China has a ferocious appetite for Gold now. In 2012, Hong Kong shipped 94% more gold to the mainland than they did in 2011.
They are buying all the gold they can get and China's gold councils have projected by 2015, China's demand will outstrip their supply by 550 metric tons.
There are approximately 2471 tons of gold mined annually around the world. China mines approximately 403 tons of that. That means within 2 years time China will be buying almost half the gold mined.
It is estimated they bought 832 tons of gold in 2012. Here is an article from China on that subject alone.
China' s gold consumption amounted to832.18 tonnes in2012, an increase of9.35 percent from a year earlier, data from China Gold Association showed Saturday.
Consumption of gold jewelry rose10.09 percent year on year to502.75 tonnes, while those of gold bars and gold coins gained12.22 percent and21.63 percent, respectively, to239.98 tonnes and25.3 tonnes.
But consumption for industrial and other uses saw a drop last year, the association said. Demand for gold has grown steadily over the years as more Chinese see it as a hedge to diversify investment risks and battle against inflation. China is currently the world' s second-largest gold consumer after India.
China produced403.05 tonnes of gold in2012, making it the world' s largest producer for the sixth straight year, according to previous data from the association.
Portions from article about demand: (sorry for some reason the below will not format correctly, it splits the words when published)
The country' s demand for the precious metal is expected to outstrip supply by at least550 metric tons by2015, statistics released by several gold councils showed.
China has been the world' s biggest producer of gold for six years since2007, with an annul output of403 tons in2012, a year-on-year growth of11.7 percent.
A quarter-to-quarter comparison shows China' s demand for gold investment saw a24 percent increase in the fourth quarter of2012, said Marcus Grubb, the council' s man aging dire cto r for investment.
To meet demands for physical gold, Hong Kong shipped114 tons of gold to the mainland in December, a record high for monthly exports. Hong Kong' s net gold flow to the mainland jumped47 percent in2012, totaling of557 tons.
Data from the Hong Kong Census and Statistics Department show Hong Kong' s total gold shipments to the mainland in2012 jumped94 percent from2011 to more than832 tons, while imports were six times higher at275 tons.
You really have to wonder with China's purchases of gold and the demand so high, how is it that gold keeps getting hit and the price falls drastically as it did this last Friday.
I spoke to David Morgan from Silver-Investor.com on Friday when Gold and Silver were getting smashed about what is going on. He said that he believes they are in such a bad position of shorts that they had to smash it to get people to give up their long positions and to sell their gold and silver. We spoke about the psychology of it and getting into people's mind in giving up their gold and silver. Last year I interviewed David about that subject and the psychology of smashing metals.
I have no doubt that China loves the manipulation of Gold by the Western bankers so they can purchase at lower prices. It is said they participate in the manipulation, which would make sense, so they can keep purchasing all they can get their hands on.
The question is.... are we now getting to the point that full demand has outstripped the physical and they are playing the paper to get people to give up their physical? Is there such a shortage with countries now wanting to repatriate their gold, they are desperately smashing it for the last few times until it breaks away?
In regards to silver, there was an article two days ago on Silver Doctor about a German car manufacturer hoarding silver due to the shortages of it and the need for them to have it in manufacturing their vehicles.
New signs of an extremely tight wholesale physical silver market have now emerged, as a first-hand account has revealed that one of the largest and most famous German automakers is hoarding massive amounts of physical silver inside one of the most secure vaults in Zurich, Switzerland.Everyone needs to ask themselves.... "Am I going to take advantage of these prices right now or am I going to give up on metals?"
I really hope that everyone makes the right decision and understands what is happening with the prices are all based on paper trades and not real physical gold and silver.
With the demand coming out of China for physical gold, (which does not include India's or Russia's appetites for Gold right now) prices will have to break out in a violent fashion one day (in the near future?). At some point the truth will have to be revealed.
Think about how in less than 2 years (by 2015) the demand in China is going to outstrip supply. This does not include any other country's demand or countries demanding their gold back.