Thursday, September 01, 2011

China & India demand for gold is half the rest of the world.

The world Gold Council reports in their Gold Demand Trends report for 2011 second quarter that China and India account for over half the worlds gold demand. China and India also make up 52 percent of investments in the world for gold bars and coins.

Also the two nations made up the major portion of jewelery and gold investment demand with almost 920 tonnes worth around 44.5 billion US dollars. This is the second highest quarterly value on record the report stated.

"These two markets accounted for 52 per cent of global bar and coin investment and 55 per cent of global jewellery demand and year-on-year volume growth in total consumer demand was 38 per cent in India and 25 per cent in China, compared with a global growth rate of 7 per cent," according to the WGC Report.

It went on, "for the remainder of the year as optimistic". In volume terms, the demand was 17 per cent in the 2011 second quarter as compared to the year-ago period. While in terms of value, the demand rose by five per cent during the same time."

"After setting a new record at USD 1,552.50/oz, gold retreated back towards USD 1,500/oz, providing a final boost to demand at the close of the quarter," the report added.

Since then gold has climbed to over 1800 and looks set to attain the magic 2000 dollars an ounce.

With the Chinese and Indian markets buying gold like there is no tomorrow, this must be the right time to buy gold.

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