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China gold consumption slows by Q2

2014-10-29 GMT+8:00

BEIJING, Oct. 27 (Xinhua) – Gold consumption in China has slowed to 3 percent year on year by the second quarter of the year, much lower than last year's 10 percent growth, according to Gong Shiliang, Chairman and General Manager of China Gold Deal Investment Company (China Golddeal).

The domestic demands for gold investments have slowed as the economic turnaround in the United States has prompted people to expect an exit of QE policies. They believe that the economic recovery in the United States will end the cycle of dollar depreciation, which will weaken quasi-money function of the gold. The fall in international gold prices will strengthen people's confidence on dollar and the low-level fluctuations of international gold prices will continue for a while, said Gong.

Despite the slower pace, the country's gold consumption remained growing. In recent years, China's gold consumption has grown fast with an annual growth rate of more than 10 percent on average, Gong added.

According to the second quarter report of the World Gold Council (WGC), consumption of gold jewelries in the Chinese mainland has reached 793.1 metric tons (tonnes) in the past 12 months, while that of gold bullion and gold medal for investments has stood at 223.8 tonnes.

China Golddeal is affiliated to China Banknote Printing and Minting Corporation, one of China's leading legal tender producing entities.  (Edited by Hu Pingchao,