China becomes world's biggest market for gold investment

13:35, May 23, 2011      

Email | Print | Subscribe | Comments | Forum 

In the first quarter of 2011, China's gold demand grew rapidly, and China has overtaken India to become the world's biggest market for gold investment, according to the "Gold Demand Trend Report" recently released by the World Gold Council (WGC).

The report indicates that Chinese investors purchased a total of 90.9 tons of gold bars and coins in the first quarter, which is twice the amount of the same period last year and higher than India's 85.6 tons. In terms of the demand for gold investment, China is also 2 percent higher than India's 23 percent.

The report also shows that in the first quarter of 2011, China's total demand for gold was 981.3 tons, the demand for trading gold bars and coins rose by 52 percent, and the average gold prices increased by 25 percent. The sharp rise of gold purchases is basically the result of the demand for investment.

Furthermore, the gold price dropped by 8 percent at the end of January to 1,300 U.S. dollars per ounce, which also created a promising opportunity for investors. As for the growth of China's demand, the WGC thinks that since China's inflation expectations have not yet decreased, the wealth preservation function of gold is still one of the main factors behind the investment craze.

Recently lots of banks and jewelry stores in China have added gold sales services. Eily Ong, investment research manager of the WGC, thinks that the surging demand for gold in China is surely astonishing, but he thinks the trend will continue.

Although China has overtaken Indian to become the world's biggest market for gold investment in the domain of gold bars and coins, India is still recognized as the world's largest market for gold trade. Based on the quarterly report by the WGC, if jewelry consumption and other forms of personal consumption are taken into account, India's demand is still higher than China's.

In addition, as China is becoming the center for electronic components manufacturing and assembly, demand for gold in technology sectors is still on the rise.

By People's Daily Online

BRICS  Leaders Meeting 2011
Japan in  aftershocks
  Weekly review  
May 20   World Economic Forum China office marks fifth anniversary
May 18   China, Pakistan joined in bonds of brotherhood
May 20   'Central axis' of Beijing applies for world cultural heritage
May 20   In pictures: Int'l 'Financial Security' symposium opens in Beijing
May 21   The week in pictures
May 16   Beijing aims for massive influx of overseas talent in 2011
May 16   Singapore election coverage shows Western arrogance
May 16   Chinese naval helicopter conducts target practice in Gulf of Aden
May 17   Strategies for harmony between militaries of China, US
May 17   Pakistani Prime Minister hails China as true friend


  • Do you have anything to say?


Special Coverage
  • 3rd Anniversary Of Wenchuan Earthquake
  • Third China-U.S. Strategic and Economic Dialogue
Major headlines
Editor's Pick
  • Road crash kills 6, injures 11 in east China
  • Grand Rand Air Show held in Johannesburg
  • Bringing down Cannes curtain
  • Spanish Socialist party suffers crushing defeat in local and regional elections
  • Pakistanis demand for end to U.S. missile strikes
  • Colombia suffers devastating flooding
Hot Forum Dicussion