China’s total gold demand is projected to reach 1,000 tons in 2013. In order to support that demand, a gold vault, able to store up to 2,000 metric tons, opened this month in Shanghai.
This is the largest vault built for Malca-Amit Global Ltd., a Hong Kong-based company. It could hold bullion worth about $82.5 billion, and can also hold diamonds, art and jewelry.
The increased consumption of gold in China may overtake India as biggest user, and increase as much as 29 percent. The demand is strong, and this new site, targeted at international and Chinese financial institutions, is a vote of confidence for the market in China.
Malca-Amit also has space in Singapore, New York, Zurich, Geneva, London and Bangkok. It expects high demand from foreign banks, since it will put less of a limit on operations in China.
Story and photo courtesy of Bloomberg