China continues to import increasing amounts of gold. This is gold for consumers and not for the China central bank. The Chinese people are storing increasing amounts of their wealth in gold.
http://www.bloomberg.com/news/2013-09-05/gold-imports-to-china-from-hong-kong-climb-on-physical-demand.html
So far this year India has been trying to limit gold imports with increased tariffs and import restrictions. In response there have been many reports of gold confiscated from smugglers at India's airports. Now gold imports by Pakistan are increasing. Much of this gold must be headed to India.
http://www.scrapregister.com/news/1589/indias-neighboring-nation-pakistans-gold-imports-raise-1533-yy-in-july-pbs
This reports suggests that the government will allow more gold to enter India soon. This is very bullish for physical gold. Although the situation is about as clear as the bureaucracy in a former British colony.
http://www.reuters.com/article/2013/09/04/india-gold-idUSL4N0H025C20130904
Demand for gold in India remains very strong even though gold prices in Indian Rupees are at an all time high. Or maybe, just maybe the devaluing Rupee is creating ever more demand for gold as savers flee the fiat.
There seem to be more market commentators lately who don't see the connection between demand for gold and confidence in a currency. They believe that if price goes up demand declines as prescribed by all intro to economics textbooks. Gold is a store of wealth not a commodity such as copper. As confidence in fiat currencies is lost more investors move their wealth to gold and gold prices will increase. Increasing gold prices may be interpreted as a sign that the fiat currency is devaluing and thereby stimulate more demand for alternative stores of wealth such as gold. India has been exhibiting this feedback loop.
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