Capital Gold Group Report: CHINA GOLD -- Demand up 26%

Business Times

China's love of solid gold could be fueling the sharp rise in the precious metal's price.

In the week beginning February 18th, gold prices rose to $948.60 (£482)per ounce.

This coincided with China usurping the US as the second largest gold consumer last year, after India. Gold enjoyed a 26 per cent increase in demand.

Commenting on the rise in China's gold acquisitions, the Business Times (BT) wrote: "A larger class of new rich created by a booming economy is on the hunt for new investment opportunities and the rising price of gold has proved a powerful lure."

In addition, new wealth in the country is fuelling the desire for gold jewellery and traditional symbols of the new year – this year saw a flurry on sales of solid gold rats, BT added.

The newspaper reported that, according to the World Gold Council, China "played a significant role" in the world gold market.

Forbes stated that trading volume at the Shanghai Gold Exchange reached 1828.13 tons last year, a rise of 46.3 per cent year-on-year.

Capital Gold Group, gold group, gold, gold prices, gold news, gold coins, gold bullion, gold IRA, IRA gold