Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

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.”

TaxFreeGold.Banner.1000x285

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

Government Policy Changes Should Boost Indian Gold Market

Some policy shifts recently announced by the Indian government in its Union Budget will likely have a positive impact on the country’s gold market. India ranks as the second-largest gold-consuming country in the world, second only behind China. The three key policy changes that will likely affect the gold market are:

READ MORE →

Fed Expands Record Holdings of US Debt

The Federal Reserve expanded its record holdings of US Treasuries in the fourth quarter of 2020 as it continued monetizing the massive federal debt. The Federal Reserve added another $253 billion to its Treasury holdings in Q4 according to the Fed’s Treasury International Capital data released on Feb. 16. That brought the central bank’s US […]

READ MORE →

US Treasury Department Set to Unleash Another Tidal Wave of Inflation

The Federal Reserve increased the money supply at a record rate in 2020. And a move recently announced by the US Treasury Department will mean even more money flooding into the marketplace. In other words, another tidal wave of inflation.

READ MORE →

The Fed Just Keeps Getting More and More Dovish

Is Jerome Powell the most dovish Fed chair yet? Peter Schiff said he wasn’t when he first took the position and was raising interest rates. But he is now. The minutes from the January FOMC meeting released last week bear this out. “We’re all doves now. That is the problem, the Fed gets progressively more […]

READ MORE →

Kansas Bill Would Make Gold and Silver Legal Tender in the State

A bill introduced in the Kansas House would recognize gold and silver specie as legal tender and repeal all taxes levied on it. The legislation would pave the way for Kansans to use gold and silver in everyday transactions, a foundational step for the people to undermine the Federal Reserve’s monopoly on money.

READ MORE →

Comments are closed.

Call Now