Chinese Demand For Gold To Rise Say Minato International
Minato International, Gold's appeal to the Chinese will see demand in the country rise by around 20% by 2017 as consumers become wealthier.
Online, June 19, 2014 (Newswire.com) - Minato International - The World Gold Council has announced that it expects demand for gold in China to rise by around 20% by 2017 as consumers in the world's most populous country become wealthier.
Although China is the world's largest producer of gold, it is also the world's largest consumer of the metal and, as such, all the production within the country remains inside its borders and none is exported. Indeed, such is the demand for the metal that China imports a significant percentage of its consumption through Hong Kong.
"China might be facing something of a tail-off in terms of economic growth for the time being but there is little doubt that the future is bright certainly in terms of the growing affluence of its middle classes who still regard gold as the ultimate store of wealth regardless of what its detractors in the West may say," said an Minato International metals analyst.
According to statistics, Chinese consumers bought 1,132 tonnes of gold last year both in jewelry form and in coins and bars for investment purposes.
The World Gold Council says it expects this demand to reach 1,350 tonnes within the next 3 years.
Nevertheless, gold had its worst year in 2013 when it ended down by as much as 28% on the year. It has staged an impressive recovery but growing concerns over the future of ultra-easy monetary policy at the US Federal Reserve have recently applied a brake to price gains.
"Our forecast is that gold will end the year at around the $1400 mark," concluded the Minato International analyst.
"China might be facing something of a tail-off in terms of economic growth for the time being but there is little doubt that the future is bright certainly in terms of the growing affluence of its middle classes who still regard gold as the ultimate store of wealth regardless of what its detractors in the West may say," said an Minato International metals analyst.