Australia's gold sales to China hit $4.1 billion in the first eight months of this year as it surged by a whopping 900 percent. According to Australian Bureau of Statistics, the yellow metal became the second most valuable physical export to China, surpassing coal and only behind iron ore.
The unprecedented jump in gold sales, along with continued acceleration of export revenues for other commodities led by coal, up 80 per cent to $4bn, caused total exports to China to rise by 10.7 per cent for the year to August, the Bureau said. Perth Mint supplied most of the gold to China through a variety of banks. Analysts said Chinese buyers are hoarding the precious metal amid a slowing economy, property-buying restrictions and uncertain financial markets as its central bank increases its holdings. China's foreign currency reserves of gold are low and its move to build them up will provide an important base demand for gold, they added.
