Consumer demand could double China’s gold market in the coming decade. Investors are leading the latest gold rush, increasingly opting for physical delivery which may bring record-breaking prices in 2011.
The gold rush in China accelerated during the first 10 months of 2010 as investors seeking protection from looming inflation drove imports up nearly five times more than the amount brought in all of last year.
Shen Xiangrong, chairman of the Shanghai Gold Exchange, told a conference that gold imports rose to 209 metric tons compared with 45 tons for all of 2009.
NuWire reported that government efforts to keep the property market from overheating coupled with stock market weakness sparked investment demand for gold during the first half of the year.