China is the largest consumer of commodities in the world -- so this week's changes at its top table matter to miners, metal traders and investors.
At the 18th Chinese Communist Party Congress a once-a-decade leadership change is about to take place. Later this week, the 25-member Politburo will be selected, with the all-powerful Politburo Standing Committee chosen from its ranks. ...
In September, China approved $156 billion (98 billion British pounds) of infrastructure spend, in an attempt to boost slowing growth. However, despite the last decade being about iron ore and copper as large-scale building operations came to the fore, the next 10 years could be very different, according to Kieron Hodgson, a resources analyst at Charles Stanley.
"The growth in infrastructure spend in China is now moving to more secondary infrastructure such as telephone lines, which will be built out of fibre-optic cables and not copper," he says. "China does not just intend to match western infrastructure, it intends to beat it." ...
He is also very bullish on the prospects of precious metals, as Chinese citizens have only been legally allowed to own gold since 2004. Mr Hodgson points out that China is expected to become the world's largest gold consumer this year and the rising numbers of middle classes are likely to continue to boost demand further.
China is already the world's fastest-growing gold jewellery market, according to the World Gold Council (WGC), with consumers keen on purity. This means around 80% of the gold jewellery sold in the country is 24 carat, the WGC says.
Despite the recent fall in prices, Mr Hodgson is also bullish on Chinese demand for diamonds, "the ultimate discretionary purchase," he notes.
A strengthening Chinese economy is positive for commodities and the next decade could be very different in terms of commodity demand, but China really does look good for gold.
At the 18th Chinese Communist Party Congress a once-a-decade leadership change is about to take place. Later this week, the 25-member Politburo will be selected, with the all-powerful Politburo Standing Committee chosen from its ranks. ...
In September, China approved $156 billion (98 billion British pounds) of infrastructure spend, in an attempt to boost slowing growth. However, despite the last decade being about iron ore and copper as large-scale building operations came to the fore, the next 10 years could be very different, according to Kieron Hodgson, a resources analyst at Charles Stanley.
"The growth in infrastructure spend in China is now moving to more secondary infrastructure such as telephone lines, which will be built out of fibre-optic cables and not copper," he says. "China does not just intend to match western infrastructure, it intends to beat it." ...
He is also very bullish on the prospects of precious metals, as Chinese citizens have only been legally allowed to own gold since 2004. Mr Hodgson points out that China is expected to become the world's largest gold consumer this year and the rising numbers of middle classes are likely to continue to boost demand further.
China is already the world's fastest-growing gold jewellery market, according to the World Gold Council (WGC), with consumers keen on purity. This means around 80% of the gold jewellery sold in the country is 24 carat, the WGC says.
Despite the recent fall in prices, Mr Hodgson is also bullish on Chinese demand for diamonds, "the ultimate discretionary purchase," he notes.
A strengthening Chinese economy is positive for commodities and the next decade could be very different in terms of commodity demand, but China really does look good for gold.
More information can be found online at http://www.goldbullionadvisors.com
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