The World Gold Council reported that Chinese gold demand increased 26% in the second quarter amid booming interest in retail investment demand for gold.
During the second quarter, 48% of China’s gold demand came from the retail investment market, which increased 25% from the previous year.
As a result, the country retained its position as the world’s second-largest consumer of gold as the demand for gold in China from April to June was 112 tonnes.
China outperformed all other countries in the world in terms of the growth rate in the retail investment volume for the metal.
Wang Lixin, General Manager of the World Gold Council in China
In the long-term, gold demand in China is expected to balloon as mounting inflation concerns and a faltering global economic recovery has recently caused an increase in retail investment demand.
The government recently released new guidelines to encourage the development of the domestic gold market. This will spur interest for gold as an investment and boost liquidity in China’s domestic gold market.
These new regulation also strongly support foreign investment in China’s gold industry. And companies with well-established Chinese gold positions may be well-leveraged to take advantage of sharp increases in domestic demand.
In a recent report for Wealth Daily, I discuss how the liberalization of China’s gold industry could have drastic effects on the delicate supply/demand balance for gold and send the price of gold skyrocketing higher as millions of new gold investors in China bust into the global gold market.
Plus, I discuss two junior gold stocks that are looking to profit with gold projects in China. You can read my latest free report by clicking here or finding it on the Wealth Daily website called: China’s Gold Bull Market
Editor, Wealth Daily
Investment Director, Hard Money Millionaire and Underground Profits