Gold Demand In China Will Rise 25 Percent Over Next Four Years
[heading]Gold Demand In China Will Rise 25 Percent Over Next Four Years[/heading]
Everyone has heard the murmurs regarding increased gold demand. Most people think that those buying gold are a bit crazy. In the US, just a small chunk of the population – less than 1% probably – have bought gold.
In China, the story is must different.
China, a stalwart of worldwide gold demand in recent years, seems set to continue this trend. Chinese gold buying will rise 25 percent through 2017, according to the World Gold Council. The reason? The population there is growing wealthier. Consumer demand will expand to at least 1,350 metric tons by 2017, the London-based council said in a report recently. In 2013, China accounted for 28 percent of global purchases.
Low prices in 2013 only led to more buying. In 2013, in fact, more gold was bought than in any other year since 1981, as China became the number one buyer of gold, passing India, where import restrictions hurt demand.
There are also thought to be about 1,000 tons of gold tied up in financing deals in China, where commodities like copper and gold, as well as others, are used as collateral for credit amid restrictions it has put on lending.
China’s consumer gold demand rose 32% in 2013. Jewelry purchases of about 669 tons made up 40% of the global total. This is expected to reach 780 tons by 2017. Annual bar and coin demand might reach 500 tons by 2017, 25 percent above last year’s record.
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