Investment Demand Turns PRC Into Big Gold Importer

As reported by Tony D'Altorio of Investment U., mainland Chinese investment demand has turned the PRC into a huge gold importer, despite there being many mines in the country. It's almost at the point of pushing India to #2 in the gold-demand list.

Already the world’s biggest gold mining country, China has now turned into a major buyer. It imported over 209 metric tons of gold during the first 10 months of the year… a fivefold increase from the estimated 45 metric tons in 2009.

And according to the World Gold Council, Chinese retail demand for the metal jumped 70% to 153.2 tons October 09’ – September ‘10 compared with the previous 12 months. Yet demand for gold jewelry rose just 8% during the same period to 373.6 tons.

This highlights gold’s increasing popularity as a hedge against inflation and economic uncertainties. China’s bullion bullishness is clearly having a big effect on global markets.

It is. Like more quotidian commodities such as oil and copper, emerging-market demand for gold is pushing it up way beyond what would be expected if the U.S. only was counted. Evidently, inflation is America's most successful export.

[How many people know that the term "exporting inflation" was coined in the 1960s? Yes, it was the same United States that was the exporter - although back then, the "importer" was Europe.]