Online Calculator | The Great Chinese Need For Gold And Silver

The last few years have seen China on a remarkable shopping spree for gold. In fact, the World Gold Council said this year that China will increase its demand for physical gold investment by as much as 50% from the 105.5 tons recorded in 2010.

The Shanghai Gold Exchange had also reported that gold imports of the country increased by six times in the first 10 months of 2010 as a result of increased demand from Chinese investors.

Demand for physical gold is being boosted by the Chinese jewelry market.  It has been reported that the Chinese jewelry market bought about 143 metric tons of gold in the first three months of 2011, which is an increase of 21% compared to the first three months of the previous year.

The People’s Bank of China had recently shared it is eyeing to sell and purchase more gold due to the domestic appetite for gold investments. Just recently, the first gold exchange traded fund was launched in China, luring record collection early this year. High demand for gold spurred investments amounting to $483 to the first gold ETF in China.

The launch of the ETF is significant because Chinese investors have an additional option in cashing in on the soaring prices of gold and gold-related investments. With the ETF, an investor can now invest in gold aside from purchasing real silver and gold. Now imagine how much boost in demand gold ETFs will enjoy now that this has been introduced to the Chinese market. With over 1.3 billion potential investors, gold ETFs in China would certainly boost gold prices in the world market. 

Chinese have been pushing for higher silver prices because of the country’s great demand.  In 2010, the country imported a record 3,500 tons of silver. While silver ETFs in China have yet to be launched, investors are all eager to have their hands on these investment instruments given the demand for silver.