That is equivalent to over 50% of global mine production, or 35% of total world supply. Despite import duties India demand has also increased. Between the two countries net demand for gold exceeds the amount produced from global mine production in 2013.
A gold vault that can store 2,000 metric tons, double China’s projected consumption this year, opened in Shanghai this month as owner Malca-Amit Global Ltd. seeks to benefit from rising demand in Asia’s largest economy.
The People’s Bank of China has not provided an update on its bullion reserves since 2009, when it reported a holding of 1,054 tonnes. But the suspicion among some analysts is that China’s central bank has purchased up to 300 tonnes of gold this year.