LINE

Text:AAAPrint
Economy

Chinese demand for gold bars and coins soars in first quarter

1
2018-10-22 09:38China Daily Editor: Feng Shuang ECNS App Download
A worker displays a gold bar at a department store in Beijing. JIANG DONG / FOR CHINA DAILY 标签:电话机 http://www.17metres.com OPUS平台现金网

A worker displays a gold bar at a department store in Beijing. JIANG DONG / FOR CHINA DAILY

China's demand for gold bars and coins soared 30 percent year-on-year to 105.9 metric tons in the first quarter of this year, the fourth strongest quarter on record, according to a report released by the World Gold Council on Thursday.

Overall demand for gold in the Chinese market grew 8 percent year-on-year to 282.4 tons, making China the world's top gold consumer, according to WGC data.

Global demand for gold in the quarter was 1,034.5 tons, an 18 percent year-on-year decrease from the record high level recorded for the first quarter of 2016.

Analysts said demand for bullion was often adjusted in alignment with the overall economic picture.

In the Chinese market, investors wishing to preserve value and hedge their risks amid market uncertainty and currency volatility have driven demand for gold, according to the WGC report.

"Investors, particularly individual investors, who wish to diversify their portfolio because of concern about the outlook for real estate and stock market, are having more interest in gold," said Roland Wang, WGC China managing director.

For a similar reason, gold ETFs in China are also getting increasingly popular among institutional investors who are re-recognizing gold as a tool for risk hedging when they are no longer focusing only on yield and allocating more resources on risk management, said Wang.

Strong demand for gold and limited growth of supply, he said, had caused an imbalance, which had led to a high premium in China over the global spot price.

That premium in the Chinese market averaged around $4 per ounce over the global spot price in recent years, but shot up to an average of $17 per ounce at the end of 2016. The WGC research found that it persisted in the first quarter this year at average of $14.2 per ounce amid limited imports and a gap between supply and demand.

China Gold Association data showed that China's output of gold in the quarter was 101.2 tons, a 9.29 percent year-on-year decline, while consumption excluding exports and investments grew 14.73 percent year-on-year to 304.1 tons.

Commercial banks, for example, have launched interest-bearing, online-tradable gold products with a minimum entry point of 1 gram, which also enables investors to withdraw physical gold through their bank networks.

"Fintech companies are also tapping into gold-backed products that reach young investors, which effectively popularizes gold-an investment conventionally believed to be a favored investment tool for senior-age investors," said a research note from Sinolink Securities Co.

The Shanghai Gold Exchange continued to gain market share, as high-net-worth individuals increasingly buy one-kilogram gold bars using the exchange's services at low margins.

The WGC said it expects China's demand for gold in 2017 to be between 900 tons and 1,000 tons. The world's second-biggest gold consumer India is expected to demand gold of 650 tons to 750 tons in 2017.

 

  

Related news

MorePhoto

Most popular in 24h

MoreTop news

MoreVideo

News
Politics
Business
Society
Culture
Military
Sci-tech
Entertainment
Sports
Odd
Features
Biz
Economy
Travel
Travel News
Travel Types
Events
Food
Hotel
Bar & Club
Architecture
Gallery
Photo
CNS Photo
Video
Video
Learning Chinese
Learn About China
Social Chinese
Business Chinese
Buzz Words
Bilingual
Resources
ECNS Wire
Special Coverage
Infographics
Voices
LINE
Back to top Links | About Us | Jobs | Contact Us | Privacy Policy
Copyright ©1999-2017 Chinanews.com. All rights reserved.
Reproduction in whole or in part without permission is prohibited.
宽塘 流村镇 杏坂 康复路北口 上海南站地铁站 曾了窝 民强街居委会 外语学院 中山二路 邵庄镇 白垭 绿波缘社区
魏家院子 陈楼村委会 鸿运汽车站 石狮市农村社保公司 永和市 亳县 广东宝安区松岗镇 雷家寨 七七街 王府站镇 裕隆回族乡 东智北村
教练场 庙沟门镇 升家村 我崽 英安镇 北龙乡 高祭下 夹河矿 前吉山村 石炭沟开发区 小梅镇 允嘉巷后王村 薄板分厂
http://www.nairjx.com.cn http://www.yovy.com.cn http://www.tlyingding.com http://www.1245teamreferral.com http://www.pujiangshuijing.com http://www.thevictorystudios.net http://www.jutaixin.com http://www.1toughsob.com http://www.123nbagame.com http://www.ajmd.cc http://www.wangpanba.com http://www.ajmd.cc