According to the Chinese government gold imports in the month of August 2012 plunged to 53.5 metric tonnes from 76 metric tonnes a month earlier. As you can see this is a significant drop. It can be partially attributed to the increased production of Chinese gold because China produced 41.4 metric tonnes in August, which is 12 metric tonnes more than the average of 30 metric tonnes of gold produced per month in China since 2012. China produced 250 metric tonnes of gold since 2012.
|Chart 1: China Gold Imports from Hong Kong|
If we look at net gold imports from Hong Kong to China on balance, we have 29.3 metric tonnes of net imports, which is back at the lows of January 2012 (Chart 2). Far less than the net imports in April - July 2012.
At least it is still in line with the 2012 numbers, but I had hoped China would buy more gold.
|Chart 2: China Net Gold Imports from Hong Kong|
Disclosure: I am long GLD.