More evidence of the record amount of gold (GLD) bullion flowing from the West to the East came earlier today when the Hong Kong Census and Statistics Department reported that net gold imports to mainland China totaled 111 tonnes in August.
This was down slightly from 116 tonnes in July and below the record net imports of 136 tonnes in March, however, it keeps China on pace to shatter previous gold demand records this year.
As shown below, this gold buying was spurred by falling metal prices in the spring and, despite many predictions that China’s gold imports would fade over the summer, that has clearly not happened yet.
This marked the fourth straight month of demand exceeding 100 tonnes as China now seems all but certain to surpass India in 2013 as the world’s biggest gold buyer.
Through August, China’s net gold imports from Hong Kong were over than 700 tonnes – more than the amount of gold that has flowed out of Western gold ETF trusts – and this puts the nation on pace for net imports of over 1,100 tonnes this year.
Much of this metal has taken a familiar route in 2013 – from London (where gold ETF holdings are found), to Switzerland, to Hong Kong, and then into mainland China…
[To continue reading this article, please visit Seeking Alpha.]