Chinese Demand for Gold Bars Up by 51%

Chinese Demand for Gold Bars Up by 51%

Chinese Demand for Gold Bars Up by 51%

$GLD

Demand for Gold bars in China, the world’s biggest Bullion market, soared by 50%+ in 1-H of this year as investors sought a haven from financial and geopolitical risks.

Sales climbed 51% to 158.40 tonnes from a year earlier, the China Gold Association said in a press statement sent via Wechat Friday.

Overall Gold buying climbed almost 10% to 545.2 tonnes, including 330.8 tonnes for jewelry sales, while industrial demand and other uses increased 9%.

Investor concerns earlier this year over the depreciation of Chinese currency and instability in the stock market, as well as worries about the slowdown in property prices, spurred demand for Gold.

Imports from Hong Kong climbed last month as Gold retreated on the global market, according to data from the Hong Kong Census and Statistics Department.

“Physical gold is playing an increasingly important role in Chinese residents’ investment portfolio,” the association said. “Gold is broadly favored by investors as a store of wealth as global markets become more fragile, with the Federal Reserve raising interest rates and increasing geopolitical uncertainty.”

Demand for all of Y  2017 may exceed 1,000 tonnes, the highest 4 years, as bar sales surge, Zhang Yongtao, the association’s secretary-general, said in an interview in May.

Domestic output, including production from imported feed-stock, fell 6% to 241.5 tonnes in 1-H, amid more stringent environment rules and depletion of mine resources, the group said Friday.

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