Inflation worries lift China's gold imports almost 5-fold
By Zhang Fengming |
December 3, 2010, Friday
|
Print Edition
Print Edition
CHINA'S gold imports surged almost fivefold in the first 10 months from last year as concerns over inflation boosted the metal's appeal as a safe haven, said the Shanghai Gold Exchange.
Imports of gold rose to 209 metric tons compared with 45 tons for the whole of 2009, Shen Xiangrong, chairman of the exchange, told a conference in Shanghai yesterday.
Gold prices have gained 27 percent this year on concerns of a double-dip recession, a weak US dollar and the European debt crisis but that has not stopped Chinese traditional frenzy for the metal.
The World Gold Council said earlier that global gold demand this year is expected to rise from 2009 on bigger appetite from India and China. China, which accounts for one-fifth of global demand, is the world's largest producer and second-biggest consumer.
China's investment gold demand may reach 150 metric tons this year, up from 105 tons last year, Albert Cheng, managing director of the WGC's Far East department, told the conference.
A key driver that bolsters gold's reputation as a safe haven is inflation which rose to 4.4 percent in October in China.
Gold prices hit a record US$1,403 an ounce in November.
The price surge reflected a slump in the US dollar as investors are concerned of a double-dip recession in the United States and currency depreciation as the Federal Reserve said it would pump US$600 billion to bolster a faltering American economy.
The WGC and Li Qingfei, general manager of the Shanghai branch of China National Gold, said resilient gold buying suggested consumers in China are becoming immune to rising prices for the metal.
"High-flying prices didn't put a brake on our gold bullion sales," said Li. "On the contrary, gold sales boomed just like the golden days of the housing market - home buyers dashed to buy as they were afraid of even higher prices in future."
Imports of gold rose to 209 metric tons compared with 45 tons for the whole of 2009, Shen Xiangrong, chairman of the exchange, told a conference in Shanghai yesterday.
Gold prices have gained 27 percent this year on concerns of a double-dip recession, a weak US dollar and the European debt crisis but that has not stopped Chinese traditional frenzy for the metal.
The World Gold Council said earlier that global gold demand this year is expected to rise from 2009 on bigger appetite from India and China. China, which accounts for one-fifth of global demand, is the world's largest producer and second-biggest consumer.
China's investment gold demand may reach 150 metric tons this year, up from 105 tons last year, Albert Cheng, managing director of the WGC's Far East department, told the conference.
A key driver that bolsters gold's reputation as a safe haven is inflation which rose to 4.4 percent in October in China.
Gold prices hit a record US$1,403 an ounce in November.
The price surge reflected a slump in the US dollar as investors are concerned of a double-dip recession in the United States and currency depreciation as the Federal Reserve said it would pump US$600 billion to bolster a faltering American economy.
The WGC and Li Qingfei, general manager of the Shanghai branch of China National Gold, said resilient gold buying suggested consumers in China are becoming immune to rising prices for the metal.
"High-flying prices didn't put a brake on our gold bullion sales," said Li. "On the contrary, gold sales boomed just like the golden days of the housing market - home buyers dashed to buy as they were afraid of even higher prices in future."
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