The billions of increasingly affluent gold investors in Asia are the linchpin of the global world demand and pricing for the precious metal gold. Pricing in economics is always the intersection of supply and demand curves. In this case the demand curve has been pushed way up. Currently China and not the previous heavyweight Japan is the most important determinant in this trendline. In 2006 China gold consumption alone rose by 17.45 %. Although China’s indigenous gold production has currently expanded and grown up 26.55 % to 21 tonnes in Feb for example demand is still nowhere to be satisfied. This increased supply in China of gold production is a direct result of the increased local demand and pricing for the precious metal and metal. Projected Chinese demand is said to be 460 tonnes in 2008. At that rate at least 100 - 175 tonnes will have to be imported from abroad. The Shanghai Stock Exchange Composite Index is up greatly this year , as well as even greater projections in 2008. Hence rising wealth and prosperity among Asian Chinese investors can lead to even much tighter gold supplies , greater demand with the same supply and hence much higher gold prices and gold pricing trend lines in the currency exchange as well as precious metal markets.
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