China is now the biggest buyer of physical gold in the world, overtaking India in 2013, according to the World Gold Council. Imports from Hong Kong of over...

China is now the biggest buyer of physical gold in the world, overtaking India in 2013, according to the World Gold Council. Imports from Hong Kong of over 100 tonnes a month are the norm, and the two biggest buyers will collectively consume over 2,000 tonnes this year according to expectations. With 600 million people joining their middle class this decade, and with few other alternatives (their funds management industry is tiny), the trend of Chinese gold buying is unlikely to change soon. Their central bank needs a lot more of it too. On top of this, the long term major driver of gold prices (US real rates) look set to stay supportive for many years to come. In environments where real rates are below 2%, gold prices appreciate by 19% per annum on average. Despite the volatility, and the 2013 correction, the future for precious metals is very bright indeed. Full report here (VIEW LINK)