According to the exchange Chairman Xu Luode, that figure could very well climb to 17 million metric tons of gold by the end of 2014.
With China now having supplanted India as the world’s largest gold consumer in 2013, the emerging presence of the Shanghai Gold Exchange will attract even more Asian investors to the gold and precious metals markets. This should result in prices and gold demand being driven higher.
The Singapore gold markets have introduced a kilobar contract to satisfy the growing Asian gold demand. A kilobar contract is a contract for 25 kilograms of gold, designed to service gold investors wanting make larger purchases.
With Asia now accounting for 63% of the world’s gold jewelry demand, the larger size contracts have accommodated that market. They are a sign of strong global demand from buyers of gold coins, bullion and jewelry.
As of this writing, gold continues to hold steady at the $1210 level, firmly hanging on to the gains of the last couple of days. The price of gold rocketed upward after the Swiss gold referendum failed and the Chinese Yuan showed signs of currency devaluation.
With prices basing above the $1200 level, the next days and weeks will show us if we have in fact bottomed out and if the next gold bullion moves will be to $1250 and higher.
Join our newsletter:
Connect with us
Click a link below to add us to your favorite social media channels.