2011 Looks To Be Another Good Year For Gold And For China Mineral Company

Online, January 6, 2011 (Newswire.com) - 2010 was a great year for gold, and looking into 2011 China Mineral Company is optimistic. Gold closed the last Friday of 2010 at $1421.40 per ounce up just over 30% on the year. Gold climbed steadily throughout 2010 and many analysts predict a similar trend in 2011. With skepticism about global currencies highlighted by the uncertainty of the euro and global inflation rates, gold should continue to hold and increase its value. Focusing on the emerging economies of the world with an emphasis on China and India, Gold promises to outperform 2010 in 2011.

With inflation on the rise the Chinese have become even more infatuated with the commodity than they were in recent history. Between October of 2009 and September of 2010, the retail demand for gold jumped by 70% in China to over 153 tons year over year. Over the same period the demand for gold jewelry climbed by only 8%, signaling a Chinese emphasis on gold as an investment rather than as a luxury item.

China's recent emphasis on gold is even threatening India as the world's predominant consumer of gold. 2010 figures estimate that China is only narrowly trailing India in consumption of gold, but collectively they both promise to continue to consume the precious metal at an astonishing rate.

For mines throughout China and other part of the world this is great news. China Mineral Company in the Gansu Province of China is looking optimistically into 2011 with intentions of expanding its production. With plans to further develop their milling facilities throughout 2011, CMC plans to steadily ramp up their production throughout 2011. VP of Operations Zhao Xiaofeng believes that 2011 will be a turning point for the company:

"We have been relatively successful up to this point, but because of the current state of the gold market combined with our stage of development, we are poised to have an unprecedented year."

CMC analyst Clark Paulson agreed with Xiaofeng: "Gold is trading at all time highs, but given the state of currencies around the world and inflation rates, I see a continuation in the upward trend... as long as we are pulling gold out of the ground and refining it we will be profitable - I don't see that changing in the foreseeable future."

Overall gold will continue to be a great investment in the coming months and years. Whether investing in mining, ETFs, or bullion 2011 should continue to yield solid returns for investors.