INDIA: The Federation of Indian Exporters Organisations has said India exported gold jewellery to the tune of $12.12 billion in the first nine months of this fiscal, which was just 30.68% of the value of imported gold.
Between April to December 2012, gold imports jumped 40.23% over
$28.16 billion imported during the corresponding period of April to
Indians save roughly 30% of their income, as opposed Americans,
who save 5%. Plus, Indians are getting richer all the time. Once a very
poor country, the rich and middle classes now outnumber the poor in this
nation of 1.2 billion. The country has the sixth-largest economy in the
CHINA: The net gold flow from Hong Kong to mainland China in November hit
its second-highest level in 2012 after April. Hong Kong exported 90.763
tonnes of gold to mainland China in November, an increase of 91 percent
on the month. Its gold imports from China rose 23 percent to 27.681
tonnes. The total net gold flow in the first eleven months of the year,
at 462.75 tonnes, already exceeded last year’s total of 379.573 tonnes,
Reuters calculations showed.
China and India as the biggest (gold) markets
experienced the same percentage increase in nominal GDP, wages and their
currencies’ gold price. Locally, the gold prices did not change when
expressed in terms of purchasing power, which is fundamentally different
to the West. China has been the trendsetter in their reaction to
financial repression (started in 2000). The Chinese population has
chosen consciously and hugely for physical gold investments as a way to
escape from financial repression.
IN CHINA AND INDIA GDP IS RISING IN LINE WITH THE RISE IN THE GOLD PRICE SINCE 1980. IN THE US THE OPPOSITE HAS BEEN TRUE. THUS GOLD IS STILL RELATIVELY CHEAP IN ASIA