China expanding even further into goldIt is believed that China now consumes the most gold in the world, though unofficial as China hasn`t updated its gold totals in almost 7 years.
However, it is official that China now produces the most gold in the world - over 400 tonnes per year. Almost all of that gold remains in china - most of it likely going into government/Central Bank vaults and some of it consumed by the citizens of China. Also, lots of gold goes from the west, refined into the Chinese favourite size bars in Switzerland, then gets shipped via Hong Kong into China (some bars may be shipped directly into Shanghai). China also eats up some of the annual mine supply outside of China. Though, it is likely more difficult to determine how much.
I think most people focus entirely on the above ground gold holdings by China. However, there is also a story developing with regards to in ground gold deposits held by gov`t of China or Chinese companies outside of China. Over the last several years China has been buying up a number of deposits outside of China (Africa, South America, etc.). When these in ground deposits go into production in future years the produced ounces will likely all be going back to China. I think China has spent something like $2 billion to purchase these (outside of China) deposits. This is before the new purchases identified below.
Two new developments on the China front:
1) China sets up new $16 billion gold fund
https://www.marketwatch.com/story/china-sets-up-giant-gold-fund-to-expand-its-market-power-2015-05-27
2) China`s large mining company (Zijin Mining) entered into an ongoing strategic alliance with Barrick. The first deal calls for spending $300 million to purchase an interest in one of Barrick`s mines. Zijin has also announced a $400 million deal for 50% of an Ivanhoe copper property.
https://www.bloomberg.com/news/articles/2015-05-26/biggest-gold-miner-barrick-forms-china-venture-with-zijin