Gold News

China Households "Will Keep Buying Gold"

CHINA'S RAPID demand to Buy Gold will continue to grow in the years ahead, according to a senior industry figure in the world's No.2 consumer market.

Du Haiqing, deputy general manager of China National Gold Group Corp, told the China Mining Congress in Tianjin last week that "The demand for gold will keep growing in the future because of its inflation-proof, value-added functions."

Latest data from market-development group the World Gold Council showed private Chinese gold buying rising 18% in the third quarter from the same period last year.

The world's fastest-growing economy now accounts for 16% of global gold demand, with Gold Investment purchases of coins and bars rising by almost a third between July and Oct. from Q3 2009.

"China is the largest mineral producer and consumer in the world, yet it has no decisive say in major mineral pricing," said Xiong Weiping, president of Aluminum Corp. of China, at the same conference, also quoted by the People's Daily.

"Chinese suppliers and consumers are key players in the global market," countered Paulo De Sa, manager of the World Bank's Oil, Gas & Mining Policy Division.

"It is understandable for the Chinese government to control exports of minerals such as rare earth, because of sustainable development and environmental protection concerns."

Paul Wright, president and CEO of Eldorado Gold Corp., told the conference that "China is the largest producer and consumer of gold in the world, but ranks only seventh in reserves."

Citing three Gold Mining joint ventures with Chinese partners, "We need to stress that we couldn't be this successful without the support of the Chinese government and the local community," he said.

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