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.