Stocks in gold mining companies have lagged behind the price of bullion, but that's going to change thanks to Chinese hoarding of the precious metal, Wall Street Daily reports.

China is a large physical buyer of gold and what most don't know is the country is now the world's top gold producer.

"Back in 1970, China didn’t even register as one of the top gold producers. The top five producers at the time were South Africa (67 percent), the former Soviet Union (13.7 percent), Canada (5.75 percent), the United States (3.7 percent) and Australia (1.3 percent)," Wall Street Daily reports.

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"China’s now the number one producer on the planet at 13.1 percent, followed by Australia at 10 percent, the United States at 8.8 percent, Russia at 7.4 percent and South Africa at only 7 percent. (If you add the former USSR nations together, they still top the list.)"

As paper currencies like the dollar and euro remain weak thanks to loose monetary policies, gold will climb higher for the long-term even if it corrects in the near future.

That means stocks in the companies that mine gold can only rise.

Considering how China continues to import gold, expect prices to keep on climbing.

"Bottom line: Gold stocks will at some point benefit from all of this buying. Right now, they trade at levels that are similar to when gold was under $1,000 per ounce," Wall Street Daily adds. "The real question is not if gold shares will go higher, but when."

Gold bullion has soared from below $300 a troy ounce in 1999 to over $1,600 today, briefly spiking above $1,900 in 2011.

Deep into the 12th year of a historic rally, fans are wondering whether the metal is due for a pause, The Wall Street Journal reported. Some market heavyweights say it's time for a correction, but just for this year, as the metal will still make gains over the longer term.

"It's extremely unusual for any asset in history to move higher for 11 straight years," famed commodities investor and noted gold bull Jim Rogers tells S&A Investor Radio.

"That's why I expect the recent correction in gold to continue."

Bullion bulls also still see potential gains as the world works through its problems, including Europe's debt woes and the Fed's bloated balance sheet, The Wall Street Journal reported.

Central banks also have become big net buyers of gold, with the official sector absorbing 455 metric tons last year, more than at any point since the mid-1960s, according to Thomson Reuters GFMS, which tracks the gold market.

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