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WGC: Growth of middle class will support demand for gold

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Staff 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.
Gold china
Precious   The middle class expands
Although gold prices have been sliding since last year, the metal remains an attractive investment in China. Demand for gold jewelry and bars will provide a "cushion" for the price in the coming years, Aram Shishmanian, chief executive officer of the World Gold Council, told the China Gold Congress & Expo 2014 which opened on Wednesday in Beijing.

"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.