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According to the latest gold news from the World Gold Council, the demand for gold in China has trebled in a period of nine many years. In 2003, Chinese annual Gold imports stood at 207 metric tons but this has risen to slightly above 700 metric tons of annual imports in the year 2011.
Since historical times, gold has been a treasured and extremely sought after metallic by the middle income and high income earners. The upsurge in the Chinese demand for the treasured metallic is related to a fast growing economy and the crisis of a robust middle income earning type. China is the second greatest economy behind The United States, and the world’s leading commodity exporter. The Chinese government has announced a minimum wage increment of 13%, a circumstances much likely to increase household incomes and send more customers to the jewellery shops.
According to gold news from the World Gold Council, there is an increase in the number of Chinese young people scrambling for the treasured metallic. A jewellery dealer in Hong Kong regarded the gold frenzy as a contrast to the traditional belief where gold consumption was meant for the retirees with enough pension money to spend. There is an increase in demand for designer wedding and engagement gold rings from young people whose lifestyle is increasingly influenced by the West.
But financial analysts are skeptical that the upsurge will last. The Chinese population growth has stagnated, like in most developed economies. together with an increased life span, the economy will be stretched by a big pension budget as has been the case with Japan. However, the gold news indicates that unlike the Western democracies and free market economies, the dictatorship is in full control of its economy with enough flexibility to adjust during hard economic times.They gold frenzy in China is not about to stop.
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