Contact us
CALL US NOW 1-888-GOLD-160
(1-888-465-3160)

Analysts Expect Strong Gold Demand in China to Continue in 2019

  by    0   1

Analysts expect continued strong investment demand for gold in China this year.

According to Xinhua News, gold as an investment will likely “glitter” in 2019 and gold jewelry sales are expected to get a boost in the Chinese lunar Year of the Pig. It also appears the People’s Bank of China is on a buying spree.

China ranks as the world’s top gold consumer.

Song Xin, chairman of the China Gold Association, told Xinhua News that there has been an uptrend in gold investment as a safe haven to avoid increasing risk in other sectors.

 More and more investors and individuals prefer to hold gold, leading to the dramatic increase in demand for gold bars.”

According to the World Gold Council, the demand for gold bars and coins in China came in at a “robust” 304 tons in 2018. Overall, global demand for gold was up about 4% in 2018.

The Chinese Central Bank officially added 10 tons of gold to its reserves in December. It was the first official increase in China’s gold reserves since 2016. It followed up by adding another 11.8 tons in January, bringing its official gold holdings to 1,864 tons.

Meanwhile, Chinese holdings of US Treasuries dropped for the fifth straight month in December, sinking to the lowest level since May 2017.  Over the past year, the Chinese have shed $50 billion in US debt. Japanese economist Yusuke Miura told the Asian Review that China “probably wants to reduce its dependence on dollar-denominated securities in its foreign-currency reserves.”

As far as gold jewelry goes, analysts at Metals Focus said anecdotal evidence points to strong demand in China during the recent week-long Lunar New Year celebration. With the strong New Year’s demand, the British precious metals research firm reiterated its forecast for Chinese jewelry demand to rise by about 3% in 2019. This follows a 3% demand increase in 2018.

World Gold Council managing director Wang Lixin told Xinhua News that physical gold investment demand, demand for gold jewelry and an increase in gold reserves by the Chinese central bank were the three highlights of the Chinese gold market in 2018.

This re-emphasizes gold’s unique role as a risk hedge within investment portfolios.”

TaxFreeGold.Banner.1000x285

Get Peter Schiff’s most important Gold headlines once per week – click here – for a free subscription to his exclusive weekly email updates.
Interested in learning how to buy gold and buy silver?
Call 1-888-GOLD-160 and speak with a Precious Metals Specialist today!


Related Posts

Feds Run Second-Biggest Budget Deficit in History; Spending Up from 2020 Record

The federal budget deficit for fiscal 2021 came in at $2.77 trillion. It was the second-largest deficit in US history, just behind last year’s $3.13 trillion shortfall. Despite falling shy of the deficit record, Uncle Sam spent even more money in 2021 than it did during the depths of the 2020 coronavirus recession.

READ MORE →

Stagflation Warning: Atlanta Fed GDP Estimate at 0.5%

As governments shut down the economy in response to COVID-19 and the Federal Reserve put money printing into hyperdrive, we warned that it was a recipe for stagflation. Today, it looks like stagnation is here. Stagflation is an economic environment with rapidly rising prices, a weak labor market, and low GDP growth. It’s looking more […]

READ MORE →

Chinese Gold Demand Continues to Strengthen

Gold demand in China was up in September, as the country approaches a peak gold-buying season. Both gold withdrawals from the Shanghai Gold Exchange (SGE) in September and gold imports in August were up, a sign that the Chinese gold market continues to recover after it was hit hard by the coronavirus pandemic.

READ MORE →

JP Morgan Chase CEO Worried About Higher Than Expected Inflation

With CPI data once again coming in hotter than expected, it’s getting harder and harder for the mainstream to swallow the “transitory inflation” narrative. And some people are starting to worry. During an earnings call, JPMorgan Chase CEO Jamie Dimon expressed concerns about higher than expected and persistent inflation ahead.

READ MORE →

American Consumers Continue to Run up Credit Card Debt

Consumer borrowing has slowed somewhat from the record level we saw in June, but Americans continue to pile on the debt. Consumer debt grew by $14.4 billion in August to $4.35 trillion, according to the latest data from the Federal Reserve. That represents a 4% increase. This follows on the heels of a 4.8% increase in […]

READ MORE →

Comments are closed.

Call Now