| China hungry for gold |
14 February, 2006 |
Shanghai Gold Exchange president Wang Zhe believes that China could become one of the world's biggest gold importers. The country's gold trading volume increased by 36 per cent in 2005, and Mr Zhe said China "has the potential to be one of the biggest gold markets in the world," according to the Financial Times. His views are supported by recent consumer spending in the world's most populous country. The Old Phoenix jewellery store in Shanghai has been selling a large number of $2,000 gold bars embossed with the Beijing Olympics logo. A salesman said that "there will be a new bar every year until 2008 and many people want the complete set". The situation is vastly different from even a few years ago – up to 1982, individuals in the country were not allowed to own gold. However, the country is now poised to become a significant gold importer. "Commodities will have a strong investment case in the year ahead because of the strong Asian growth," said Michael Hartnett of Merrill Lynch. Gold in particular has a strong case as global growth gains momentum in the second half of 2006. |
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