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The recent downturn in gold prices have caused a steep uptick in physical demand of gold from China and India which account for more than half of global gold demand.

25 Jun 2013

LONDON (Commodity Online): China may be importing 2000 tons of gold by the time it is 2016 which would roughly be equal to 80% of the total global gold mine supply, said Standard Chartered in a report cited by Bloomberg News, noting that such a feat is not something 'inconceivable'.

“Although it is the world’s largest producer of gold, 40 percent of its production uses imported gold in concentrates,” Standard Chartered noted.

Meanwhile gold output by China may jump 10% to 440 tons this year, China's mining association said last week.

This development is in sharp contrast to India: the nation mined miniscule amounts of gold in 2013 YTD and has,unlike China placed curbs on gold imports. China has approved of a set of domestic ETPs in gold this month even as India has raised import duties on gold to 8%.

This may eventually lead China to surpass India in bullion consumption, China Gold Association said last week.

"We saw some frenzied buying following gold's rout in April and our preliminary estimate confirms that consumption reached about 137 tonnes, more than double a typical month," Zhang Yongtao, the association's vice-chairman, said to Bloomberg in a separate report.

"Chinese demand for gold will remain robust because people are getting wealthier and investment choices are limited,” he noted.

The recent downturn in gold prices have caused a steep uptick in physical demand of gold from China and India which account for more than half of global gold demand.

Besides, China considers gold to be having strategic value and as per some reports, is hiding gold amonst the populace in a bid to improve the economic resilience of the nation.


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COMMENTS (1)
John davis
28 Jun 2013
You are assisting the banksters in washing out the weak hands with this article of no basis. Plainly put you are a shill as central banks aquire. None of the fundementals have changed as they flood the economy with useless fiat.
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