Gold shipments from Hong Kong to China rocket to second-highest level ever - Wealth Managers

"A lot of the Chinese were ... taking advantage of prices that have been coming off"

Just when you thought demand for gold couldn't get any more massive in China as it prepares to unthrone India as the world's top bullion consumer, a new report from Hong Kong has set the bar even higher.

"Gold shipments to China from Hong Kong rose in October to the second-highest on record as jewelers and retailers bought the metal to build up inventories ahead of a peak-demand season at the end of the year," Bloomberg reported.

Net imports hit 129.9 metric tons in October, from 109.4 tons in September. That's second only to the all-time high of 130 tons in March. Furthermore, imports have topped 100 tons for

"It's a strong number and it certainly puts China on track to import more than a thousand tons," said Victor Thianpiriya of Australia & New Zealand Banking Group. "You do get the usual seasonal pickup towards the last quarter of the year, but a lot of the Chinese were also taking advantage of prices that have been coming off."

"October was also the beginning of the wedding season, which could have prompted more demand for jewellery," said Chen Min of Jinrui Futures.

If October was any indication of burgeoning demand for gold in China, look out: China and numerous other nations with large Chinese populations (such as Indonesia, Malaysia, and Vietnam) celebrate the Chinese New Year holiday on Jan. 31, 2014. That buildup, of course, will be coinciding with Western demand for gold jewelry for the Christmas holidays. Look for the December and January numbers out of Hong Kong to potentially shock and awe gold market watchers.

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