China’s 2013 gold consumption topped 1,000 tonnes for the first time, reports Reuters, according to an announcement on the China Gold Association’s Web site, that consumption jumped 41 percent last year to 1,176 tonnes. That’s similar to the figures reported in late-January for China’s 2013 imports through Hong Kong. The Reuters article also points out that not only has the surge in demand “helped China become the No. 1 gold consumer,” but that the numbers “do not include demand from the central bank, whose gold reserves stand at 33.89 million ounces (1,054 tonnes), unchanged since April 2009, according to the latest figures on the central bank’s website.”
And in the above video, Morgan Gold’s chief strategist, Ed Moy, told Bloomberg‘s “Bottom Line” on Monday that “When you look at gold, there’s two separate pieces. One is how the West looks at gold, and they’ve been investing in a lot of electronic derivatives and proxies for gold. Whereas the East has been buying a lot of physical gold. That demand has actually gone up. China in 2013 looks like they bought 1,000 tonnes, making them the number one buyer of gold in the world.” Asked if he’s concerned about a possible gold shortage, Moy says, “Absolutely.” He reasons that since Eastern investors are “hoarders” who “aren’t in it for the quick pop, like Western investors are…. when there’s a need here in the West, there’s gonna be a shortage because all that gold’s not coming back from East to West.”
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