China has become the world's largest gold consumer, but there is a fact but attracted less attention: China is also the world's largest gold producer.
The world gold council quarterly report shows, in the first three months of this year, China physical gold investment demand year-on-year growth more than doubled, reaches to the 90.9 tons, more than 85.6 tons of India needs China has become a global level, the largest physical gold friendship bracelet buyers. The report also highlighted China's growing middle class is more and more big appetite for gold.
Gold as an investment hot spots
Worried about the soaring inflation, and want to look for new investment channel, investors of gold produced very big interest. In the last several months of marketing activities for gold will be more and more.
The world gold council investment research manager WangAiLi said China, strong demand of links of london bracelet gold of the world will be shocked, but also will continue this trend is expected to.
The world gold council of far east area ZhengLiangHao said, China, the world's most populous country social wealth increasing and people of gold of tastes strongly to help promote gold long-term demand.
Chinese investors also value gold has avoid rising consumer price function. Notes and different links of london sale is, gold prices can maintain its value, it also encourages many Chinese investors flock to gold, some smart investors will gold as stocks and real estate and other assets to the alternative investment tools.
Investment demand is just part of the whole demand, jewelry demand remains is another huge gold source of demand. India in this demand of big head, but though of China are trying to catch links of london sweetie up, adorn article demand growth in the first quarter, 21% faster than the 12% increase in India.
The world gold council, said people gold demand in China science and technology industry is strong, because China is becoming a more and more important electronic parts production and assembly center.
Gold producer need to gold
The total demand to rise sharply, as the pace of the rising gold price in all, one of the few since this year so far, gold prices rose 5%.
According to the world gold council report, as the world's largest gold producer in 2010, China sweetie bracelet produced 350.9 tons of gold, but it is not enough to satisfy including metal bar, jewelry and technology USES more than 700 tons, the total demand. Analysts expect, as demand growth continues to exceed supply, China will increase the gold imports.
HSBC holdings in New York a metal analysts Steele said, this is just like the oil to Saudi Arabia as well. Shanghai a officials said, in the near future China may launch a special track gold links of london charm exchange-traded funds (etfs). This may be for retail demand open up a new road.
Steele said, famous saying is called "money where, gold is where to go." Now the gold to China. Etfs may to stimulate the China gold demand is very important, like similar financial derivatives in the United States as the role of the market. Investors face is a highly correlated movements and links of london sweetie rings gold financial products, the less risk of theft. If Shanghai as planned to launch this ETF products, this will undoubtedly diversion of the jewelry market share some. Steele is expected to historical averages, compared with gold prices will remain relatively high.
So, now is a good time to investing in gold? Steele said he has not been authorized to london links jewelry comment, but he said the future price movements is not the only factor. In his view, the gold of real value lies in the function of spreading risk.