Gold purchases in China will surge 29% in 2013, to a record 1,000 tons, according to the median of 13 estimates from analysts, traders and gold producers in the country surveyed by Bloomberg News.
China’s purchases of gold climbed 30%, to 996.3 tons, in the 12 months through September, while sales in India rose 24%, to 977.6 tons, according to the Londonbased World Gold Council. India was No. 1 in 2012. Each country buys more gold than the US, Europe and the Middle East combined.
Gold’s burnished appeal in China stems in part from a lack of alternative investments. “In China, you look around and see very few places to put your money,” says Duan Shihua, a partner at Shanghai Leading Investment Management. “With the share market down and the government nudging people away from real estate, gold will remain a favoured choice.”
The increased appetite for gold also reflects rising wealth. China’s rural per capita income in the first nine months of the year jumped 12.5% from a year earlier, while urban per capita disposable income rose 9.5%. In April, when the price of gold fell 14% in two days, Chinese media showed images of women clearing shelves in gold shops.
Source: Economictimes
Source:Bullion Bulletin