Financial Daily from THE HINDU group of publications
Monday, Mar 06, 2006
Financial Daily from THE HINDU group of publications Monday, Mar 06, 2006 |
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Agri-Biz & Commodities
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Gold & Silver China's gold import rising G. Chandrashekhar
Mumbai , March 5 Gold market sentiment could get an extra boost from news that Bank of China will allow depositors to buy and sell gold products with their dollar accounts. This is likely to have a positive impact on investment activity in China. The product may be launched in Shanghai soon, before extending to other cities later this year. According to China's National Development and Reform Commission, Chinese gold buying rose by 11.7 per cent to 224 tonnes in 2005, and is expected to grow to 240 tonnes in 2006. It is also reported that newly discovered gold mine resources/reserves rose by 120 tonnes (or 24 percent) to 620 tonnes in 2005, and they aim to increase it to 650 tonnes this year.
Import needs
With soaring incomes, demand for gold in the world's most populous country is expected to rise. Experts estimate that in about seven years, China's import requirement would rise to 600 tonnes a year. In order to meet the projected requirement, the Chinese Government has allowed foreign direct investment in gold mining. In the coming years, the two Asian giants - India and China - together would account for a significant part of global gold import trade, and thereby be in a position to impact global prices.
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