Gold Demand Surges in China as Production Sags

Jon Economy, Gold, Market Commentary, Precious Metals

The Chinese are buying gold again after a slump in consumer demand last year.
Meanwhile, Chinese gold production is falling.
According to data released by the China Gold Association, gold demand rose 15.5% through the first three quarters of 2017. Demand totaled 815.9 tons, pushed upward by a resurgent jewelry market.
Demand figures released by the association include jewelry, bullion, and industrial gold, but exclude central bank purchases.
China Gold Association chairman Zhang Yongtao told the South China Morning Newsthere are good signs that jewelry demand has returned to a growth track after a sluggish 2016. The data backs him up. Gold jewelry sales increased 7.4% to 503.9 tons through the first three quarters of this year. That compares with a 20% slump in sales during the same period last year.

This post was published at Schiffgold on NOVEMBER 1, 2017.