Tsuen Wan International: Gold prices expected to remain high through year end.

May 27, 2011 - PRLog -- China National Gold Group Corporation has told Tsuen Wan International that the gold price may remain at high levels in coming months as factors including faster inflation, geopolitical crisis and the slowing global economic recovery weigh in on investor sentiment.

China’s gold demand is forecast to exceed 700 metric tons in the next several years and will drastically outpace domestic production. Annual gold production in China, the world’s second largest consumer of precious metals, is anticipated to reach 400 tonnes by 2014 with demand at 700 tonnes, indicating room for a strong increase in imports, said CNGGC.

Gold demand for the country climbed 32% despite a concurrent 25% increase in the annual average local currency gold price. For the first quarter of 2011, China’s investment demand more than double to 90.9 tons compared to India’s 85.6 tons. India is the biggest consumer of gold and silver in the world.


China’s gold demand was being driven by its population's cultural affinity to the metal and monetary tightening fears, the CNGGC told Tsuen Wan International. China's central bank's positive view on gold has also increased demand for the metal.

Gold has recorded annual gains for every year for the last 11. The ongoing Eurozone debt crisis, rising inflation in emerging markets and the weak U.S. currency have all added gains to gold in the past 12 months.

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Tsuen Wan International is a leading independent investment company, based in the heart of Hong Kong. Tsuen Wan International offers a variety of investment products for institutional, corporate and high net worth investors in equity debt and FX markets.