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Gold-loving China 'could leapfrog US'

Precious metals researcher GFMS has claimed that world gold demand will be dealt a big boost by the surging power of Chinese thirst for the metal.

The Asian giant is likely to leapfrog the US and stage a 20 per cent rise in its gold demand this year, on the strength of rising personal incomes in China, GFMS affirmed.

The Asian hunger to buy gold has been spearheaded by India, the world's largest market for the metal, but with bullion prices reaching new 28 year highs this autumn, new demand from China could see the gold price rising still further.

Philip Klapwijk, executive chairman of GFMS, heralded the huge growth of gold demand in the growing Chinese economy, in telephone comments from Parati, Brazil.

"China is poised to become the world's second largest jewelry market for gold this year, overtaking the United States and coming in number two behind India, I would expect it to grow further [in 2008]" he said.

Gold is often identified as a rare object in its ability to transcend cultural divides and appeal not only to stock markets – speculating on its monetary value – but also to gift-givers and luxury lovers in cultures as diverse as China, India and the US.


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