China Becomes World’s Largest Gold Buyer

China just bought roughly as much gold in the first quarter of 2011 as they did between the years of 2008 to 2001 combined.  China’s first quarter 2011 purchases almost equal all the gold they purchased for the entire year of 2009.

Zero Hedge reports:

China becoming the world’s largest gold buying nation is very important. While informed analysts have been saying that this would inevitably happen much of the commentary and most of the public remain completely unaware of the huge implications that Chinese gold demand has for the gold market.

Indeed, there continues to be a huge level of ignorance regarding the scale and sustainability of China’s, but also India’s and other large and increasingly wealthy Asian countries, demand for gold and silver bullion.

Chinese investors bought 93.5 tonnes of gold coins and bars in the first quarter. China produced 340 metric tons of gold last year and consumption was about 700 tonnes, leaving a gap of nearly 360 tonnes.