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Gold Investment demand triples in China in 2008

The World Gold Council (WGC) revealed today (February 19th) that demand for Gold Investment in China nearly tripled over the course of 2008 and is set to rise further.

According to the body, investment demand for the yellow metal increased from 25.6 tonnes to 68.9 tonnes as people continued to fret over the state of the economy.

Furthermore, the statistics revealed that 395.6 tonnes of Gold Bullion were consumed in the country last year, a figure which is up from 327.8 tonnes in 2007 and also represents 14 percent of global demand.

Albert Cheng, Far East managing director for the WGC, told Reuters: "Going forward, investment demand will remain robust in China because people are looking for an investment tool that they easily understand.

"It's a very good hedge against volatility in the financial markets."

Gold prices have risen by around 12 percent already this year and could yet tip the $1,000 per ounce mark in the near future, much to the delight of those with an investment in the metal.

In the report announcing the figures, the WGC commented: "The investment motive to buy gold in the region remains strong."

China is the second-largest producer of gold in the world.

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