Malca-Amit Global Ltd has opened a private vault with storage capacity of 2,000 tonnes of gold in Shanghai as China’s gold consumption continues to rise, doubling over the past year.
The vault’s capacity is twice that of China’s projected 2013 consumption.
“There’s going to be more gold coming to China,” Malca-Amit precious metals manager Joshua Rotbart told Businessweek.
“This [free trade zone] can be used as a trade hub basically, so foreign banks can trade with domestic banks within this facility, saving costs and time.”
“We expect big demand from foreign banks and we are talking to a few… it’s a step forward for them because it puts less limit on how they operate in China.”
“Such a facility is a massive vote of confidence for the Chinese gold market,” said Philip Klapwijk, managing director of Precious Metals Insights Ltd.
“The trend for demand has been very strongly positive.”
Reprinted by permission of MINING.com