(Yicai Global) Nov.22 -- A value shift in China's economy brought on a wave of concerns among the global market. Reuters reported that China's gold imports by way of Hong Kong dropped 8.5% last September. It went from August's 32.57 tonnes to 29.80 tonnes. This has been the lowest since 2014.

It was also reported that the drop might have been caused by several reasons. Dick Poon, General Manager at Heraeus Metals Hong Kong Limited, stated that demand for the commodity may have been a primary cause. "A slowdown in overall demand and the possibility that it has been taking a longer time for banks in China to be issued their import quotas could have contributed to the drop in September," he explained. Other finance experts argue that a preference for riskier investments may have been a reason as well.

The decline was unexpected since China is currently one of the world's biggest importers of gold. The Balance shares that the Eastern powerhouse consumed over 23% of the global supply between 2014 to 2015. Because of this, it has caused a boom in several industries, such as mining and agriculture. The recent changes could inadvertently affect these industries, and impact the nation's wealth.

The events may directly impact the Yuan, which in turn will influence the world's biggest economies. Intelligent Partnership stressed that a drop in the currency will have consequences for both China and the nations that export to it. Its devaluation means that imports will be more expensive. Everything turns into a cycle, which can lead to less demand for commodities including gold. If the Yuan continues to drop, so will the currencies of the countries that export numerous commodities to China.

If that happens, many central banks may need to take action to protect their own currencies. Some economies might even go as far as to institute sanctions against China. In doing so, tensions between world currency markets will grow and there will be instability within the global financial sector.

The Straits Times detailed how China plans to internationalize the Yuan further by using it on oil pricing instead of the US dollar. Apart from gold, the country is also among the largest importers of oil. Experts project that even after a few years from now, China's demand will still be far bigger than other countries including the US. But if its currency weakens, the ambitious scheme could get delayed.

In another scenario, the Yuan could falter after the plan has come to fruition. This is even more dangerous to the nation's economy as it could damage relations with the biggest oil suppliers in the world such as Saudi Arabia.

Despite such economic events, however, gold is still one of the most lucrative investments and in-demand commodities in the world. FXCM discloses that traders often use this metal to lessen the risk of inflation and other negative economic impacts. It was also emphasized that gold has no expiration, similar to copper. Investments in gold can be held as long as the trader sees it as necessary.

As of now, no definitive reasons as to the drop of gold net imports have been confirmed. Reuters also pointed out that the data from Hong Kong may not present full picture as gold is also imported through Beijing and Shanghai as well. However, multiple economies are closely watching the Chinese markets and how gold and other commodities will fare in the months to come. Being one of the biggest economies in the entire world, all of its activities can have an effect to the rest of finance industry, directly or otherwise.

Brian Montgomery, the author of this article, graduated with a degree in Financial Mathematics from New York University. He has since contributed to various financial blogs, such as Business Insider and The Wealth Report.

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