China's gold imports from Hong Kong, a proxy for overseas buying, set a record in November for the fifth consecutive month as demand from the world's largest gold consumer continued to defy expectations. China's gold imports have soared in recent months, as Chinese investors pour their savings into popular gold bars and consumers start to buy gold gifts for Chinese New Year.
China's gold imports via Hong Kong in November were leapt 20 per cent from the previous month to 103 tons. Wednesday's data, released by Hong Kong, brought China's total gold imports from the territory to 389 tons during the first 11 months of 2011. The Hong Kong data are considered a proxy for China's overall gold imports, which Beijing does not disclose.
"The weaker prices have been seen as a clear buy signal by many, with jewelry consumption and investment demand returning strong gains in the final quarter," Cameron Alexander, senior metals analyst at consultancy GFMS, said. "The lower prices coincide with the important stocking period in the lead-up to the Chinese New Year celebrations, with reports from the trade of robust sales at current price levels."
The run-up to Chinese New Year, which this year falls in late January, is the busiest time for gold purchasing in China, and November's imports fall at the beginning of the holiday gold rush. Dragon-embossed gold bars and dragon figurines are particularly popular in Chinese gold shops this year as consumers prepare to welcome the year of the dragon under the Chinese zodiac. . .View Full Article