The London Bullion Market Association (LBMA) conference recently took place in Hong Kong.

Singapore wanted the conference — and dropped sales tax on gold — but lost out. Hong Kong is the gateway to China, after all... and China is where all the gold is flowing.

The demand for gold has been growing at around 24% per annum since 2007.

China's share of global demand has doubled from 10% in 2007 to 21% in 2011 and, as you can see from the chart, China recently overtook India as the number one destination of gold:

Chinese Metalheads

China is now the world's largest gold producer and has the world's largest demand.