Australia's gold export to China boom as India imports fade
By GCRU Gold News on Friday, June 20 2014, 20:28 - Permalink
The fall in India's gold imports may have been good for its economy, but was bad for trade with Australia. Trade between India and Australia has dipped sharply by nearly 14 per cent to A$15.2 billion in 2013, as compared to the previous year. Official data attributes the dip mainly to a massive drop in gold imports from Australia.
Last year, as the Indian government imposed higher import duty curbs, the country’s trading partners, such as Australia, Switzerland, the UAE and South Africa, were apprehensive that the balance of trade could get skewed if the restrictions continued. The apprehensions have now borne fruit.
Unlike India, Australia's total trade with China in 2013 jumped to A$150 billion, an increase of over 20% over 2012. China accounts for almost one quarter of Australia's two way trade, and is also the country's largest two way trading partner, the largest export market (at A$102 billion) and largest source of imports (at A$49 billion).
In 2012, Australian sales of gold to China had surged a staggering 905.4%. Gold had soared past coal as Australia's second most valuable physical export to China, with sales for the first eight months of the year bringing in $4.1 billion.
Australia's total trade with China in 2013 jumped to A$150 billion, an increase of over 20% on 2012. China has also increased its interest in Australian goldminers last year, and has taken a majority stake in Focus Minerals.
Though India and China continue to be the strongest demand centres for gold, Newcrest Mining chief Greg Robinson told newswire agencies last month that the crucial Indian market for gold would not be dampened despite efforts by the Indian government to temper gold imports.