According to the latest gold news from the World Gold Council, the demand for gold in China has trebled in a period of nine 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 ancient times, gold has been a precious and extremely sought after metal by the middle income and high income earners. The upsurge in the Chinese demand for the precious metal is connected to a fast growing economy and the emergency of a strong middle income earning class. China is the second largest economy behind The United States, and the world’s leading commodity exporter. The Chinese Government has announced a minimum wage increment of 13%, a scenario much likely to increase household incomes and send more customers to the jewelry shops.
According to gold news from the World Gold Council, there is an increase in the number of Chinese young people scrambling for the precious metal. A jewelry vendor in Hong Kong regarded the gold frenzy as a contrast to the standard belief where gold consumption was meant for the retirees with adequate pension money to spend. There is an increase in demand for custom made wedding and engagement gold rings from young people whose lifestyle is more and more influenced by the West.
But financial analysts are skeptical that the upsurge will last. The Chinese population development has stagnated, like in most developed economies. collectively 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 signifies that in contrast to the Developed democracies and free market economies, the dictatorship is in full manage of its economy with adequate flexibility to adjust during hard economic times.They gold frenzy in China is not about to stop.