• Gold: $ 1,283.10
      Silver: $ 15.43
      Platinum: $ 804.53
      Palladium: $ 1,356.28

    • Gold: $ 1,283.10
      Silver: $ 15.43
      Platinum: $ 804.53
      Palladium: $ 1,356.28

Precious Metals * Private Vaulting * Refinery

Gold Demand in China Headed for Record

Gold Demand in China Headed for Record

Gold demand in China rose again last week, as consumers, investors and the central bank continued to take advantage of declining prices ahead of an expected US rate increase later this month.

Chinese Shanghai Gold Exchange (SGE) physical bullion withdrawals exceeded 54 tonnes for the week ending November 20, bringing the yearly total to 2,313 tonnes. If gold withdrawals continue at the current pace until the end of the year, the annual figure will reach nearly 2,600 tonnes, which is around 20% higher than the 2013 record.

Much of the physical demand for bullion has come from the People’s Bank of China, which has been increasing its gold reserves by up to 19 tonnes each month in an effort to diversify its massive foreign exchange reserves. The central bank saw its gold reserves rise to 1,722.5 metric tonnes at the end of October, well above the September rate.

China has been buying gold at a feverish pace since it unexpectedly devalued its currency, the yuan, for the first time in two decades in an effort to lift struggling exports. The world’s second-largest economy is experiencing a protracted economic slowdown as part of a painful restructuring process designed to make China a consumer-driven economy.

According to the World Gold Council, consumer demand has also been on the rise. China’s consumer demand for gold rose 13% year-on-year in the third quarter, with demand for jewelry also rising 4%.

Meanwhile, investment-grade gold bar and coin demand rocketed in the third quarter, rising 70% year-on-year. Investment demand grew 75% annually in Hong Kong.

The World Gold Council’s Q3 report also showed that physical bullion demand was up throughout the world. Global central banks added more than 175 tonnes to their gold reserves, marking the 19th consecutive quarter of increase. Global demand for investment-grade bars and coins surged 33% on bargain-hunting.

Gold prices are trading near six-year lows and could fall closer to $1,000 an ounce before the end of the year. Gold for February delivery was trading at $1,063.40 per troy ounce on Tuesday afternoon. The yellow metal has declined more than 10% year-to-date.

Byzantium Offers Investment-Grade Bullion

Investors looking to take advantage of bargain prices are encouraged to explore Byzantium’s inventory of gold bars and coins. Byzantium currently offers the popular 1 oz. Chinese Gold Panda coin that is issued by the People’s Bank of China.

Gold bars are also available from the world’s leading suppliers, such as PAMP and Ohio Precious Metals. Sizes vary from 1 oz. to 1 kg.

Commercial Smelting and Refining Services

Byzantium also offers commercial smelting and refining services, including scrap removal for diamonds and other jewelry. Some of Byzantium’s clients include coin dealers, pawn brokers, jewelry manufacturers, gold brokers and dental labs.

For casting options, click here.

Husni “Sam” B, Byznaitum International Ltd SEZC


O: +1 345-974-7000


PO Box 2154, Grand Cayman, KY1-1105, Cayman Islands.

Email: info@byzantium.ky

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