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

Gold Demand Surges in China as Production Sags

  by    0   0

The Chinese are buying gold again after a slump in consumer demand last year.

Meanwhile, Chinese gold production is falling.

According to data released by the China Gold Association, gold demand rose 15.5% through the first three quarters of 2017. Demand totaled 815.9 tons, pushed upward by a resurgent jewelry market.

Demand figures released by the association include jewelry, bullion, and industrial gold, but exclude central bank purchases.

China Gold Association chairman Zhang Yongtao told the South China Morning News there are good signs that jewelry demand has returned to a growth track after a sluggish 2016. The data backs him up. Gold jewelry sales increased 7.4% to 503.9 tons through the first three quarters of this year. That compares with a 20% slump in sales during the same period last year.

The momentum is partly due to recovering prices since the beginning of the year, and more young consumers tying the knot, particularly in China’s smaller cities, which boosted demand for wedding jewelry.”

Investment gold demand jumped even higher by percentage, surging 44.5% to 222 tons. Investors flocked to gold as the Chinese government maintained its curb on property investments and kept a tight leash on capital remittances.

China ranks as the worlds leading consumer of gold and plays an important role in the world gold market. According to the World Gold Council Q2 2017 data, China accounts for about 28.6% of global jewelry demand, and 26% of the worlds bar and coin demand. The Chinese central bank owns the fifth largest gold reserves in the world. Analysts say consumer gold demand may top 1,000 tons this year.

As demand increases, gold production is dropping off in China. Chinese mine output fell 10% through the first three quarters of 2017, according to the China Gold Association. Chinese gold production came in at 313 tons through Q3. Analysts say an ongoing drive for raising environmental protection standards curtailed output in Shandong, Jiangxi and Fujian provinces. China is the world’s leading gold producer.

These basic supply and demand dynamics tend to get lost in media hype about Federal Reserve policy and the latest political maneuvering in Washington D.C. It’s important to keep these fundamentals in mind, even as the chattering in the news cycle drives short-term prices.

scam-2-sm

Get Peter Schiff’s latest gold market analysis – click here for a free subscription to his exclusive monthly Gold Videocast.
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

Romania a Step Closer to Repatriating Its Gold Reserves

gold barsRomania moved another step closer to bringing all of its gold home this week. According to Romanian news outlets, the Chamber of Deputies Budget and Finance Committee released a favorable report on legislation that would require the country’s central bank to repatriate its gold and hold it within the borders of the country. Related

READ MORE →

China’s Keynesian Experiment

While President Trump nags the Federal Reserve to reinstitute Obama-era monetary stimulus, China has already taken off down that path. And it actually has some people in the mainstream concerned. According to a Reuters report, the Organisation for Economic Cooperation and Development (OECD) is warning that while Chinese government stimulus may boost the country’s economy […]

READ MORE →

European ETF Gold Holdings Hit Record Level

The amount of gold held by Europe-based ETFs hit a record high in the first quarter of 2019, according to a report by the World Gold Council. European funds now hold 1,121.4 tons of gold. The WGC pinpoints three primary drivers of European gold investment. Related

READ MORE →

Production Plunges for World’s Largest Silver Miner in Q1

The world’s largest primary silver producer reported a plunge in production in the first quarter of the year, continuing a global trend of declining silver output. Total silver production at Fresnillo PLC dropped by 15% in Q1. The company blamed falling mine output on lower ore grades and reduced volume of processed ore. Related

READ MORE →

Silver Demand Hit 3-Year High in 2018 as Supply Fell

Silver demand was up 4% and hit a three-year high in 2018, according to the 2019 World Silver Survey released by the Silver Institute this week. Physical demand for silver came in at over 1 billion ounces last year. Meanwhile, silver mine production fell for the third straight year, dropping 2% in 2018 to 855.7 […]

READ MORE →

Comments are closed.

Call Now