China’s precious metals industry set to grow by 50% this year
China’s biggest precious metals producers are set to increase output by 50%, driven by an expected rise in demand for Chinese-produced goods, a key market for global companies, according to analysts.
China is the world’s largest gold producer and a key buyer of Chinese-made goods.
It accounts for about two-thirds of the world gold market.
Gold demand is expected to surge in 2018 with the growth of China’s domestic economy, which is expected by many to continue to expand for years.
Investors are expecting China’s economic growth to pick up over the next year.
Inflation will remain low, but Chinese investors are increasingly looking for growth in the emerging markets, where they are more exposed to higher yields, according.
Gold prices have soared since mid-2016 as Beijing and other big gold producers sought to boost domestic demand and bolster the value of their assets.
But gold prices fell sharply in early 2018 after an oil price slump and global sanctions that saw many companies pull out of the precious metals market.
But China has seen strong demand for its precious metals in the past year and a half, driven in part by demand from countries including the United States and Australia.
China’s exports have risen by nearly 80% from a year earlier, according a Reuters survey of analysts.
The price of gold rose by 1,500% in the first nine months of this year, while the price of Chinese coins rose by 7% to US$1,600.