According to the WGT report for 2010, total gold demand doubled the one in the previous year, 40% of the relevant gold demand coming from China and India together. According to the same report, China and not India is now the most eager gold purchaser worldwide, both as regards investing in gold and buying gold accessories. In addition, it is China again which has the largest gold reserves in the world, in value of more than 1 trillion dollars so far.
But it seems it can do 'better' even than that, as showed by gold developments there this ended quarter. The general fears of inflation, based on the country increasing its interest rates four times from October, pushed investors to new highs. By 70% more gold jewelry had been bought by comparison with last year, and a standard gold outlet would see 40 clients a day buying several kilos of gold bars each, at a time. In these conditions, the largest Chinese bank sold 7 tons of physical gold just in January, while it sold twice as much during the whole 2010.
In addition, it sells gold bars directly to investors that have the choice of reselling them to the bank any time, at current gold rates. Just this product will make gold retail investment to increase by up to 15% this year. And physical gold is not the only one with appeal to investors. The Chinese bought gold-price-linked term deposits in value of 1 billion Yuan, just in several days this January.
Of course, the Chinese have resources to consume, being the biggest gold bullion producer in the world, since overtaking South Africa in 2007. The biggest mining company in the country means to push its annual capacity up to 50 tons in five years, with almost half of its output to be produced abroad. This year it might produce 32 tons of gold, but keep in mind that its deposits are to reach 1,300 tons this same year, while some five years ago they were a 'meager' 275 tons.
And, although the national gold production is nothing short of amazing (340 tons mined just last year), China had managed to import 209 tons of gold during the first 10 months of 2010, becoming for the first time in its history a significant gold importer worldwide. All these figures show that it can, after all, afford to be the largest gold consumer internationally. How to buy gold seems less important when there is plenty of gold around to purchase.
But it seems it can do 'better' even than that, as showed by gold developments there this ended quarter. The general fears of inflation, based on the country increasing its interest rates four times from October, pushed investors to new highs. By 70% more gold jewelry had been bought by comparison with last year, and a standard gold outlet would see 40 clients a day buying several kilos of gold bars each, at a time. In these conditions, the largest Chinese bank sold 7 tons of physical gold just in January, while it sold twice as much during the whole 2010.
In addition, it sells gold bars directly to investors that have the choice of reselling them to the bank any time, at current gold rates. Just this product will make gold retail investment to increase by up to 15% this year. And physical gold is not the only one with appeal to investors. The Chinese bought gold-price-linked term deposits in value of 1 billion Yuan, just in several days this January.
Of course, the Chinese have resources to consume, being the biggest gold bullion producer in the world, since overtaking South Africa in 2007. The biggest mining company in the country means to push its annual capacity up to 50 tons in five years, with almost half of its output to be produced abroad. This year it might produce 32 tons of gold, but keep in mind that its deposits are to reach 1,300 tons this same year, while some five years ago they were a 'meager' 275 tons.
And, although the national gold production is nothing short of amazing (340 tons mined just last year), China had managed to import 209 tons of gold during the first 10 months of 2010, becoming for the first time in its history a significant gold importer worldwide. All these figures show that it can, after all, afford to be the largest gold consumer internationally. How to buy gold seems less important when there is plenty of gold around to purchase.
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