According to reports, China seems to amass tons of gold with the view of becoming the world’s leading gold trading center. The People’s Bank of China is taking this extraordinary effort, said gold dealer and market analyst Mike Fuljenz.
According to Fuljenz, the transfer of gold from Switzerland, known to be a traditional European gold trading center, to China is part of the “global gold migration from the West to the East.” It has also been reported that China is not only relying on Swiss import but also buying from US ETF traders, he mentioned. Fuljenz further went on to say that there are indications that the trading volumes at the new Shanghai Gold Exchange(SGE)are more than what is otherwise reported in the global gold market.
Fuljenz also said, “Over 65 metric tons of gold were withdrawn in the week ending September 25, making a year-to-date total of 1,958.7 tons, an annual rate of nearly 2700 tons which represents about 90 percent of the newly-mined gold totals this year.”
It must be noted that in the last six years, China has imported thousands of metric tons of gold. In the first two months of 2015 alone, there has been an import of more than 410 tons.