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Follow on Google News | Chinese Gold Investment Demand Rose 70% On InflationYear on year, the investment demand for gold in China increased by 70% due to limited alternative investment opportunities and domestic inflationary pressure.
By: Clair Barton China invested around $7 billion USD last year in small bars and coins, and according the WCG report gold investment in China more than doubled year on year in the last quarter of 2010. Wang Lixin, general manager at WCG noted Thursday that, “gold bars are always out of stock in China in recent months.” Domestic demand for the metal has reached all time highs, and “China’s continued inflation pressure and the government’s policies to rein in the property market are main motivators for the booming gold investment demand.” In an attempt to slow down the soaring real estate prices, the Chinese government has introduced a series of policies that increase the loan threshold and restrict housing purchases in important Chinese cities. Further, China’s consumer price index, hit a 2 year high of 5.1%, increasing concerns about inflation and the government’s inability to keep it in check indefinitely. Couple these factors with the poor performance of the Shanghai Composite Index in 2010, and gold is left as the most popular investment option. # # # About China Mineral Company: China Mineral Company Ltd. was formed in 2007 to explore unallocated tracts of land abutting the Yashan gold mine, where there was expected to be an abundance of silver. After initial surveys found not just silver, but extractable gold, the Company launched its initial round of fundraising. The company has since come to agreement with the Chinese government and was able to begin operations in the middle of 2008. End
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