Despite all of the reports from the World Gold Council that the yearly gold demand in China was falling, the Chairman for the Shanghai Gold Exchange let it slip in a recent speech that last year, the consumer demand for gold in the country was actually almost DOUBLE what the WGC has been reporting.
Xu Luode, one of the keynote speakers at the LBMA forum in Singapore, made the startling revelations during a speech on June 25th but the news did not get picked up by western media outlets because it has only just now been translated into English for the LBMA magazine, the Alchemist.
In the speech Xu stated “Last year, China imported 1,540 tonnes of gold. Such imports, together with the 430 tonnes of gold we produced ourselves, means that we have, in effect, supplied approximately 2,000 tonnes of gold last year.”
The WGC reported that consumer demand for 2013 was only 1,066 tonnes.
As we have noted before, China stopped reporting their gold imports and reserve numbers in 2009 and since then has made several changes to the ways in which the metal is brought into the country in order to obscure their totals.
In the past, all gold coming into the country had to pass through Hong Kong, which allowed for enough transparency to the other nations of the world that they could know exactly how much China was bringing in. But over the past 2 years China has opened up other cities such as Beijing and Shanghai for imports, which allowed the country to effectively hide their overall numbers.
Most western media outlets continue to fixate on the import numbers coming through Hong Kong, which has been dropping precipitously– but only because China is now bringing in more gold via Beijing and Shanghai.
A market insider told Reuters that the imports for September would likely be 30% higher than August and could be 50% higher for October.