China Setting Out to Consolidate its Gold Mining Industry

China Setting Out to Consolidate its Gold Mining Industry

China Setting Out to Consolidate its Gold Mining Industry

$GLD

China’s official news agency Xinhua reported this week that the country is set increase annual Gold output to 500 tonnes by the Y 2020 from around 450 tonnes currently.

China overtook South Africa as the #1 miner of the precious Yellow metal in Y 2007. China’s Ministry of Industry and Information Technology (MIIT) expects Gold output to grow by an average 3% annually through Y 2020.

Last year output rose less than 1% to 453.5 tonnes according to the Ministry:

The MIIT aims to consolidate and upgrade the industry by reducing the number of Gold miners to around 450 from more than 600, and shutting down 40 tonnes of outdated production capacity by the end of Y 2020.

Last year, global Gold demand increased 2% to 4,309 tonnes, the highest since Y 2013, but the improvement was mainly on the back of investment purchases in the West as physical demand from top consumers China and India fell data from the World Gold Council (WGC) showed.

HeffX-LTN Analysis for GLD: Overall Short Intermediate Long
Neutral (0.20) Neutral (0.16) Neutral (0.17) Bullish (0.28)

Have a terrific weekend.

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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