6 Facts About China’s Love Affair With Gold (GLD)

by Business Insider | April 15, 2014 9:09 am

After a horrific 2013[1], gold has been among the best-performing commodities of the year.

For the most part, Wall Street commodities analysts remain firmly bearish[2] on the yellow metal in the near term.

However, no one can ignore the economic rise of China, where the consumers’ hunger for gold is only becoming increasingly voracious.

“The next six years are expected to see China’s middle class grow by over 60%, or 200m people, to a total of 500 million,” write the analysts at the World Gold Council[3]. “Comparing this to the total population of the US, which stands at 319m, puts the size of this new market of affluent consumers, with the propensity to buy gold, in perspective. In addition to these newly emerging middle classes, rising real incomes, a deepening pool of private savings and rapid urbanisation across China suggest that the outlook for gold jewellery and investment demand in the next four years will remain strong.”

The WGC just published massive amounts of research on the supply and demand dynamics of gold in China.

Here are six key facts that they highlight (verbatim):

See Also:

  1. horrific 2013: http://www.businessinsider.com/chart-year-to-date-returns-2014-4?utm_source=investorplace&utm_medium=referral
  2. remain firmly bearish: http://www.businessinsider.com/morgan-stanley-gold-bear-market-to-resume-2014-4?utm_source=investorplace&utm_medium=referral
  3. write the analysts at the World Gold Council: http://www.gold.org/supply-and-demand/china-report
  4. CHINESE EXPORTS UNEXPECTEDLY TUMBLE: http://www.businessinsider.com/march-chinese-exports-2014-4?utm_source=investorplace&utm_medium=referral
  5. Chinese Shark Fin Imports Collapse, And That Means One Government Is Working Very Well: http://www.businessinsider.com/chinese-shark-fin-consumption-is-plummeting-2014-4?utm_source=investorplace&utm_medium=referral
  6. MORGAN STANLEY: The Gold Bear Market Is Set To Resume: http://www.businessinsider.com/morgan-stanley-gold-bear-market-to-resume-2014-4?utm_source=investorplace&utm_medium=referral

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