BEIJING (Scrap Monster): The Chinese net gold imports from Hong Kong in 2014 declined sharply from the record highs posted in 2013. The gold shipments from Hong Kong to China during the year dropped 32% from 1,108.8 tons in 2013 to 750 tons in 2014, said figures released by the Hong Kong Census and Statistics Department.

 

The ban imposed on expensive-gifts as part of the anti-graft drive in China has dented the demand for luxury goods including bullion bars and coins. The metal has also lost its sheen as investment bet with stock markets giving handsome returns during the year. The Chinese gold imports from Hong Kong during the month of Dec ’14 alone tumbled nearly 36% when compared with the same month in 2013.

 

The Chinese mainland buyers purchased 128.4 tons of gold inclusive of scrap during Dec ’14. The gold shipments declined marginally when compared with the total shipments of 149.3 tons in Nov ’14. The gold exports from China to Hong Kong totaled 69.6 tons, rising by over 12% when compared with the total exports of 62.1 tons in November. Month-on-month, the net gold imports by China dropped from 87.2 tons in Nov ’14 to 58.8 tons in December 2014.

 

Trade sources indicate that a fall in demand was anticipated due to slowdown in jewelry sales. Furthermore, gold purchases are expected to stabilize during 2015. According to forecasts by London-based World Gold Council (WGC), the long term demand outlook for gold in China continues to remain bright with demand projected to surpass 1,350 tons by 2017. The global flow of gold from west to east will probably gain further momentum by that time.