Fact: China has surpassed India as the largest consumer of gold in the world.

Fact: The last bull market in gold (circa 1980) the Chinese were forbidden from buying gold.

Fact:The Chinese as individual citizens have one of the highest savings rates in the world, and they have a long cultural history of acknowledging gold as money.

Fact: This time around, there are over 1 BILLION Chinese who have disposable income with which to buy gold.

Opinion: This is an EXPLOSIVE situation.

China’s gold demand up 3% in Q4

Feb. 24, 2010 (China Knowledge) – Greater China’s consumer demand for gold rose 3% year on year to 116.3 tons in the fourth quarter of last year, the Shanghai Daily reported.

During the period, purchases of gold bars and gold coins increased 17% year on year while purchases of jewelry were flat.

Demand from the mainland supported demand for gold for both jewelry and investment, the World Gold Council said yesterday, citing figures released by GFMS, a precious metals consultancy.

The council said solid gains from mainland China were partially offset by weaker performance in Hong Kong and Taiwan.

In December, demand for gold jewelry on the mainland picked up strongly as prices fell from a high of more than US$1,200 an ounce, according to the report.

Retail investment demand was also strong throughout 2009 due to rising prices and inflationary pressures.

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