Where is China’s missing gold?

By Shu-Ching Jean Chen
Forbes

China has recently become the world’s largest consumer of gold. Uniquely, it also ranks as both the largest producer and the biggest importer of gold. Yet a big question surrounds the true state of the Chinese demand for gold; the answer would determine how global gold prices are likely to fare. The expectation that Chinese investors will sustain a voracious appetite for gold has helped to spark a recent rebound in gold prices.

Yet speculation abounds about a large trove of gold that seems to be missing from the global market. Analysts calculate that up to 500 tons or more are stashed away, based on the difference between China’s domestic gold production of 428 tons in 2013 plus its estimated gold imports of at least 1,158 tons, and its annual demand of about 1,066 tons. The Chinese government does not release an import figure, so this number is disputed.

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