone in the world.

But don't worry if anything happens the government will bail them out just like they are bailing out the government.

Sun, 10/13/2013 - 12:38 | 4050129 joego1
joego1's picture

"Promising US dollars in return". The Chinese are good at the end game.

Wed, 10/16/2013 - 01:34 | 4059438 matrix2012
matrix2012's picture

@ Diogenes

"But don't worry if anything happens the government will bail them out just like they are bailing out the government."


Your above line is really funny to read... it actually caused me ALOL !!!!

IF BOTH THE US GOVT AND THE FED can bail out each other then there should be NO problem!!

They're helping out each other :-) BEST TEAM WORK!!!


Sun, 10/13/2013 - 11:22 | 4049917 I am Jobe
I am Jobe's picture

Meanhile Amerika imports junk for the Sheeples to consume and decorate their porches and homes with useless things. Nice plan and well followed sheeples. BUY MORE ICRAP and IYUNES u dip shits

Sun, 10/13/2013 - 11:23 | 4049922 FieldingMellish
FieldingMellish's picture

At only 1.3% of reserves versus some 70% for most of the other big players, it seems there is plenty of room for further accumulation.

Sun, 10/13/2013 - 11:28 | 4049928 JustObserving
JustObserving's picture

China is the largest producer of gold in the world and that gold stays in the country.  That amounts to more than 800 metric tons in the last two years:

Output may rise to as much as 440 metric tons, said Wang Jiahua, executive vice chairman at the China Mining Association. The country, which overtook South Africa as the largest producer in 2007, had output of 403 tons in 2012, according to data from the Beijing-based group, an affiliate of the Ministry of Land and Resources.

Sun, 10/13/2013 - 11:44 | 4049986 Quinvarius
Quinvarius's picture

I wonder if China includes foreign mines they own, thus double counting on global totals. 

I know how they think.  A 40% drop in price means that they will increse their total holdings by 40% to get back to flat as a priority.  Afterwards they will continue the savings plan accumulation.  They are going to need a lot of extra supply until gold returns to 1800 or so.

Sun, 10/13/2013 - 11:26 | 4049929 Fix-ItSilly
Fix-ItSilly's picture

What makes this Chinese stat any more accurate, or believable, than the other Chinese stats ZeroHedge continually laughs at as being conjured up

Sun, 10/13/2013 - 11:27 | 4049931 29.5 hours
29.5 hours's picture


2000 tons. This is a lie. How is it possible to import 2000 tons in 2 years when we all know that it will take Germany 7 years to import just 300 tons from U.S. vaults?!




Sun, 10/13/2013 - 11:33 | 4049950 scatterbrains
scatterbrains's picture

fir realz!  and it depends on your definition of "has" is.  How much gold does Germany really have as opposed to what they pretend to have.. which is realy out of their reach? lol



Sun, 10/13/2013 - 12:08 | 4050059 Peter Pan
Peter Pan's picture

You got your figures around the wrong way. It will in fact take Germany 300 years to get 7 tonnes back.

Sun, 10/13/2013 - 12:53 | 4050169 GrinandBearit
GrinandBearit's picture

The Chinese now own the Germans gold.

Sun, 10/13/2013 - 11:31 | 4049947 apberusdisvet
apberusdisvet's picture

Hardly a socialist utopia; more like a gulag, ruled by whatever fascist or marxist is pulling the strings.

Sun, 10/13/2013 - 11:55 | 4050034 Winston Churchill
Winston Churchill's picture


Pol Pot improved on the Gulag model.It has been incorporated into

their plan. 2bn rounds for the DHS remember.

Sun, 10/13/2013 - 11:34 | 4049949 tarsubil
tarsubil's picture

It would be nice to know the actual location of gold.

Sun, 10/13/2013 - 11:38 | 4049960 TheBoyPlunger
TheBoyPlunger's picture

The more they import the lower the price goes. Seems logical to me.

Sun, 10/13/2013 - 11:38 | 4049963 Bearwagon
Bearwagon's picture

Shirley they will build one giant Maneki-neko from that gold, and attract all the luck in the world. We're doomed, pals ...

Sun, 10/13/2013 - 13:31 | 4050312 WmMcK
WmMcK's picture

Please stop calling me Shirley.

Sun, 10/13/2013 - 11:39 | 4049965 Jannn
Jannn's picture

If you would like to know How much China is net importing in total, not just through Kong Kong, read (its +1000 tons YTD): 



Sun, 10/13/2013 - 11:38 | 4049971 orangegeek
orangegeek's picture

Good for China - keep buying while gold prices fall.


1270 should break this week.

Sun, 10/13/2013 - 11:44 | 4049979 Sufiy
Sufiy's picture

Now we know Who is Selling and Who is Buying again:

Andrew Maguire: Gold Smashdown, FED Defends The Dollar And How Goldman Sachs Operates.

Andrew Maquire presents to us the chronicles of ongoing war behind the curtain with FED defending the US Dollar at the crucial level 0.80 and how the FED's #1 Gold Prime Dealer Goldman Sachs operates in the Gold market. Now we have more information on why Goldman Sachs has issued the Sell Call on Gold last Wednesday.     All these revelations will never lead to the higher Gold prices without Buyers and one can argue that this manipulation can go forever. According to the Andrew Maquire the key crucial difference now is that Central Banks are buying and, particularly, China is taking all available Gold for physical delivery now.

Sun, 10/13/2013 - 13:30 | 4050276 Kirk2NCC1701
Kirk2NCC1701's picture

McGuire was beaten by ZH bloggers on this.  He merely did some due diligence and repackaged ZH info.

For example:  Thu, 10/10/2013 - 15:41 | 4042524

"This explains the global game of Risk that the GS squid is playing.  GS is HEDGING their allegiance:

Some allegiance to the US, some to China.  Make money off both, and screw the poor, working trolls.

Allow the US politicians to keep spending (on behalf of their constituency) to get re-elected, keep funding the MISC (Military-Industrial-Surveillance Complex), keep up the MV (Money Supply x Velocity of Money) to maintain the fiat-Dollar's Reserve status, money printing and wealth transfer.

Hammer any threats to the Dollar, including Gold.  Allow the Chinese to buy bullion on the cheap, thus ingratiating oneself with them and getting the Insider track with the GS center in Shanghai.  This center will profit from China's continued growth.  China is hedging its bets by holding both US Debt (USTs and FRNs on FX), as well as gold (to back own currency).  This way, they can't lose, no matter what happens."

This is not the first time that writers on other blog sites have "borrowed" from ZH w/o due credit. nor will it be the last time.  It's a quick & easy way to generate blogs, and to improve the site stats. 

"It's a Blog copy Blog world", it seems.

Sun, 10/13/2013 - 11:43 | 4049985 Blopper
Blopper's picture

The world has over 1 million tons of gold, and NOT the official record of 160k tons to 180k tons.

Who agrees with me gives me a thumbs up.

Those disagree gives me a thumbs down.

Sun, 10/13/2013 - 11:53 | 4050010 Buckaroo Banzai
Buckaroo Banzai's picture

I agree there is a lot of "black" gold out there, but 1 million tons seems like too big a number.

Sun, 10/13/2013 - 11:52 | 4050020 Peter Pan
Peter Pan's picture

You are possibly right if you include the gold in seawater which unfortunately cannot be viably extracted.

In the meantime would you mind clculating how many tonnes of paper and worthless metal coins are in existence? You might find that figure more startling.

Sun, 10/13/2013 - 11:57 | 4050037 Quinvarius
Quinvarius's picture

Of course that is true.  Every momo trader knows gold is going to zero and there are hundreds of billions of tons of it available when the price is moving down.  Just like they know it is going to 100k an ounce and there is no gold when the price is moving up.  It is called crowd psychology.

Sun, 10/13/2013 - 11:45 | 4049990 Peter Pan
Peter Pan's picture

China still has a long way to go before it satisfies its appetite.

Simple math shows that even tiny nations like Greece has mre gold than China on a per head of population basis.

I suspect that China has been buying through other sources as well that may not be showing in the statistics. Sources like the Canadian and Australian mint come to mind.

The funny thing is that under stupid western reasoning the import of gold acts to decrease the Chinese trade surplus even though they are exchanging worthless (in the long run) US dollars for real money.

China may have some gargantuan probems of her own but at least she knows real money when she sees it.

Sun, 10/13/2013 - 11:48 | 4049992 socalbeach
socalbeach's picture

In case you missed it.

Plot of the approx value of above ground gold (yellow) vs the monetary base (MB) (red).

The gold price is increased by 1.7%/year to account for mining output.

The MB equals total currency and coins plus bank reserves on deposit with the Fed.

Why compare the dollar value of gold to the dollar value of the MB? Because in a system where each dollar is backed by a fixed amt of gold, gold serves the same function as bank reserves plus currency in the current fiat system. The Fed creates reserves just like mining companies create gold, and the total amount of money (M2, green in graph below) in both systems is multiplied by commercial bank loans. Commercial banks cannot increase the monetary base with loans, only the Fed can.

The difference between the 2 systems of course is that mining output is limited and requires work, whereas the Federal Reserve's monetary base increase is unlimited and effortless. (as of Friday, 10-11-2013)

Gold is currently just slightly higher relative to the MB than it was in 2001 before the gold price took off. There are no guarantees of course but I consider gold to be in a low-risk buying zone now.

Sun, 10/13/2013 - 12:02 | 4050047 Pareto
Pareto's picture

+1  Thanks for this perspective.

Sun, 10/13/2013 - 11:52 | 4050014 harleyjohn45
harleyjohn45's picture

The west operates on a weekly plan, the chinese operate on a decade plan.  If gold drops all the weak hands sell immediately. 

Sun, 10/13/2013 - 11:56 | 4050031 RaceToTheBottom
RaceToTheBottom's picture

"weakly plan"

Sun, 10/13/2013 - 11:54 | 4050015 Seasmoke
Seasmoke's picture


Sun, 10/13/2013 - 11:54 | 4050016 I am Jobe
I am Jobe's picture

Bright Future awaiting for very many. 


Middle-class children 'will be worse off than their parents for the first time in more than a century'

Read more: 
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Sun, 10/13/2013 - 12:06 | 4050054 Diogenes
Diogenes's picture

Nothing new. Do you realize the children of the 70s and 80s were the first generation in 500 years to travel slower than their parents?

Sun, 10/13/2013 - 11:56 | 4050025 RaceToTheBottom
RaceToTheBottom's picture

China is recieving a gift of reduced price gold from the US and Europe to payback them for not dumping all their treasuries.

The US is getting low on cards to play

Sun, 10/13/2013 - 12:04 | 4050050 Peter Pan
Peter Pan's picture

Prior to the confiscation of his gold and silver Bernard von Nothaus had more gold and sikver than the US givernment.

They still don't have the nerve to sentence him because the coins he produced ten years ago are still worth far more than the currency he supposedly counterfeited.

That s how twisted the USA has unfortunately become.

Sun, 10/13/2013 - 12:12 | 4050066 Burticus
Burticus's picture

Since most or all of the sovereign gold of the United State_ and Germany have been "leased" to bullion banks and sold, possibly replaced by gold-plated tungsten under the Rubin gang, China and Indian women now have the most gold by far.

Don't forget the "golden rule":  He who has the gold, rules.

Sun, 10/13/2013 - 12:15 | 4050074 Handful of Dust
Handful of Dust's picture

Just about every Indian, Paki and Chinese person I know holds lots of gold either as jewelry or in coinage.

What can these descendants of ancient civilizations be thinking?

Sun, 10/13/2013 - 12:14 | 4050075 Debugas
Debugas's picture

and despite of China buying record amounts of gold the price .... is going down

Sun, 10/13/2013 - 12:26 | 4050110 joego1
joego1's picture

I'm sure that we will find that it's because of some dirty deal done with Jamie and friends to help out, for a fee of course.

Sun, 10/13/2013 - 12:20 | 4050082 Petrus Romanus
Petrus Romanus's picture

A bit off topic, but here is a nice little news report that ties fiat to these purchases.

Dollar supremacy is rapidly ending. Death throes really.

Mon, 10/14/2013 - 03:46 | 4052063 PhilofOz
PhilofOz's picture

Wow!! This should be big headlines everywhere. I bet the US MSM don't give it a mention.

Sun, 10/13/2013 - 12:24 | 4050106 IridiumRebel
IridiumRebel's picture

I'm Saying thanks too. One morning we will all wake up and the dollar will be devalued by 25-50%....for the children.

Sun, 10/13/2013 - 12:27 | 4050107 iLiquid
iLiquid's picture

I'll probably be hated for saying this, but here's my (gold-backed) 0.02 CNY.

* The last thing PBOC wants is a gold-backed CNY.  This will cause a massive hike in the currency, which hurts the export economy that feeds millions in the country.

* A gold-backed CNY would soon collapse when the owners of China's massively inflated real properties abandon the houses and start a run on the non-printable gold via the gold-backed money.

* Contrary to general perception, the PRC gov doesn't encourage the citizens to buy gold, nor does it discourage them from doing so.  Nevertheless, China (like India) has a strong domestic demand for gold because of the traditional preference for gold jewellery.  Almost all newly wed couples receive some gold as presents.

* In addition, China has a booming industry of electronics manufacturing.  And gold is a soure material for making electronic devices due to its high conductance.

Tl;dr: China in no way wants a gold-backed CNY.  In addition it is known that China has a stronger-than-average demand for gold as a commodity, which could explain quite a chunk of the net import.  The gov may have been stashing gold but it clearly has no intention to use that to back the CNY.

Sun, 10/13/2013 - 12:47 | 4050152 Quinvarius
Quinvarius's picture

The free market backs the currency with gold on its own over time.  It is senseless to fight it.  It always happens.  China knows more gold equals more ability to print and take on debt without causing the massive economic volatility currently seen in the west.  Would anyone care about Greece's debt if they had 1 trillion in gold?  No.  They would be lining up to make them more loans.  No one has to explicitly say or do anything.  Gold prices will match the money and debt of the nations in the end.  It is the only true national financial asset and collateral.  But, for now, it appears the Western gold shorting mania continues until something breaks.

Sun, 10/13/2013 - 12:28 | 4050116 b_thunder
b_thunder's picture

THE trade of the next decade, 2013-2023:    SELL TREASURIES,  BUY GOLD (and silver, and platinum, and whatever else can be moved out of the "developed countries" and sold to the wealthy Asians)


Sun, 10/13/2013 - 12:32 | 4050120 LawyerScum
LawyerScum's picture

I hate to burst your gold bug dreams, but the Bernank says gold is not money (he has a PhD, nice office with a view, neatly trimmed beard etc., so we have to listen to him).  One can only imagine the god like thoughts that pass through his genius brain.



Sun, 10/13/2013 - 12:36 | 4050125 TaperProof
TaperProof's picture

Maybe they'll decide they dont want it any more and sell it all at once at whatever the market will bear like some futures traders do. Which is normal according to Bart Chilton

Sun, 10/13/2013 - 12:37 | 4050131 WallowaMountainMan
WallowaMountainMan's picture


noticed that zh has bumped up the cutoff dates for listing member comments to about 30 days. and archived articles at 30 days. zh has steadily been shorting the 'look back into history' aspect of zh.

i take that personally 'cause one of the things i liked to do was visit my previous posts, check my predictions and then report what actually occurred. a personal style kinda thing.

sure hardly anyone does it, but i found it fun.

but this kinda thing has happened before as websites became mainstream-er.

next thing you know, censorship and banning of the classic 'fuck bernanke' crowd.




Sun, 10/13/2013 - 12:40 | 4050133 joego1
joego1's picture

I think the chinese are playing the western financial game but realize very clearly that in the future the global financial system may be a very different beast. They are currently planning what that future will look like.

Sun, 10/13/2013 - 12:55 | 4050165 Quaderratic Probing
Quaderratic Probing's picture

China prints 6 to one the same amount as the US to keep their currency tied to the USD.
They need gold if they want to be with the big boys in SDR's
They need more than the future promise of cheap labor to back their currency.
They have no BOND market or Rule of Law to protect Bond buyers
Lest we forget they are Communists...with some gold

Sun, 10/13/2013 - 13:08 | 4050215 Winston Churchill
Winston Churchill's picture

Rule of Law.Fell of my chair laughing.

How long have you been asleep?

Aint been no pretense of  law since 2001.

Sun, 10/13/2013 - 12:54 | 4050175 RealityCheque
RealityCheque's picture

So China BTFDs?

Does the PBOC have zerohedge bookmarked for tactics?!

Sun, 10/13/2013 - 14:00 | 4050438 sky wing 2010
sky wing 2010's picture

How do you know !


Sun, 10/13/2013 - 13:38 | 4050317 deflator
deflator's picture

Why would central banks want to sell paper gold and turn right around to buy physical? Makes no sense to me, surely these central bankers know paper is good as gold right?  

Sun, 10/13/2013 - 13:55 | 4050417 q99x2
q99x2's picture

It is a blessing for people that don't have much money to be able to buy some.

Sun, 10/13/2013 - 14:14 | 4050484 Hongcha
Hongcha's picture

Illiquid, agreed that logic argues against the Chinese wishing to elevate the Yuan to reserve status.

Walk into any PBOC branch in Beijing, for instance, and you will see many varieties of newly-minted cold and silver coins in tasteful display for the newly-rich and thriving upper-middle and middle class; you remember, like the U.S.A. had until our very future was sold out from under us and continues to be sold by the current administration.

Meanwhile in towns on the margin between lower-middle-class and the remnants of Beaver Cleaverville, like my burg Concord, CA, there are a dozen CASH4GOLD shops.

Using Occam's razer, the simple answer may well be; the Chinese know a bargain and have the fiat to buy stores of value.  Au is getting pounded down to at-or-near extraction cost again - a natural long-term bottom.

While in the U.S., the elderly are forced to sell their gold to eat, or to keep their gocarts running.

Could the decline be any more stark and obvious.

Sun, 10/13/2013 - 16:21 | 4050866 robertocarlos
robertocarlos's picture

How much gold is that per Chinaman?

Sun, 10/13/2013 - 17:19 | 4050988 DosZap
DosZap's picture
Chart Of The Day: China Imports Over 2,000 Tons Of Gold In Last Two Years




And is actively trying to accumulate another 5000 Tons.(on top of the 6-12 they likely already have, If not MORE.)

Sun, 10/13/2013 - 17:19 | 4050989 AgLand
AgLand's picture

They can't take what they can't find -- or does not 'reside' in the US.

Sun, 10/13/2013 - 17:49 | 4051050 Composter
Composter's picture

So ... how the fvck much do they have now ?

2 years ago they must have had some Gold.


I would say ... "I envy my Chinese friend who works at Intel.

She can transfer her savings into Yuan."


BUT how would a Gold backed Yuan 'play' ?

Probably, pretty good.

Sun, 10/13/2013 - 18:46 | 4051196 Kina
Kina's picture

China will never seize gold from its citizens, that would like trying to steal their nuts. And China goes to great efforst to not create civil commotion.


The idea of encouraging citizens to own gold is let them maintian wealth when and if SHTF and not riot against the govt.

Sun, 10/13/2013 - 19:19 | 4051295 SAT 800
SAT 800's picture

On a somewhat more cynical note; it's also a useful safety valve for domestic inflationary pressures; they can print and distribute Yuan; and what leaks out into the private sector savings can be mopped up by Gold; and disappear. It's anti-inflationary from the government point of view.

Sun, 10/13/2013 - 18:59 | 4051227 Kina
Kina's picture

Long term the price of energy and scarcity of resources (as now) will be the major issue facing countries. Having a strong currency makes those things cheaper.


It affects exports, but being able to provide energy needs to 1.3 billion people is first order of business. With a weak currency enegergy cost are very high and get added back into export costs in any case, whilst the populace a screwed down by high domestic energy costs.


Big deals going forward for an overpopulated and increasingly fractious world:

Food access and costs

energy costs

essential resource costs


The guys with the more stable (gold backed) currency are going to do the better business. Holding a gold back currency makes you feel more compfortable than an ever depreciating fiat note.


China knows that in the future it needs a strong/stable/reliable currency to feed and energise its people.

Sun, 10/13/2013 - 19:18 | 4051287 SAT 800
SAT 800's picture

That's what I've always assumed. I also think it's very fishy to have Russia down for 1,000 Tonnes. and change. I doubt that very much. I'd like to see the accounting from Russia's domestic gold mining industry for the last 13 or 14 years; but I doubt if I'm going to. they used to sell gold regularly in Switzerland in order to buy stuff; when the Ruble was rubble, so to speak; but they don't anymore. so where did the gold go? I'm pretty sure it didn't evaporate.

Sun, 10/13/2013 - 19:33 | 4051329 BarnacleBill
BarnacleBill's picture

The Chinese aren't necessarily smarter than the rest of us; it's just that they're taking the long view! I'm not a professional trader or anything like that, but it makes sense for me as an amateur to also take the long view. I live on a Caribbean island (one of the "offshore" tax havens), and write a blog that is mostly aimed at my local readership. A few months ago I shared with them my opinions on gold, and in what form it is best acquired and held. Below I've put the link to the relevant post, in case some Zero Hedge readers are interested.

Mon, 10/14/2013 - 06:59 | 4052143 PhilofOz
PhilofOz's picture

Enjoyed a good read there on many subjects. From another Aussie, thanks.

Mon, 10/14/2013 - 00:51 | 4051943 James
James's picture

Daym Tyler, after reading post and comments concerning China Gold I wondered what their Silver purchases were and went and looked. 7th link down I chose for no particular reason and it brought me back to....................ZeroHedge.

Do NOT follow this link or you will be banned from the site!