Malca-Amit Global, a Hong Kong-based company, has opened a new gold vault in Shanghai free trade zone that can store 2,000 metric tonnes of gold.
The move by the company is to benefit from the rising demand of gold in Asia.
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Malca-Amit Global precious metals general manager Joshua Rotbart said the facility is the biggest for the company and can also store diamonds, jewellery and art.
According to the World Gold Council (WGC) forecast, usage of gold in China may increase by 29% to reach 1,000 tonnes by the end of 2013, overtaking India as the biggest user, driven by lower prices and higher incomes.
Hong Kong-based Precious Metals Insights managing director Philip Klapwijk said such a facility is a massive vote of confidence for the Chinese gold market.
"The trend for demand has been very strongly positive," Klapwijk added.
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By GlobalDataSpeaking at the Waigaoqiao free-trade area, Rotbart said the Shanghai vault is targeted at international and Chinese financial institutions, as well as the arts community.
