Platinum’s rare nature gives it additional value and appeal

Huw Daniel is the CEO of Platinum Guild International, overseeing market development activities in China, Japan, India and the USA, on behalf of the platinum producers of South Africa. Before taking up this role in 2015, Huw ran PGI USA for 12 years...

13 september 2021

Marco Carniello: We want to continue to be the engine boosting the jewellery industry

Italian Exhibition Group (IEG) is a leader in Italy in the organisation of trade fairs and one of the main operators in the trade fair and conference sector at European level, with structures in Rimini and Vicenza, as well as further sites in...

06 september 2021

There is a significant need for smart and technological financial solutions in the diamond industry

MDPS, the Israeli start-up Fintech company from the Mazalit Group is gearing up to enter the diamond industry soon. Zeev Maimon, the CEO of MDPS is also the Founder / CEO of MAZALIT, a B2B payment platform designed and dedicated to the global diamond...

30 august 2021

The future for synthetics lies in that it has become possible to grow a stone you want and make what you want out of it

Alex Popov, President of the Moscow Diamond Exchange and head of the Âme jewelry brand, which uses lab-grown diamonds to produce jewelry, sat for an interview with Rough&Polished sharing his views on the coexistence of natural and man-made diamonds in...

23 august 2021

De Beers’ GemFair ropes in more than 160 Sierra Leone artisanal miners

De Beers inaugurated its GemFair pilot programme in Sierra Leone’s Kono District with 14-member mine sites in 2018 to create a secure route to market for ethically sourced artisanal and small-scale diamonds. GemFair programme manager Ruby Stocklin-Weinberg...

16 august 2021

Strong demand from gold-hungry China in next 4 years – World Gold Council

30 april 2014

Private sector demand for gold in China is poised to increase by 25% from the current level of 1 100 t/y to at least 1 350 t/y by 2017, the World Gold Council (WGC) said, according to
Last year saw China become the world’s largest gold market and, although 2014 Chinese gold demand is set for consolidation, the succeeding years are expected to see ongoing strong growth, driven by rising real incomes, a deepening pool of private savings and rapid urbanisation across China.
In mining, China has gone from being a minor producer to the world’s largest source of mined gold, with production doubling from 217 t to 437 t in the past ten year.
In its report entitled 'China's gold market: progress and prospects', the WGC examines the factors that have taken the country to the number-one gold position, both in production and consumption, in the wake of the liberalisation of China’s gold market in the late 1990s and the subsequent offering of gold bullion products by the country’s commercial banks from 2004.
The report also analyses why the market will continue to expand, irrespective of short-term blips in the economy, and calculates that the next six years will see China’s middle class grow by 200-million people to 500-million people, compared with the population of the US of 319-million people.
“We have witnessed astonishing increases in demand for gold from consumers across the country,” said WCG Far East MD Albert Cheng, adding that there was significant room for the market to grow even further in the light of China’s deep-seated cultural affinity for gold, increasing affluence and supportive State.
China is now seen to be at the centre of the global gold ecosystem and, while the country faces important challenges as it seeks to sustain economic growth and liberalise its financial system, buildup in personal incomes and the public’s pool of savings should support a medium-term increase in the demand for gold, in both jewellery and investment.
The report finds that China’s continuing urbanisation has resulted in China now having 170 cities with more than one-million inhabitants and that demand for gold among those with a greater disposable income and limited investment opportunities will continue to grow.
Chinese savings levels remain high with an estimated $7.5-trillion in Chinese bank accounts, but household allocations of $300-billion are still moderate given that gold is seen as a stable, accessible investment by consumers, particularly in the light of rising house prices and a lack of alternative savings options.
Chinese investors have a preference for physical gold over paper, with investment focused on small bars, gift bars or gold accumulation plans known as Gaps.
New gold investment products mean that medium term demand for bars and coins could reach 500 t by 2017, a rise of close to 25% above its record level last year.
China has become the world’s number one jewellery market, nearly trebling in size over the past decade.
At 669 t in 2013, jewellery accounts for 30% of global jewellery demand. Estimates suggest that demand will continue to grow and reach 780 t by 2017.
There are now more than 100,000 retail outlets selling 24 ct gold and thousands of manufacturers nationwide.
Consumer sentiment towards gold is unwavering and although 40% of jewellery consumption relates to weddings, the appetite for gold in China goes beyond occasions and gift giving.
Eighty per cent of consumers surveyed by the WGC planned to maintain or increase their spending on 24 ct gold jewellery over the next 12 months in the belief that gold will hold its long-term value and because they expect to have a higher level of disposable income.
Chinese electronics demand for gold will see small gains in the next four years.
Industrial demand has risen from 16 t in 2003 to 66 t in 2013 and China is also the leading market for gold-linked patents such as the use of nanogold in healthcare.
Official gold holdings in China totalled 1 054 t at the end of 2013 making the country the world’s sixth largest holder of bullion.
Based on this declared stock, gold represents 1% of China’s total official reserves, down from a peak of almost 2% in 2012, owing to the rapid growth of the country’s foreign exchange holdings, which reached $3.8-trillion at the end of 2013.
Speculation continues as to whether the Chinese government has increased its gold holdings.