- While China's jewelry demand fell in 2016, physical investment weakened only "a modest amount" from 2015, and ETF holdings surged, albeit from "a very low base";
- Volumes in the Shanghai Gold Exchange's main contract dropped by one-third, but the rolling futures contract grew more than 60%. Off-exchange products offered by local banks also proved "popular", again showing a rise in institutional gold investment;
- High-net-worth investors got busy too, raising the average size of gold investment bars sold in China from the previously "dominant" 10 gram, 20g and 50g units towards the 1 kilo bars traded on the SGE.
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Adrian Ash is director of research at BullionVault, the physical gold and silver market for private investors online. Formerly head of editorial at London's top publisher of private-investment advice, he was City correspondent for The Daily Reckoning from 2003 to 2008, and is now a regular contributor to many leading analysis sites including Forbes and a regular guest on BBC national and international radio and television news. Adrian's views on the gold market have been sought by the Financial Times and Economist magazine in London; CNBC, Bloomberg and TheStreet.com in New York; Germany's Der Stern; Italy's Il Sole 24 Ore, and many other respected finance publications.
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