Saturday, February 19, 2011
Chinese Appetite for Silver and Gold
The scale of China's gold demand, which has increased on average at a double-digit clip over the past decade, has caught the market by surprise. Data showed China imported 209 tonnes of gold the first 10 months of last year, versus 333 tonnes by India for the whole year. ICBC launched its second physical gold investment product, which sells gold bars to investors, which can be resold for cash through ICBC based on real-time gold prices. Zhou, from the ICBC Bank, said there was also voracious demand for silver, with the bank selling about 13 tonnes of physical silver in January alone, compared with 33 tonnes in the whole of 2010.
Since the Chinese are not speculating in precious metals but hoarding it, prices will rocket till higher.