Bullion Management Group has launched a new Hong Kong office in preparation for a continuing increase in the demand for gold from Asia, particularly from China.

Quoting the latest Gold Demand Trends issue of the World Gold Council, the company said in a statement that demand in 2010 had reached a 10-year high in tonnage and an all-time high in value, with China as the strongest market. This volume is likely to become stronger in 2011, with the Financial Times reporting that China's gold imports in the first two months of the year could be more than double those of the entire 2010.

"Gold isn't the only precious metal Asian buyers are interested in. Silver imports to China increased roughly fourfold from 2009 to 2010," Nick Barisheff, chief executive of the Toronto-based firm, said.

"As inflation and geopolitical tensions rear their heads in 2011, we are seeing significant Asian interest in geographic diversification for fully allocated and insured bullion. 2011 will be an even bigger year for precious metals in Asia," he added.

The new Hong Kong office will be led by Tony Leigh as managing director of BMG (Asia). Leigh, who brings with him 25 years of banking and wealth management experience, will be spearheading the firm's business development and marketing initiatives in the region, with a focus on Greater China, Japan, Singapore, Malaysia, and the Philippines. He reports to Nelson Leung, the head of Asian operations at BMG (Asia).