Nation now No 3 gold consumer, producer
Updated: 2007-07-20 09:45
"They (the gold bars and coins) are regarded as safe and reliable investment tools, amid fluctuations in the nation's stock market and rising property prices," said Sun Zhaoxue, head of the China Gold Association. He said he believes individual gold investment will grow faster than jewelry purchases.
Growth in both gold production and demand in the country is also spurred by rising prices on international markets.
Official statistics show that the average price of aurum-99.99 gold in China jumped by 32.35 percent, or 37.95 yuan a gram, last year over 2005.
Domestic gold prices began fluctuating in line with changes in the world market in 2001 when the Shanghai Gold Exchange, China's sole national bourse for the metal, was formed in a move to open up market for the precious metal.
Trading volume at the exchange, where there are 149 members making spot transactions in renminbi, increased by 37.81 percent last year over 2005 to a total of 1,249.3 tons.
The survey forecasts that world gold prices will exceed $700 an ounce by the end of this year compared with the current $640 to $680, and might rise to $850 an ounce next year.
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