Gold News

Physical Gold Investment Strong in China

PHYSICAL Gold investment in China rose strongly last year, according to data published Wednesday by the leading precious metals consultancy.

GFMS reported that figures for the first quarter of 2011 suggest investment in Gold Bars has risen 30% year-on-year.

Speaking at the survey's launch, Philip Klapwijk, chairman of GFMS, said he expects demand for physical gold in China to grow at a "high clip" for the rest of 2011. He noted that China had to import "significant quantities of gold" in 2010 to meet this new source of demand.

Zhou Ming, deputy head of precious metals at the Industrial and Commercial Bank of China, commented in February on the rising demand for physical Gold Investment in China.

"We are seeing explosive demand for gold. As Chinese get wealthy, they look to diversify their investments and gold stands out as a good hedge against inflation," Zhou told Reuters.

Chinese demand for Gold Bars and coins amounted to 179 tonnes in 2010. Total worldwide demand, meanwhile, was 880 tonnes, a rise of 65.9% on 2009.

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