Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in

Chinese gold production continues to increase

IMG Auteur
 
Published : October 18th, 2011
516 words - Reading time : 1 - 2 minutes
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
Category : GoldWire

 

 

 

 

China's gold production continues to increase and reached 226,388 metric tons in the first eight months of this year. This corresponds with an increase of 3.87% compared with the same period last year, as China's Ministry of Industry and Information Technology announced yesterday. In the last decade China has become the world’s largest gold producer, and observers expect the country to surpass India as the world's largest gold consumer soon.

In August alone, China produced 31.89 metric tons of gold. The total value of gold produced by China's mining companies reached $26.55 billion in the first eight months of this year. This corresponds with an increase of 23.14% compared with the same period last year. China's total gold output set new records in 2010 by reaching 340.88 metric tons. Observers expect China's domestic gold producers to surpass this level by the end of this year.

However, India is still the world's largest importer and consumer of gold. Despite rapidly rising gold prices, India accounted for more than a third of global gold demand in the first half of this year. Gold sales by Indian traders rose 21% year-on-year. Indians bought a total of 540 metric tons of gold in the first six months of 2011, with the country's gold demand rising by 38% in the second quarter. China's gold demand picked up by 25% during the same period. Experts and gold traders expect India's festival season – kicked-off by the Diwali festival of lights this month – to set new sales records this year. Silver sales are expected to rise by around 30% compared with the previous year.

Despite India's rapidly rising appetite for gold, China could surpass India's physical gold demand by the end of this year, as Goldcorp CEO Chuck Jeannes noted in late July. High inflation in China is probably one of the main reasons for the rising appetite for precious metals among domestic investors. Inflation reached 6.1% in September, slightly down from 6.2% in August, though food inflation jumped to 13.4%. Despite the slight decline (0.1%) in the country's inflation rate in September, this figure remains well above the official inflation target of 4%.

China's domestic investors view commodities and other tangible assets as a means of protecting their wealth and savings from the ravages of inflation. This primarily includes purchases of gold and silver in the form of jewellery, coins or bars. China's investment demand for these metals more than doubled to 90.9 metric tons in the first quarter of 2011. In the wake of this rapidly rising gold demand, China has become the world's largest market for coins and bullion bars – beating India for the first time ever, according to a World Gold Council report from May. However, India remains the largest global gold jewelry consumer. Though many analysts continue to predict a fall-off in Asian demand owing to higher and higher gold and silver prices, economic problems all over the world – an concerns over currency debasement – are continuing to drive more and more Asian into buying gold and silver.



Roman Baudzus

Originally published on Goldmoney.com here

 

 

Companies Mentionned : China Gold | Goldcorp | Metals X |
Data and Statistics for these countries : China | India | All
Gold and Silver Prices for these countries : China | India | All
<< Previous article
Rate :Average :0 (0 vote)
>> Next article
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Marine Le Pen Soars Into Lead in...
14:36user47791
Some of the polled people must be voting for 2 presidents: the combined votes total at least 134%.
Greece's Debt: Guess Who Pays in...
28 Janbelville19071
I have read better analysis from Adrian: Greece is in an extremely strong position and the EC has to give in. If Greece leaves and defaults on its ...
Koos Jansen: India's silver expo...
26 JanDoom
Heh, the title doesn't match the subject. I would have been shocked if India was really exporting silver, much less exporting a record.
Education is Too Important Not t...
26 Jansam_site1
Right on Ron. Americans don't understand that we have been fed a distorted version of history taught in our schools. The constant attempts by cri...
Job Site of the Future: Unmanned...
26 Janrhaacke
All this fear of automation taking over jobs is completely unfounded. It will never be possible for machines to make everyone unemployed. If everyo...
Jim Rickards: Gold price manipul...
26 Janstustev1
Jim, If the intent of the manipulation is to get more gold into China and it is imperative to accomplish this forthwith then why do not the wor...
Dollar Denial Ain't Just a River
24 Janovertheedge
"It all comes back to preparing for the worst, and letting the best take care of itself. Easy to say - hard to implement. " "Therefore, we...
Housing Affordability: How Does ...
23 JanThautikus4
Mish, As a Canadian follower of your excellent commentary I will answer in regard to the Canadian Real Estate bubble which crested in 2013-2014 and...
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS
Comments closed
Subscribe to 24hGold’s daily market briefing
  • Prices and data of precious metals in 119 currencies and world mining companies
  • Daily analysis of the economy, markets and more
  • Free, daily and indispensable
Stay informed, subscribe now !
* Your email will never be shared.