China’s gold demand will reach record
China can achieve the production and consumption of gold this year due to record gold prices increased strongly and operators to expand production, China Gold Association said on November 29.
Gold demand in 2009 of China can be up over 450 tons, compared with 395.6 tonnes in 2008, while production will reach 310 tons, up 28 tons, Mr Zhang, deputy general secretary of the Association, said in Kunming (Yunnan).
Annual grow rate of China gold production in the past 8 years at 9.5%, Mr Zhang said.
In 2007, China surpassed South Africa, became the largest gold producing countries in the world. Feedback in July this year, the World Gold Council (WGC) predicts China could exceed India became the largest gold consuming country worldwide.
Director of investment, research and marketing of the WGC, Mr. Marcus Grubb, said in Hong Kong today 24/7 for, China's gold demand is rising and will continue to increase, while consumption in India India - the country holding the position consumed more gold in the world - the trend of reduction evolutions.
Figures published in May of WGC feedback shows that the 1st Quarter 2009, total gold demand of India has dropped 83%, left 17.7 tons, 107.2 tons from the same period last year. Meanwhile, China's gold demand increased by 1.8% increase to 105.2 tonnes from 103.3 tonnes level.
"Global financial crisis caused inflation needs to invest in assets like real estate, cars and gold consumer China Strengthens"
In addition, the "record price increase has improved the profitability of the mining of China, encouraging them to expand production," Mr. Zhang said. Share prices of mining companies has risen sharply in China this year.
Since the beginning of this year, world gold price has risen 34% and towards increasing the 9th year by the central banks, pension funds and individual investors switched to buying gold to deal with the devaluation of US dollar and risks of inflation.
However, gold also can be up to 1,500 per ounce if the U.S. dollar continues to weaken for low basic interest, Kenneth Tropin, Chairman of Graham Capital Management company, said the magazine Barron issued on 30/11.
Gold prices have received support from the International Monetary Fund to sell gold reserves to the central banks as Sri Lanka, India, Mauritius. China is also "likely" become gold buyer in a few weeks, commented Ben Westmore, an analyst fromthe National Australia Bank.
