Bugs to Bernanke: That's all, folks!

China on Track to Become Top Gold Buyer

China's gold imports are estimated to have more than doubled from a year ago in the run-up to Chinese new year, putting the country on track to overtake India as the world's largest consumer of the precious metal.

The growth in demand is being attributed in part to Chinese families giving each other gifts of gold instead of traditional red envelopes filled with cash.

The growth in demand is being attributed in part to Chinese families giving each other gifts of gold instead of traditional red envelopes filled with cash.

Fears of inflation have also driven demand for gold as a retail investment.

Precious metals traders in London and Hong Kong said on Wednesday they were stunned by the strength of Chinese buying in the past month. "The demand is unbelievable. The size of the orders is enormous," said one senior banker, who estimated that China had imported about 200 tonnes in three months.

Source: GATA

By Leslie Hook and Jack Farchy
Financial Times, London
Wednesday, February 2, 2011

http://www.ft.com/cms/s/0/f79b1824-2eed-11e0-88ec-00144feabdc0.html