China to need more gold in future
Tuesday, 30 March 2010
The World Gold Council, an industry group, estimated that gold demand in China could double from current levels over the next decade, on rising jewellery and investment demand.
According to Marketwatch.com, demand for gold in China reached 423 metric tonnes (466 short tonnes) last year; domestic mine supply contributed only 314 metric tonnes (346 short tonnes) during the same year.
The shortfall creates a “snowball” effect as China's gold industry has to rely on imports, the report adds.
The Chinese regard gold as a sign of prosperity, an ornament, a currency and an integral part of Chinese religion, the report says.