Gold demand in China to remain strong long-term, says its biggest miner - Wealth Management

Meanwhile, top jeweler reports 32% increase in profits

Official gold-demand statistics in China for the second quarter could show a bit of a lull, but new reports from its mining and retail-jewelry sectors suggest that the long-term trend remains bullish.

The Wall Street Journal reported that “China’s largest gold-mining company, China National Gold Group Corp., is on the hunt for global acquisitions and partnerships.”

Why? Last year “the country’s gold consumption grew to more than 1,176.4 metric tons, but its production was 428 metric tons, a dynamic which encourages overseas acquisitions.”

Company President Xin Song said “he believed that demand for gold in China will remain strong even if the second quarter of this year sees a slight decline over the preceding quarter. … Long-term demand should stay strong.”

And in the retail gold sector, the world’s largest jewelry chain, Chow Tai Fook, “reported a 32% increase in profit as it sold more gold products,” Bloomberg noted.

“We are also confident that our business will continue to benefit from the colossal market potential in mainland China, especially in the lower-tier inland cities where economic growth and resilience to macro-economic changes are both strong,” the company said.

More information can be found online at http://www.goldbullionadvisors.com