Tuesday, 24th May 2005 (4449 views)

The efforts of the World Gold Council (WGC) have helped drive a surge in demand for and consumption of gold in China.

The WGC has been working with jewellery retailers and well-known brands in China for some time to promote the popularity of K-gold, or 18 karat gold, products.

Figures reported in China Daily indicate that consumption of K-gold rose to 12 per cent of all gold jewellery consumption last year - six times more than the two per cent seen in 2004, and more than twice the five per cent seen in 2003.

Overall gold demand in mainland China climbed to 70.9 tons in the first quarter of 2005, compared to 62 tons a year ago, WGC statistics reveal.

Demand for gold jewellery meanwhile rose by 13.2 per cent year on year to reach 66.8 tons, while retail investment increased by 35.8 per cent to 4.1 tons.

James Burton, CEO of the WGC, said that favourable policies installed by the Chinese government should make it easier for Chinese investors to choose gold as an investment vehicle.

"Gold is an important part of an investment portfolio, as it maintains long-term value and is a good hedge against inflation," Mr Burton stated.

 

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