China to Consume 40% of Global Gold Production


". . .physical demand for gold has been going through the roof."

The economic fundamentals for gold are favorable. Production of gold from South Africa, United States, Australia and Canada, has dwindled every year over this past decade.

These countries, which combined to produce two thirds of the global gold through the 1980s, now produce less than half of the gold mined today. In 2006, South Africa, the world's largest producer of gold, hit its lowest production level of gold in 84 years.

Meanwhile, physical demand for gold has been going through the roof. Much of the recent explosion in demand can be attributed to retail investors in India, China and other parts of Asia where the appetite for gold as investments is soaring.

India, for example, is experiencing an 80% growth in gold investment following a loosening of trade and market restrictions.

And let's not forget China.

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe