This is off the market oracle, written by Nick Barisheff.
Link http://www.marketoracle.co.uk/Article25507.html
This particular part makes for some interesting reading..
In December (2010) we learned that China had imported 209.7 metric tonnes of gold in the first 10 months of the year. This was a 500 percent increase over the same period of 2009 and on top of their world leading domestic gold production.
By the third quarter, Indias gold imports, both commercial and private, for the year were 624 tonnes, putting them 100 tonnes above the previous years total of 595 tonnes. Fourth quarter purchases could put Indias annual total over 750 tonnes.
China and Russia need to acquire gold to bring their gold reserve ratio to outstanding currency closer to Western central banks. Russia needs to acquire at least 1000 tonnes and China at least 3000 tonnes to remain on parity with the US. Chinese officials have stated publicly that China would like to acquire at least 6000 tonnes. Unofficially they have stated targets as high as 10,000 tonnes.
Last month, I was a speaker and panellist at the China Gold and Precious Metals Summit in Shanghai. I can confirm that Chinese buying, both official and public, is a major trend that is not only well in place, but may be the single most important influence on the price of gold in 2011. As I said, the Chinese see gold quite differently from the way we see it. If we are to understand golds price direction in 2011 and beyond I believe it is essential to understand the mindset the Chinese have built around gold.
