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Premier-eFinance: China’s gold production expected to climb more than 10%.
With demand for gold in China expected to increase to over 25% of total global production the world’s biggest producer is also aiming to build up a huge domestic stockpile of the yellow metal.
In June alone, the country produced 32.39 tonnes of gold, according to information provided by the ministry. The combined output value of Chinese gold producers totaled $18.55 billion during the first half, up 23.37% from a year ago period.
Moreover, the gold producers' first half profits jumped 34.19% year on year. China is the globe’s largest gold producer, and has increased production every year since 2004. In 2010, output reached 340.880 tonnes, up 8.6% from 2009.
In a recent report on the Chinese gold market, available to Premier-eFinance, J P Morgan said the China Gold Association anticipates that Chinese gold investment demand will double within the next 48 months.
"Going forward, we believe the widening structural deficit in the supply and demand picture, long term demand for gold jewelry in China, India and other developing countries, persistent concerns regarding inflation, as well as the less transparent factor of sovereign purchases (that is likely to skew demand to the upside), will continue to give long term support to gold prices,'' the note said.
In 2007, China over took South Africa as the world’s largest gold producing country.
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