Libertarian_Guard
2nd December 2010, 03:11 PM
China's gold imports in the first 10 months jumped almost fivefold from the entire amount shipped in last year as concern about higher inflation increased its appeal as a store of value, said the Shanghai Gold Exchange.
Imports have gained to 209 metric tons compared with 45 tons for all of 2009, Shen Xiangrong, chairman of the bourse, told a conference in Shanghai today. China is the world's largest producer and second-largest consumer.
Bullion has gained 27 per cent this year and is set for a 10th annual gain as the dollar has declined and investors sought a store of value amid concern that the global economic recovery may falter. China has pledged to use price controls and may raise interest rates a second time this year to slow inflation that rose in October to a two-year high.
Advertisement: Story continues below “People there need to buy gold to hedge against inflation as the country's tightening monetary policy drives investors from stocks and properties to gold,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo. China's demand would continue to grow, making the country one of the top importers together with India, he said.
Gold demand in China gained in the first half of this year as government measures to cool the property market and falling equities spurred investment, the Shanghai Gold Exchange said July 7.
“The expectation for higher inflation has fueled great interest among investors to hold physical gold, which led to higher imports,” the exchange's Shen said.
Sales of gold products such as bars by China National Gold Group Corp., owner of the country's largest deposit of the metal, jumped as much as 40 per cent in the first half, Song Quanli, deputy party secretary at the company, said July 7.
http://www.smh.com.au/business/chinas-gold-imports-surge-fivefold-on-inflation-fears-20101202-18hms.html
Imports have gained to 209 metric tons compared with 45 tons for all of 2009, Shen Xiangrong, chairman of the bourse, told a conference in Shanghai today. China is the world's largest producer and second-largest consumer.
Bullion has gained 27 per cent this year and is set for a 10th annual gain as the dollar has declined and investors sought a store of value amid concern that the global economic recovery may falter. China has pledged to use price controls and may raise interest rates a second time this year to slow inflation that rose in October to a two-year high.
Advertisement: Story continues below “People there need to buy gold to hedge against inflation as the country's tightening monetary policy drives investors from stocks and properties to gold,” said Hiroyuki Kikukawa, general manager of research at IDO Securities Co. in Tokyo. China's demand would continue to grow, making the country one of the top importers together with India, he said.
Gold demand in China gained in the first half of this year as government measures to cool the property market and falling equities spurred investment, the Shanghai Gold Exchange said July 7.
“The expectation for higher inflation has fueled great interest among investors to hold physical gold, which led to higher imports,” the exchange's Shen said.
Sales of gold products such as bars by China National Gold Group Corp., owner of the country's largest deposit of the metal, jumped as much as 40 per cent in the first half, Song Quanli, deputy party secretary at the company, said July 7.
http://www.smh.com.au/business/chinas-gold-imports-surge-fivefold-on-inflation-fears-20101202-18hms.html