China Gold Trade And Consumption Seen As Increasing Dramatically

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According to Mineweb, as more and more of a consumer society develops we would anticipate demand growing more rapidly than supply with a corresponding positive impact on the metal price.

Chinese citizens have been taking to gold as a significant investment option according to reported figures from the Shanghai Gold Exchange. Last year, for example, some 1,250 tonnes of gold were traded on the Exchange, up 38 percent on a year earlier. Figures for the current year could be substantially higher due to various new gold metal investment options which have become available, like the recently announced 100 gramme gold bars which make gold trading by individuals more accessible, rather than just by corporate entities. The previous smallest size of gold bar available was one kilogramme.

...Thus there is little doubt that China is a very significant player indeed in the future direction of the world gold price. As more and more of a consumer society develops we would anticipate demand growing more rapidly than supply with a corresponding positive impact on the metal price.

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