Hong Kong’s largest gold-storage facility, which can hold about 22 per cent of the bullion currently in Fort Knox, will open in September to meet rising demand from banks and the wealthy, according to a story on Bloomberg.

The new facility will rival services offered by the Airport Authority Hong Kong, which began storage operations at a 340 square meter site in 2009 for a number of institutions, wealthy individuals and exchange-traded funds, said the report on the newswire.

The facility, located on the ground floor of a building within the international airport compound, has capacity for 1,000 metric tons, said Joshua Rotbart, general manager for the Hong Kong-based company’s Malca-Amit Precious Metals unit. The firm also plans to open in Shanghai. 

Two of the vaults may hold assets, including gold, for banks and financial institutions, and others will be used for diamonds, jewelry, fine art and precious metals, said Rotbart in the story.

The move in Hong Kong reflects increased demand for gold in Asia even as the commodity struggles to sustain its rally into a 12th year. Gold-demand growth in China, the world’s second- largest user after India last year, is slowing, according to the World Gold Council.

Hong Kong is seen as an important center for gold because it acts as a doorway to China, say analysts.  Sunil Kashyap, head of Asia-Pacific foreign exchange and precious metals at Scotiabank, was cited as pointing out that gold hubs are in New York, Zurich and London, while there is currently none in Asia.

China’s gross domestic product expanded 7.6 percent in the second quarter, the slowest since 2009. An opposite trajectorary was seen in the gold market as investors sought a safe haven from the global downturn. Gold demand in the country is forecast to soar 13 per cent to 870 tons this year, according to the most recent forecast from the World Gold Council.