China has seen a rising demand for gold. That's according to a recent report from the World Gold Council. Report shows that demand for gold remained resilient last year.
Total demand stood at over 4,200 metric tons for the whole year. On the other hand, consumer demand for gold in China saw a 2 percent rise, totaling over 980 metric tons.
Analysts say that Chinese investors are seeking shelter in the precious yellow metal, due to devaluation pressure on the Yuan and a weak performance by the country's stock market.
Just as China rang in the Year of the Monkey with firecrackers, the price of gold has made a noise and splash of its own. As of Monday, the gold price in Shanghai sat at over 340 Yuan per gram, compared with less than 300 before the new year.
But the price change, has, on the contrary, stimulated consumers' passion for shopping.
"I came to check the gold price before the lunar New Year, and it was way cheaper. I did not expect it to rise again just over the festival period. So I decided to buy right now than later."
"I usually buy gold bars. The largest amount of money I ever invested on gold in one go was over 100 thousand Yuan. Now the gold price is steadily rising, and I believe the trend will continue."
The price of gold on the international market saw a seven percent increase last week, the highest weekly increase since December 2008. And if compared with the beginning of the year, the total rise stands at some 16 percent. Industrial experts say this growth is coming from the sluggish world economy.
"The world economy has been seriously affected by the previous global stock market declines, as well as recent declines in Europe and America. Globally, the negative interest rate of the industry is expected to go down after the recent interest rate increase by the US Federal Reserve.
"Also impacts from crude oil and bond exchange rates have pushed investors to hedge risks, which in turn lifted the price of precious metals, especially gold," said Li Yang, Sales Director of Baoruitong Pawnshop Corp. Ltd..
For Chinese investors, the disappointing performances of the Shanghai and Shenzhen stock markets has contributed to the rush for the precious metal.
"I fear nothing with gold in my hand. I invested in the stock market last year and lost several hundred thousand Yuan already,"
"I'd rather use this money to buy gold. Even if the gold price drops one day, my gold bars are still there."
Market experts expect the gold price will continue to rise, and hit new highs by the end of the year.
