China’s Gold Rush Triggers Skyrocketing Gold Prices Reports Kevin DeMeritt of Gold Centraladmin
January 15, 2007 Filed Under: Mining Services, Precious Metal
China is on course to overtake India as the world’s largest consumer of gold jewelry, according to Kevin DeMeritt of Lear Financial Inc., the parent company of Gold Central, one of the top gold coin companies in the U.S.
Gold jewelry demand in China, the world’s fastest-growing major economy, rose 13 percent in the first quarter and investment demand rose 36 percent, according to Lear Financial, Inc., who has been monitoring the Chinese gold market and advises investors to invest in American gold coins now before the price increases due to foreign interest.
Chinese retail sales of gold jewelry rose more than 20 percent in 2006. China’s consumption of gold coins and jewelry will keep growing quickly as the economy expands and living standards rise, reports the Chinese Ministry of Commerce in a report this month. The country’s 1000 leading gold, silver and jewelry companies increased retail sales by 14 percent in the first half.
Gold prices in China have risen more than 15 percent since the Shanghai Gold Exchange started operating last October, initiating free trade in gold for the first time in the history of the People’s Republic of China.
An increasing number of young city women are spending more on gold jewelry as incomes rise. They prefer white gold to other metals such as platinum because it is cheaper, trendier, has a silvery color and is 75 percent pure. These growing gold sales are keeping global prices for gold coins near recent highs.
“This trend is likely to continue into the foreseeable future,” said Kevin. “We remain bullish on buying American Eagle gold due to its investment appeal and ongoing strong demand despite the high prices. Under existing conditions prices may reach $US 1400 an ounce by 2010 from current levels.”
To learn more about investing in gold coins and gold bullion through Gold Central, call 310-656-3272 or visit www.goldcentral.com.
About Gold Central
Gold Central, a division of the internationally renowned precious metals asset firm Lear Financial, Inc., is dedicated to providing Web investors with all the pertinent information and tools needed to securely purchase, sell and trade gold online. Gold Central offers a diverse suite of intelligent investment resources including real-time pricing, regular e-mail alerts, newsletters, and a live staff available to answer real-world questions. Gold Central not only enables investors to stay current on the latest developments in the gold market, but also gives investors the flexibility to move gold as expeditiously as conventional paper investments.