China to Overtake India as Top Gold Market
- Posted on February 16, 2012 at 12:32pm by
Becket Adams
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HONG KONG (The Blaze/AP) — China is poised to overtake India to become the world’s biggest gold market this year as rising incomes fuel demand for the precious metal and a weak rupee diminishes Indian purchases, an industry group said Thursday.
The amount of gold bought in China rose 20 percent in 2011, the World Gold Council said in its annual report. That puts China’s 770 metric tons behind only first-place India, where 933 metric tons were bought.
The council said it’s “likely that China will emerge” as the world’s largest gold market for the first time in 2012. China has already moved into top place on a quarterly basis, with 190.9 metric tons purchased in the last three months of 2011 versus 173 tons in India.
Worldwide, the amount of gold purchased rose 0.4 percent to 4,0671 metric tons worth $205.5 billion.
Rising incomes in China, which is the world’s No. 2 economy, have resulted in a surge in demand for gold jewelry and other luxury goods. China became the world’s largest market for gold jewelry in the second half of 2011 as demand rose in every quarter, the report said.
Gold bars, coins and other gold-backed products are also popular because of a lack of other investment options in China.
The long-term rise in the price of gold has also made it a popular hedge against inflation – gold hit a record nominal high of $1,891.90 an ounce in August, though prices have fallen since then. Gold futures for April delivery ended trading in New York on Wednesday at $1,728.10 an ounce.
Central banks, many in developing economies, also boosted gold sales as they sought to diversify their growing piles of foreign currency reserves. They bought 439.7 metric tons of gold last year, up from 77 metric tons the year before and the highest amount since 1964, the report said.
The poor performance of China’s stock and property markets – the other two main choices for Chinese with money to invest – is boosting the popularity of gold as an investment, said Albert Cheng, a managing director at the London-based World Gold Council.
The Shanghai Composite Index is down 20 percent over the past year while house prices are starting to fall after authorities put in place curbs to cool an overheated market.
Strong Chinese demand for gold also helped sales leap 33.5 percent last year in Hong Kong, a popular destination for wealthy mainland shoppers because of lower taxes in the semi-autonomous Chinese territory.
Demand for gold jewelry in India, meanwhile, fell in the second half of 2011 because of the weakening rupee, which made gold more expensive.
Indians also grappled with high inflation last year that ate away their purchasing power, so they bought smaller amounts of gold, Cheng said.
The Associated Press contributed to this report.
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mrtinbender
Posted on February 17, 2012 at 11:11amstill have a hard time trying to figure out why gold is so special,,,it maybe somewhat rare but if it gets done to bartering food is going to be much rarer along with the means to aquire food guns and ammo,,so please explain to me the real important of haveing something you can not eat or wear to protect you from the elements etc,,like the paperboy said gallon of water on the desert is worth more than an ounce or two of gold
Report Post »seldomscene
Posted on February 16, 2012 at 10:30pmWell China buys stuff. Smart. The US gives our wealth away. Does anyone care any more? Oh, sorry, their on the smart phone.
Report Post »ashtongramp
Posted on February 17, 2012 at 11:00amVery true… It seems like everyone is being entertained to death for anyone to care.
Report Post »WeDontNeedNoSteenkinBadges10
Posted on February 16, 2012 at 8:51pmGET OUT OF FIAT MONEY, people!
The “paper money” scheme robs you of your savings (your $$ savings from even 10 years ago cannot buy the same items for same amount today) and ultimately wipes you out (every “currency” in history has failed!). THEN you realized (too late) that you’ve been a slave.
“Fiat Paper Money by Rep. Ron Paul, MD”
http://www.lewrockwell.com/paul/paul125.html
“In an article entitled ”Gold and Economic Freedom,” Federal Reserve Chairman Alan Greenspan wrote … “In the absence of the gold standard, there is no way to protect savings from confiscation through inflation.”
But there’s a greater danger than inflation — economic terrorist attack (yes, I’m talking “mmmm, mmmm, mmmm, Barack Hussein Obama”):
“Washington’s DELIBERATE ECONOMIC EARTHQUAKE Exposed By Glenn Beck :: Then ReBOOT USA To Communism!”
Report Post »http://www.youtube.com/watch?v=4y03b4kHais
NEWSTALKER
Posted on February 16, 2012 at 7:00pmChina is cornering the gold market-
Report Post »in which they then can have more control over the prices/value of it in the future. They saw this coming and realizing that if they can outproduce all others in every resource, then they will be in control of almost all resources. They also just happen to be on one of the best geographical locations in the world, being that the Indian Plate is smashing into China at unparalleled speed and bringing up huge sums of resources. It gets even more difficult when you add in China’s available labor force due to highest population in the world, to put that many people pulling up resources, who can match it? You might wonder how they can achieve this without high costs, by cheap labor (near slavery) of its own people. BTW – this will tame our unions as they are soon to be out of business for good. Can America compete after we have taught them so well? They subcontract America’s best and then they learn, now we are not needed and they do not have severance pay nor pension plans with health care. They are realists. Unions cannot compete with this level of cheaper labor in comparison to what unions demand. Union days are numbered.
THE REAL VALUE IS NOT GOLD, IT IS SIMPLE TRADE, YOUR SKILLS with HARD WORK in PRODUCTION (labor) in EXCHANGE FOR WHATEVER YOU AGREE TO WITH THE TRADER (your boss or servant). Remember, everyone has a boss and is a slave in some form, I prefer to be a free slave so that I can chose my boss, even if I am an entrepreneur.
TH30PH1LUS
Posted on February 16, 2012 at 6:23pmThe Chinese want to buy rights to American land with gold mines. This is happening, folks.
Also check: http://easterniowagovernment.com/2012/02/13/chinese-vice-presidents-iowa-visit-emphasizes-trade/
http://www.idahostatesman.com/2010/12/31/1472023/chinese-company-eyes-boise.html
Did you know our nation is literally being parceled up and sold to China? Where will we draw the line in the sand, my fellow Americans? When will we hold our leadership accountable? Will we sell out the very soil our forefathers gave us? Do Americans value anything more than money anymore?
Report Post »NEWSTALKER
Posted on February 16, 2012 at 7:12pmI totally agree…we need to protect our land because it is ours and it was established trough the BLOOD of our FATHERS and our SOLDIERS after them. I want to pass it on to OUR CHILDREN, not foreign establishments. If we owe another country something due to our governments irresponsible actions (which we are their bosses, not the other way around as they would have us believe) then we will have to pay it back in some other fashion. NOT OUR LAND nor OUR PEOPLE.
Report Post »hempstead1944
Posted on February 16, 2012 at 4:52pmTake a hint folks…….commodities will be bought and sold in gold sometime in the near future…..the dollar has become nearly worthless…..thanks to the Fed.
Report Post »Atrocities
Posted on February 16, 2012 at 3:57pmWell crap. I lost all my Gold in a fishing boat accident. All my gold, guns, and ammo all went down when my fishing boat sank in high seas someplace in some ocean somewhere on Earth. :(
Report Post »lukerw
Posted on February 16, 2012 at 1:44pmFor China… historically… Coins based upon Imperial Reigns… Prize tokens… Multiple, Regional, Currencies… GOLD was always the Base Standard!
Report Post »scrapadapolis
Posted on February 16, 2012 at 1:38pmHey dumb @sses go grocery shopping with a scale and the current value gold prices and shave off those slivers and try to buy something.I think gold is useless in the market of using it as currency..keep buying it you idiots,Americans will figure this and start a barter system to avoid over taxation.of goods and services.
Report Post »JP4JOY
Posted on February 16, 2012 at 1:43pmThere are a number of new depositories that let you use your gold and silver in conjunction with your DEBIT card. Even the state of Utah has endorsed gold and silver as currency, as per the US constitution. So just keep that paper (or cotton), I’ll keep my gold and silver.
Report Post »jakartaman
Posted on February 16, 2012 at 1:55pmYou’d be the dope with worthless flat $$
Although it will be useful after a bowel movement!
Silver is the play – keep watching Europe implode – We are next
Report Post »In addition to silver eagles I would suggest brass and lead
it’s a commin – be prepared
JP4JOY
Posted on February 16, 2012 at 2:14pm@JAKARTAMAN
I agree. Look for the sucker crash when the EU implodes. Then buy all the silver you can find. The brass and lead should already be in your possession, the shelves will be bare in minutes if it comes apart.
Report Post »planbdeveloper
Posted on February 16, 2012 at 2:25pmummmm….you may want to do a little research my friend. Gold is a CURRENCY accepted worldwide. Watch this….. http://www.karatbargoldvault.com
Report Post »PPMStudios
Posted on February 16, 2012 at 2:52pmJAKARTAMAN is correct about having plenty of lead.
I have a lot of it — and it’s already been portioned out into 164 – 230 grains by various ammunition manufactures for ease of use!!
Don‘t need gold when you’ve got a good aim….
Report Post »umreb78
Posted on February 16, 2012 at 3:50pmlol…What a moron…that is all
Report Post »balrog25
Posted on February 17, 2012 at 5:44pmLead and Gold are close on the Periodic table. High density soft metals, take your pick, or balance your portfolio. Keep your powder dry. And as a side note, if you are near a Cabelas, have you noticed some empty slots on the shelf? Hopefully it means people are listening and not that Cass is winning. God bless the USA.
Report Post »DD313
Posted on February 16, 2012 at 1:24pmHow much gold is left in Fort Knox? Has there been an audit recently?
Report Post »JP4JOY
Posted on February 16, 2012 at 1:39pmI think it was last audited in 1957. They won’t even let members of congress in to LOOK at the vault. The Clinton administration commissioned 15,000 tungsten bars (same density as gold) in the early ‘90’s. Gold plated bars (400 oz bars 22 ct. gold) were discovered a couple of years ago in Shanghai. The bars of gold (8000 tons) in Fort Knox are supposed to be 22 ct. because they were the melted coin of the realm, gold eagles confiscated by Roosevelt in 1933.
Report Post »lukerw
Posted on February 16, 2012 at 2:17pmThe US hav been paying Australia… for Gold Blanks… to make our Gold Coins! Seems like we do not have the Gold nor Skill…
Report Post »2theADDLED
Posted on February 16, 2012 at 4:56pmThere hasn‘t been gold in Fort Knox for quite a long time it has been moved back in 60’s or 70′s thats why security is null and what is there is for show.
Report Post »JP4JOY
Posted on February 16, 2012 at 1:14pmGold and silver are the ONLY true currencies. It can only be mined not created by printing presses. If anyone believes the talking heads that say gold is a relic, you’re going to be surprised. There is about 32,000 metric tons of gold known to be above ground. That would make a chunk about the size of a tennis court 30 feet high. We have about 7 billion people on the planet. That would be about 5 grams per person divided equally. Our GLOBAL net worth is about $60T divided by 7B people makes about $10,000 per person of net worth. That 5 grams of gold might become REALLY valuable in the near future.
Report Post »Minonkman
Posted on February 16, 2012 at 12:46pmThis is what I think about gold, you can not eat it. Gold does nothing for me and I have never even worn a ring. Now if you want to talk about guns and ammo, well then you have something.
Report Post »UBETHECHANGE
Posted on February 16, 2012 at 1:00pmYou can barter with gold, silver, jewelry.
Report Post »wewantchillywilly
Posted on February 16, 2012 at 1:04pmi read your statement, and just keep thinking you’re being sarcastic, but then the guns thing tells me youre being completely serious. if gold means nothing to you, what does your cash mean to you? you may as well wipe your ass with any money you have if you don’t think gold has value.
Report Post »PPMStudios
Posted on February 16, 2012 at 2:59pm@ WEWANT
If… If mind you…. Society ever breaks down and you’re the only one with food. That extra sandwich you‘ve got is going to be worth at least a troy ounce of gold isn’t it?
Things only have value because of what someone else is willing to trade it for….
Report Post »Detroit paperboy
Posted on February 16, 2012 at 3:06pmUbethechange
Report Post »But, you can also barter with toilet paper, cigarettes, alchohol, and bottled water….and of course, canned goods, all of which, will be more valuable than gold in a time of survival….And im not saying gold is a bad investment… Just a relative investment, cuz in the middle of a desert , a gallon of water is worth more than a gold brick….its all relative when your stomach is growling…
patriotinoh
Posted on February 16, 2012 at 3:56pmAgree 100% ! Lead and brass will be worth more than gold when it all comes down.
Report Post »Detroit paperboy
Posted on February 16, 2012 at 12:45pmMaybe they will loan us some…..
Report Post »Sam Brown
Posted on February 16, 2012 at 12:45pmGold is the only “money” people will take in time of war so nations prepare for war by buying gold.
Report Post »Anonymous T. Irrelevant
Posted on February 16, 2012 at 1:07pmYou think that’s why China has been buying up a lot of gold, lately?
Report Post »