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Posts Tagged ‘bullion’

Gold buying spree grips Chinese households

February 6, 2011 Comments off

In this world of chaos and tumult, the Chinese people know what to do to preserve their wealth – they buy gold. When Americans finally wake up, if that ever happens, there is a good chance that there won’t be any gold to buy at any price.

By David Lew
BEIJING (Commodity Online):An unprecedented investor interest in gold is turning Chinese households as store houses of wealth these days as people are on a gold buying spree across the rural and urban areas of the dragon country.

Bundles of news stories are these days written on the gold buying spree by the Chinese households. If not an overstatement, it is now a fact that people’s houses in China have soared in value thanks to the rising prices of gold in the last two years.

“People in China are buying gold like never before. They believe that gold is the best form of investment. So they are buying gold coins, bars and jewelery items and stocking up safely in their homes,” says Beijing-based bullion dealer J Kim Lee.

Quoting the World Gold Council figures, Lee says that if the gold buying spree by Chinese households goes on at the current pace, private gold Chinese demand may overtake Indian gold demand by 2014, giving the world’s two most populous nations two ounces of gold in every five sold worldwide that year.

Indian households are estimated to be owning 15,000 tonnes of gold. India continues to the largest consumer and importer of gold worldwide.

According to precious metals analyst Steven Jon Kaplan, a significant percentage of gold’s price increase in 2009-2010 was caused by the incremental demand from Read more…

China should increase precious metals

February 2, 2011 Comments off

Sungwoo Park

SEOUL – China should increase its gold and silver reserves, the Economic Information Daily reported on Monday, citing an interview with China’s central bank adviser Xia Bin.

Increasing gold reserves at the “appropriate time” is in line with the strategy of internationalizing the yuan, the report cited Xia as saying. “Related departments” should employ a “buy in the dip” strategy over a very long period of time, Xia said.

China should increase precious metals

Bullion soared nearly 30 percent in 2010, advancing for the 10th year, as the dollar dropped and investors sought a store of value amid currency debasement. China is allowing greater use of its currency for cross-border transactions, seeking to reduce reliance on the dollar.

The report is “a positive factor for gold prices in the mid-and-long term,” Hwang II Doo, a senior trader at Seoul-based Korea Exchange Bank Futures Co, said on Monday. Still “it didn’t have immediate impact on prices as gold’s gain has more to do with the unrest in Egypt at the moment.”

Total gold consumption in China, the second-largest buyer, may gain 15 percent in the first-half, fueled by growing demand for alternative investments and a hedge against inflation, the China Gold Association said last week.

Imports of gold by China jumped almost five-fold in the first 10 months of last year from the entire amount shipped in 2009, the Shanghai Gold Exchange has said. Shipments were 209 metric tons compared with 45 tons for all of 2009, said exchange Chairman Shen Xiangrong.

The country increased gold reserves by 454 tons to 1,054 tons since 2003, the State Administration of Foreign Exchange said in April 2009. The metal only accounts for 1.6 percent of the nation’s reserves held by the People’s Bank of China, according to the World Gold Council. China doesn’t regularly publish gold-trade figures and rarely comments on its reserves.

Bullion for immediate delivery gained as much as 0.7 percent to $1,346.27 an ounce, and was at $1,339.25 at 12:53 pm in Seoul. The price rose 2.5 percent on Jan 28, the biggest intra-day increase since Nov 4 as escalating tensions in Egypt fanned concern that unrest may spread to other parts of the Middle East, increasing demand for an investment haven.

Silver Hits A New 30- Year High

December 30, 2010 Comments off

Spot silver rose to a 30-year top on base metals strength, dollar weakness reaching $30.72 . European sovereign debt crisis and uncertainty in US economic boosted the investments appeal in the precious metals as a means of wealth protection.  The white metal is up 74% which is almost triple the growth recorded by the price of gold, which rose 26 percent.

The strength of silver has resulted in a wave of development around the world and a planned production increase in 2010 to 733.2 million ounces, representing increases of 3.3% compared to 2009 and 14% since 2006.

The metal has an inherent appeal due to its industrial use in electronics, cutlery and coins. In addition, supplies are limited.

“The fundamental picture for silver is much more attractive relative to gold,” said Jessica Cross of the precious metals consultancy Virtual Metals.

Finally, the chief raw material analysis of Deutsche Bank , Michael Lewis, said: “The growth potential of silver is greater than gold.”

Demand for the metal is going to the moon!