The general trend is for moving the assets from the West to the East. Hong Kong is a important center for gold because it acts as a doorway to China.
China has overtaken South Africa to become the world’s largest gold producer in recent years. The import of gold into China is still growing at a fast pace, and the flow of the metal through Hong Kong continues to increase. With its 1.3 billion population, China’s emergence as a major destination for gold imports has reinforced the traditional role of Hong Kong as a gateway to the second-largest economy in the world.
A new gold storage facility opened in 2012 to cater to growing demand for gold investments. The facility, the largest in Hong Kong, is located in the International Airport. The space have a capacity of 1,000 tonnes, about 22 percent of what is currently stored in Fort Knox.
The new secure storage facility will compete with services set up by the Airport Authority Hong Kong in 2009 that serviced governments, commodity exchanges, bullion banks, refiners, wealthy individuals and exchange-traded funds.
Hong Kong have a long history of professionalism, independence and integrity, but that is vulnerable to change in the light of recent history. Because Hong Kong is not a democracy and if there was ever a problem between China and the USA, China could easily close off Hong Kong. The country remains probably more vulnerable than Singapore to outside pressure. Gold investors should take this into consideration and not look solely at the present, for they buy gold to preserve their wealth in stormy days too.