Thursday, 3rd March 2005 (3335 views)

Demand for gold in the Chinese mainland is on the increase, with demand rising by 12.8 per cent last year.

According to figures from the World Gold Council, the demand for the precious metal reached 234 tonnes in the mainland.

"Gold demand in the mainland is expected to maintain such a growth momentum in 2005 as a result of China's steady economic growth and bullish gold prices," said Albert Cheng, managing director of the WGC's Far East operation.

In addition, demand for gold jewellery in the area increased by 11.5 per cent year-on-year, according to China Daily.

"The K-gold (Italian-inspired 18-carat gold) campaign initiated by the WGC last year has been a successful attempt to tap into the young consumer market in China, and it also gave us a strong indication that stylish designs are the key buoyant gold jewellery sales," Mr Cheng said.

It is thought the gold jewellery rush will also continue in 2005, with 2004 demand for 17 carat gold jewellery increasing by seven per cent, and rising by ten per cent for 24 carat items.

The council plans to provide more resources to help support the gold jewellery sector in the region, is looking to expand its campaign to more cities and hopes gold demand as a retail investment will be a breakthrough in 2005.

 

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