Author: Paul Ploumis10 Apr 2014 Last updated at 04:53:57 GMT

SHANGHAI (Scrap Monster) : As per the latest data released by the China Gold Association (CGA), Chinese gold consumption in the year 2013 showed 41 % upsurge from previous year, reaching 1,176 tones. This indicates that China may be holding much more gold than estimated previously. Online precious metal traders speculate that China posses more gold with them as realized today. Meantime, it is also said that about 500 tones of gold produced from Chinese mines and scrap yards are not been accounted by the Gold Association of China yet, which may further rise the gold holding expectation.

According to a precious metal researcher at GoldMoney, Mr. Alasdair Macleod, in addition to the present data, Chinese consumption in 2013 alone account to stand at 4,843 tones. After conducting researches on the Chinese gold reports, Macleod increased the estimate of gold consumption stating that the amount of gold vaulted in China considerably over the year. As per his findings, the amount of vaulted gold increased steadily in 2013. He added that the changes in the level of vaulted gold are found to be increasing consistently to equal the increase in deliveries. The rise in gold holdings reflects the geo-political strategy of the country, says Macleod.

China has become the superior power over America in terms of gold holdings. China is also the largest gold producer of the world. Along with consuming a major part of the gold mined in the country, China is also a leading net importer of the yellow metal. After a successful 2013, China is targeting at about 35 m ounces in terms of net import of gold. China is also the largest holder of US treasuries in the world which has made the country independent. They are also in the way of diversifying its gold reserves.