China demand for Gold is
increasing
China the largest producer of Gold has
outweighed India
to be the top global consumer of Gold in 2013. Also, according to
the World Gold Council ( WGC) the consumer demand for Gold will
increase up to 20 % by 2017.
There
are some factors which pushed the Gold to increase and the most important are
the following:
1/
China consumption of Gold
rose to 1,066 tones in 2013, exceeding India demand; Chinese
purchases of Gold increased including ( jewelry , gold bullion and coins)
for investment as Chinese wealthy population are growing and
the income net has climbed. The growing demand for the yellow
metal in China has
pushed the Gold prices to rise further.
2/
The Gold is also related to the US Dollar, which is considered as the world's
reserve currency, and as much as the US Dollar rises, the Gold prices edged
down. While if the US Dollar is down, this will support the recovery of
the Gold.
3/
In addition, the geopolitical tensions between Russia
and Ukraine
have increased the demand of the precious metals, especially the yellow
metal as a safe haven asset.
Also the
rising demand of the Gold is related to additional factors such as the
investors appetite for stocks and other riskier assets, and if the Gold
prices drop sharply turning away the investors from safe
haven investment.
In
recent years, the yellow metal demand is increasing year over year in China, India
and USA.
But the Chinese market remains strong, which makes it an important factor that global
investors have to focus on.
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