Wednesday, 3rd August 2005 (3423 views)

China's gold and jewellery consumption is tipped to expand according to the latest ministry of commerce report on market supply and demand.

Demand looks set to increase as those with money to expend, born between 1960 and 1980, display a penchant for all things gold.

Retail figures showed a 13.9 per cent increase in gold, silver and jewellery sales in addition to the expectations of 25 per cent of survey respondents who believe that gold ornaments will continue to increase in price.

In the past China has proved susceptible to trends for goods such as cars so the newfound enthusiasm for gold could progress in a similar way with China’s gold sales volume for 2004 already fourth highest in the world.

"China, another main buyer whose consumption may eventually match India's, is likely to see demand rising by ten per cent this year as the country liberalises its bullion market," the Gulf Daily News predicted.

As gold sales reach a busy time of year, with the Indian wedding season, gold's growing popularity in China could well see demand soar in addition to the predicted higher gold prices due to the revaluation of the yuan against the falling dollar.

 

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