Saturday, 2 July 2011
Posted by
Admin Hijrah Dinar
Amidst 5% inflation and mounting concerns about the dollar, China is
increasingly turning to gold. Both the central bank, and its citizens.
It's not just bars and coins either. Gold jewelry sales are surging as wages rise.
More from Bloomberg:
Gold imports by China may increase after investment demand more than doubled in the first quarter, with the country overtaking India to become the largest market for gold coins and bars, the World Gold Council said.
China produced 340 metric tons of gold last year and consumption was about 700 tons, leaving a gap of 350 tons to 360 tons, Albert Cheng, Far East managing director at the council, said yesterday.
...China’s investment demand jumped 123 percent to 90.9 tons in the first three months, compared with an 8 percent rise to 85.6 tons for India, the council said.
China's insatiable appetite for gold is a new phenomenon, as shown by this chart from ZH:
On a per-person basis, China still has very little gold. There is a LOT of upside in this growing demand picture.
There was a good quote from the Bloomberg piece, when they talked with a wealth manager in Shanghai about the rising demand:
"Gold has taken on a new role in China amid concern about inflation," Song Qing, a director at Lion Fund Management Co., said by phone from Shanghai. "It is increasingly being seen as an asset allocation choice. Just imagine the total wealth in China and even a small percentage of that choosing to buy gold. This demand is going to be enormous."
Also see this article, where we look at the possibility that China will spend up to a trillion dollars of its foreign reserves on gold.
It's not just bars and coins either. Gold jewelry sales are surging as wages rise.
More from Bloomberg:
Gold imports by China may increase after investment demand more than doubled in the first quarter, with the country overtaking India to become the largest market for gold coins and bars, the World Gold Council said.
China produced 340 metric tons of gold last year and consumption was about 700 tons, leaving a gap of 350 tons to 360 tons, Albert Cheng, Far East managing director at the council, said yesterday.
...China’s investment demand jumped 123 percent to 90.9 tons in the first three months, compared with an 8 percent rise to 85.6 tons for India, the council said.
China's insatiable appetite for gold is a new phenomenon, as shown by this chart from ZH:
On a per-person basis, China still has very little gold. There is a LOT of upside in this growing demand picture.
There was a good quote from the Bloomberg piece, when they talked with a wealth manager in Shanghai about the rising demand:
"Gold has taken on a new role in China amid concern about inflation," Song Qing, a director at Lion Fund Management Co., said by phone from Shanghai. "It is increasingly being seen as an asset allocation choice. Just imagine the total wealth in China and even a small percentage of that choosing to buy gold. This demand is going to be enormous."
Also see this article, where we look at the possibility that China will spend up to a trillion dollars of its foreign reserves on gold.
Category:
Gold Saving / Investment
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