Tsuen Wan International: China’s bullion investments expected to slow down in 2011.

July 13, 2011 - PRLog -- Tsuen Wan International has learned from a senior officer with the China National Gold Group Corp, that the country's bullion consumption rose to 141.9 tons in 2010, a 94% increase from the 2009, as the realty market and stock market turned bearish.

"Bullion investments will not maintain their high growth rate as in 2010 because the gold price hit a record high and investors will try to avoid risks to slow the investment pace," Song Quanli said.

Gold prices may drop back to $1,450 a troy ounce in the next three months because of the risk of a major sell-off of bullion when the economic backdrop for investment sours according to a recent report from the World Gold Council (WGC).

"We expect to see gold decisively break through $1,600 per troy ounce by the end of this year despite a short-term price retrace because we expect investment demand for Gold to remain positive as real interest rates stay low in the leading economies," Cameron Alexander, senior metals analyst with GFMS Ltd Told Tsuen Wan International from the London-based metals consultancy.


The WGC report went on to indicate that fabrication demand should to edge higher in 2011 and growth in jewelry demand will remain strong, mainly coming from China and India.

Gold prices hit a record high recently at $1,549 a troy ounce, for August delivery, on the New York Mercantile Exchange as concerns about Italy's ability to repay its debt roiled markets.

China, the world's biggest gold producer and second-largest gold consumer, is expected to report higher output this year, with the country's gold output surpassing 350 tons in 2010.

The nation's gold output in 2010 increased 8% year on year to 351 tons, while the global gold output increased 3.8% to 2,689 tons year on year

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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.