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Official Sees China Gold Demand Up 22% in 3 Years

Release Date: 
Thursday, May 26, 2011

Demand for gold in China may rise more than 22 percent in the next three years and far outpace the country's gold mining production, said the head of China's largest state-owned gold miner, China National Gold Group.

According to the precious metals consultancy GFMS, this means China may double its gold imports to 400 tons this year.

This increase in China's gold production equals a gain of nearly 19 percent from 2010, while consumption is set to grow by nearly 25% to 700 tons.  "I'm very optimistic about the future of China's gold market," Sun said.  The official added that Beijing's move to consolidate the gold mining sector, improve technology and encourage exploration at depths exceeding 1,000 meters would combine to boost the country's underground reserves and output over the coming years.

(Sources: "UPDATE 1-China gold demand seen rising over 22 pct in three years,"Reuters, May 26, 2011; "Gold Knocked Off 3-Week Peak by Sagging Silver," CNBC, May 26, 2011)

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†This material has been prepared for private use. Although the information in this commentary has been obtained from sources believed to be reliable, Goldline does not guarantee its accuracy and such information may be incomplete or condensed. The opinions expressed are subject to change without notice.

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