WGC: Chinese gold demand to keep rising

Chinese demand for Gold to keep rising, said World Gold Council in a research note.

“Gold is traditionally bought as a gift during the Chinese New Year and 2012 looks set to be a strong year for demand with gold imports hitting a record amount in November 2011, but we see this as part of a longer-term trend,” said WGC.

“China, along with India, has been one of the focal points in the gold market over the last decade as its share of total global demand has climbed from 6% in 2000 to 18% in 2010. This remarkable shift in the global demand balance has come about as the combined forces of growing wealth, deregulation, and increased access, but heightened economic concerns have also compelled consumers to act on their deep affinity for gold.” Chinese demand shows no signs of abating, the WGC added.

“Near-term inflationary expectations and rising income levels are likely to support the investment case for Gold as an asset class, especially given that Chinese consumers are high savers and are looking to gold to protect their wealth,” WCG concluded. – CommodityOnline

Tags: China gold demand

Posted by admin on Jan 27 2012. Filed under Gold predictions. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry