IN CONTRAST to China’s apparent mistrust of gold, widely reported Wednesday following an official statement, private consumers Buying Gold in China continue to grow their demand to record levels.
Retail Gold Investment and jewelry demand in China rose by 57% in the first quarter of 2010 from the same period a year ago. Research has shown Chinese consumers Buying Gold at a faster rate year-on-year for more than ten years.
Mineweb.com reports that the country clearly expects a strong future for precious metals. As a country, China is Buying Gold mostly from internal Gold Mining sources. The Chinese government grew its gold reserves to 1,054 tonnes by the end of 2009. But the Chinese state is not the only one to Buy Gold. Household buyers have accumulated over twice as much as the state over the past ten years, having accumulated over 2,700 tonnes from the year 2000.
China's State Administration of Foreign Exchange reportedly said that "The gold market is too small, illiquid and volatile to be considered suitable for asset allocation." But, the Chinese administration's attempt to downplay the role of gold should be seen in the context of the fact that the country has nearly doubled its gold holdings over the past seven years.
China will "carefully consider" whether to raise or reduce the amount of gold it has, said the SAFE regulator to Bloomberg.
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