chinese demand is driving gold price higher

Hi Tilly533

http://german.china.org.cn/business/txt/2012-07/12/content_25887828.htm

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Chinese demand is driving gold price higher

The demand for gold is in the private sector on the decline worldwide. In China it is still remained strong, experts said on Tuesday. This give the expected boost to the price per ounce of fine metal until the end of this year could rise to 1,800 dollars.

Because gold prices are still high and there are fears for short-term price fluctuations, the private sector currently buys less gold, said Philip Klapwijk, global head of metals analyst for the area at Thomson Reuters GFMS. "The Chinese market remains strong, however, making it an important factor to global investors have taken into account." Last year, the demand for Goldbaren for investment purposes in China was strong enough to lead to a sale of 250 tons of the precious metal, which represents an increase of at least 40 percent. Only in India with 288 tons more gold bars were sold.

In the same year, China used 496 tons of gold for making jewelry. In India, however the amount has fallen to gold, which has been acquired for that purpose. "The Chinese jewelery demand for 2012 will be as strong as the Indian," said Klapwijk. However, China will sell this year, probably more than Goldbaren India. "This means that China will end up this year, the largest consumer market for gold."

Worldwide, the amount of gold that has been acquired for investment purposes, in 2011 declined compared to last year by ten percent on 1605 tons. Even so, the amount reached in terms of their monetary value to a record high of 81 billion U.S. dollars. The main reason for the rising gold price are the low interest rates, the worsening debt crisis in Europe and concerns about rising inflation.

Also last year, 2759 tons of gold worldwide for industrial production had been sold. Compared to last year, this represents a decline of 0.9 percent, which can be attributed largely to a declining demand for jewelry. Klapwijk suggested that some governments have been buying more gold. These official purchases have a huge impact especially when the private sector is weak.

The report, published on Tuesday Klapwijik noted that a slight increase has led to the old gold mine production and more to an offer High. At the same time will demand from the industrial buyers, mainly jewelry manufacturer, predicted to fall slightly over the course of this year. External economic conditions in the coming months could also mean that more money went into the gold market. One reason why investors are looking for more gold lies in the probability that an increasing number of countries in the near future will loosen its monetary policy.

According to Klapwijk the gold market in the short term will be subject to further changes. But the price for the precious metal was to remain at around 1,500 dollars per ounce.

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berlinerbaer