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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (62575)	4/8/2010 2:16:47 AM
From: Amark$p	Read Replies (1) \| Respond to of 218255

GEOFF CANDY: Fair enough. In terms of the research report that was put out around the growth in the Chinese market, there is talk of demand for gold in China doubling in the next decade and a lot of that coming from investment demand and also jewellery. Is there going to be a difference in the way that those two factors manifest themselves? Marcus GRUBB: Yes, I think there is - the history so far since the deregulation of the gold market in China is that you have seen a strong average growth rate for gold demand - about 13% per annum to the point where China as a market now accounts for about 11% of annual gold demand and is the second largest demand market after India in terms of tonnage. The total tonnage last year was about 423 metric tons and at the same time you have seen supply also rise in the Chinese market to a peak in 2009 of about 314 tons. So there is an imbalance in the Chinese market that is covered by imported gold into China. Also the history so far is that investment has grown more rapidly than jewellery. However, jewellery still represents about 80% of annual demand. So jewellery is the largest single category of demand across China for gold but investment is growing more rapidly therefore its share in Chinese gold demand is rising as a proportion of the total. That's the history so far. What the China gold report looked at was future prospects for gold demand, if those kinds of growth rates continue, linked to the continued economic growth in China and continued increasing wealth in prosperity among the middle classes in China in the cities and also in rural areas and the impact that will have not only in the tonnage of gold demand from the Chinese market, but also the impact that could have on the global gold market because I think it is clear that if those trends do continue in the next five to 10 years, you will see it will become more difficult for domestic mine production to keep pace with the strong demand for gold from Chinese consumers and that clearly will have an impact on the gold market outside China.