China world’s top buyer of gold
China world’s top buyer of gold.
China has now overtaken Indian gold buyers as the world’s largest buyers of gold metal.
India makes up 23 % of gold investment demand, while China now makes up 25% of gold investment demand…
According to Bloomberg, investment demand has grown about 14 percent every single year since the market became deregulated in 2001.
The demand for jewelry has more than doubled in the past seven years from 224.1 tons in 2004 to 451.8 tons in 2010. In the first quarter, China and India contributed 63 percent of gold jewelry demand in the entire world.
We all know that gold is the new love-child of the investing world. As fiat currency become less stable due to excessive government debt and places like China and India accumulating wealth at break neck speeds, gold seems to have perpetual buoyancy. The above article gives a very nice summary of where a large part of gold demand is coming from. China and India combined make up for nearly half of global demand for gold.
Because the Chinese stock market is highly volatile, housing prices are sky high, and inflation is a constant worry, the Chinese population is flocking to gold. Not to mention the shiny metal has long had cultural significance to Chinese people.
NeilS — As news headlines about the U.S. debt crisis continue to abound, many of us are left wondering what options we have regarding investment tools. I thought it fitting to expose some valid information about gold before you yank all your money out of the stock market and flock into the metal. Experts agree that gold has very few technical uses in the world, and its value is mostly derived from its historical significance, rarity, and our emotional attachment to it. Regardless of the reasons, gold has seen an undeniable boom over the last few years and its future price action through the glut of world crises should be intriguing to follow.
We all know that market price is a factor of both supply and demand. If India and China are such a huge percentage of world gold demand, it stands to reason that if that demand drys up, gold prices could fall. With both countries facing the challenges that accompany rapid growth and modernization, it will be interesting to see what happens to gold if either country falls into a recession.