The World Gold Council (WGC) issued a recent report covering gold demand in China. Since China has been the largest source of demand in the gold market, it makes sense to review the World Gold Council's findings and expectations.
According to WGC, gold demand from China is likely to stay flat in 2014 before rising in years following. If true, this would be the first year since 2002 that demand from China has not increased at a near exponential rate. The stagnant demand is being attributed to an economic slowdown in China and constrained credit markets; both of which have been discussed in previous remarks.
China's demand for gold was up an astonishing 32% in 2013, likely the result of declining prices. It's thought that the low price of gold enticed Chinese consumers to bring forward jewelry and bullion purchases, possibly limiting growth in 2014. This spike in demand brought China to the ... Log in or subscribe to continue reading.
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