Contact us
CALL US NOW 1-888-GOLD-160

Gold Imports into China and India Surge

  by    0   1

Gold is flowing into India and China, as demand for the yellow metal in the world’s two largest markets continues to boom.

Gold imports into India surged once again in May, building on strong March and April numbers. Increasing imports signal a continued rebound in demand for the precious metal in the world’s second-largest market after a tepid 2016.

According to a Reuters report, gold imports quadrupled in May year-on-year, coming in at 103 tons. Analysts say they expect the rise in imports will likely help support global prices in the coming months.

Jewelers accounted for the bulk of Indian gold imports last month, as they worked to replenish depleted inventories after a booming Akshay Tritiya festival in April. Gold sales increased more than 30% during the important Hindu holiday. All-told, Indians bought more than 23 tons of gold in a single day.

It was the third straight month gold imports into India increased significantly. Demand for the yellow metal surged 582% year-on-year in March to 120.8 tons. That marked the highest monthly import level since the middle of 2015. Gold continued to flow into the Asian country in April, with imports doubling year-on-year.

Uncertainty over the tax rate for gold under the uniform goods and services tax has also spurred buying this spring. Over the weekend, the government announced the tax will be set at 3%, lower than the 5% level most observers expected. Analysts say the lower than expected tax will likely continue to support strong demand moving forward.

Chinese investors also have a renewed appetite for gold. Gold consumption shot up in China during the first quarter of 2017, rising a healthy 14.73%, and the trend appears to be continuing. According to a Bloomberg report, analysts expect imports into China from Hong Kong to increase to about 1,000 tons this year, compared with 647 tons in 2016. If so, it would mark the highest import level from Hong Kong to the mainland since 2013

Chinese Gold & Silver Exchange Society president Haywood Cheung told Bloomberg local investors are driving demand as they seek to protect their wealth from currency risks, a slowing property market, and volatile stocks, noting that gold bar sales increased by 60% in the first quarter of this year.

People are looking at other means to invest, a safe haven to protect their renminbi because of the depreciation, so everybody starts to look for safe haven products. So I think we’re going to have a good year.”


Get Peter Schiff’s most important Gold headlines once per week click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!

Related Posts

17 Million Americans Behind on Mortgage or Rent Payments

Even as market mania continues over hopes for a coronavirus vaccine, the economic devastation caused by the government response to the pandemic continues to ravage the economy.  Seventeen million households are behind on rent or mortgage payments, and nearly 6 million Americans say they are at risk of eviction in the next few months.


Foreign Share of US Debt Plunging; Fed Picking Up the Slack

Over the last year, the US government had borrowed over $4.2 trillion. The national debt now stands well above $27 trillion. There is no end in sight to the borrowing and spending and that raises a significant question: who is going to buy all of the bonds necessary to finance the government spending machine? Not […]


Taxpayers on the Hook for $435 Billion in Student Loan Losses

US taxpayers are on the hook for a $435 billion loss on the $1.37 trillion in student loans that were on the government’s books at the beginning of this year, according to an internal study by the Department of Education recently reported by the Wall Street Journal. That’s before any loan forgiveness program that might […]


Money Is Not Wealth

When governments started locking down the economy in response to coronavirus, the Federal Reserve sprung into action. First, it slashed interest rates to zero. Then it quickly launched what we’ve dubbed QE infinity. In effect, that meant printing trillions of dollars out of thin air and pumping them into the economy. Meanwhile, the US government […]


The Fed Now Holds a Record Percentage of US Debt

The US government has borrowed $4.2 trillion in the last 12 months, pushing the total national debt to over $27 trillion. In order for Uncle Sam to borrow, somebody has to lend. So, who is buying all of these government bonds? Foreign and domestic investors, commercial banks and US government entities all buy US debt, […]


Comments are closed.

Call Now