China Imports Could Be Higher Because of Underreporting

The Chinese are on a massive gold shopping spree.

China’s government doesn’t share exact figures, but the vast majority of gold heading into mainland China passes through Hong Kong, which does make its records public.

Gold imports to China have surged over 700% since 2010, according to the latest data from Hong Kong.

Exactly what China is doing with all that gold remains somewhat of a mystery. The increasingly wealthy Chinese are buying, but that doesn’t explain all the jump in demand.

The government says its gold reserves have grown only a little in recent years. Experts question whether China is telling the whole truth.
“China has a lot more gold than they declare,” says John LaForge, head of Wells Fargo’s commodities team.

via CNN

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, he established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza