In fact, in recent years, China's gold imports have been significantly increasing. According to Bloomberg data, China was the world's largest gold importer in 2013, with Mainland China importing 1158 tons of gold from Hong Kong, a 107% increase compared to 2012; from 2011 to 2013, Hong Kong's net gold exports to Mainland China reached as high as 1930 tons.
The World Gold Council previously released data showing that global consumer demand, led by China and India, reached a new high in 2013. China's gold demand in 2013 hit a record high of 1065.8 tons, surpassing India to become the world's largest gold consumer market.
Gold prices are emerging from a low point. Although the favorable inflation outlook in the United States and the Federal Reserve's ongoing reduction of monetary easing continue to suppress gold prices, China's gold demand is one of the key forces supporting gold prices.
According to a report from Crédit Agricole, it is precisely because of China's demand that the era of easily profiting from shorting gold has ended. Gold prices will not fall back to $1000 per ounce as many speculate, as it depends on the situation in China.
