Gold consumption continues to surge in China: expert
5/12/2006 16:19
The consumption of gold across China will top 350 tons this year, a record
high, according to Cheng Fumin, chairman of China Gold
Association.
Addressing an ongoing forum on gold and precious metals held in
Shanghai, Cheng said rising gold prices since the beginning of the year had
restrained sales of gold jewellery, which accounts for the bulk of gold
consumption, but gold bullion -- seen as a way of preserving value -- has been
selling like hot cakes.
The country produced 169.28 tons of gold in the first
three quarters of the year, a rise of 12.62 tons on the same period last year,
and raked in 3.9 billion yuan (about US$487 million) in pre-tax profits, up 52
percent on comparable figures from last year.
Cheng predicted the country's
gold output would exceed 240 tons this year, with gold sector profits topping
5.5 billion yuan, a record high.
China now ranks third in the world in terms
of gold consumption, after India and the United States.
Gold consumption
exceeded 300 tons in China last year, 80 percent of which went to the
jewellery-making sector.
Xinhua
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