WGC: Growth of middle class will support demand for goldStaff writer ▼ | September 15, 2014
Gold demand in China will grow steadily as the middle class expands and the yuan is further internationalized, which will require an increase in gold reserves.
Precious The middle class expands
"People love gold in China, and for some, it seems to be a status symbol," Mr. Shishmanian said. "For China's investors, gold will be serving as a wealth protection and store of value during times of economic turmoil because gold is a safe-haven alternative asset." He estimated that gold consumption is likely to hit 900 to 1,000 tons this year, but demand could reach at least 1,350 tons by 2016.
Meanwhile, China's push to make the renminbi a global currency will further increase the central bank's gold reserves. ■