The People's Bank of China is amassing tons of
gold in an apparent effort to become the gold trading center of the
world, according to Mike Fuljenz, a gold dealer and market analyst.
The Mike Fuljenz Metals Market Report for
the first week of October, Fuljenz writes that "transfers from
Switzerland (a traditional gold trading center in Europe) to China are
part of the global gold migration from the West to the East. China is
also absorbing much of the gold sold by U.S. ETF [exchange-traded fund] traders. Sales in the new
Shanghai Gold Exchange (SGE) exceed trading volumes at any other
global gold market. Over 65 metric tons of gold were withdrawn in the
week ending September 25, making a year-to-date total of 1,958.7 tons,
an annual rate of nearly 2700 tons — which represents about 90 percent
of the newly-mined gold totals this year."
According to EconomicInfoHub.com, China has spent the past six
years importing thousands of metric tons of gold and buying all of its
own domestic production.
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EconomicInfoHub.com reports that according to Koos Jansen at BullionStar.com, "the China
Gold Association (CGA) Yearbook listed net imports in 2013 at 1,524
tonnes, with an additional 428 tonnes from domestic production, a sum
total of 1,952 tonnes. In 2014, China imported at least 1,250 tonnes
and domestically mined 452 tonnes, for a sum total of 1,702 tonnes.
Total imports amounted to more than 410 tonnes in the first two months
of 2015 alone, which is a big jump from 2014 demand."