China’s gold rush!
February 21st, 2008 - by Nazia Vasi
The Chinese just have too much money! At a time when when world gold grices are at an all time high, China has for the first time usurped the US, as the world’s second largest market for gold jewellry. China is however yet surpassed by India - who still hold the global #1 position, according to the World Gold Council (WGC).
At a time when gold prices are already high (gold prices jumped more than 30 percent last year, the biggest increase since 1979), WGC statistics showed that sales of gold jewellry in China reached a record high of 302.2 tons in 2007, up 34% from 2006. Conversely, WCG said that in 2007 demand for gold in the U.S. saw a 14 percent year on year drop, while sales in Britain and Italy slumped too.
Interestingly, in January China’s gold futures made a strong debut on the Shanghai Futures Exchange as international gold prices repeatedly hit new highs.
Chinese demand for the metal helped boost its price in London to a record high of $936.50 an ounce in early February.
In other gold news the Shanghai Gold Exchange approved Standard Chartered and HSBC - the bourse’s first two overseas members. They are expected to start trading gold in March or latest by April said Shen Xiangrong, Chairman, Shanghai Gold Exchange. About 94,000 individual investors traded gold through the bourse last year, and the figure is expected to grow to 2,00,000 or even 3,00,000 this year, according to Xiangrong. The bourse traded 1,828.13 tons of gold last year, up 46% from the previous year. The trading value gained 63% to 316.49 billion yuan (US$44.2billion). Daily trading volume amounted to a record 7,554.26 kgs with the highest reaching 24,767kgs.
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