Gold prices plunge as Chinese demand for precious metals hits record highs
Gold is on track to be the most expensive metal on the market for the first time in years.
And the demand is not just for the metal itself, but for its raw material.
China is expected to produce more than half of all the precious metals mined in the world this year.
“There is so much demand, especially for the precious metal,” said Peter V. Schiff, an analyst at Morgan Stanley.
“This is going to be a tremendous year for precious metal prices.”
China’s economic growth is slowing.
In the past few years, China’s economic boom has brought about record wealth and prosperity.
But with the yuan depreciating against the dollar, investors are now wary of the country’s future.
With China’s economy expected to grow by about 2% in 2018, investors have been worried about the currency’s value.
Gold prices have also dropped in the past week as investors have begun to take more interest in the metals’ metal content, said Schiff.
As gold prices have surged, the price of silver has surged as well.
Silver has gained 10% this year to $2,400 an ounce, according to data compiled by Bloomberg.
The price of gold fell to $1,920 an ounce from $1.738 an ounce in January.
According to Goldman Sachs, China is projected to produce as much as one-fifth of all precious metals in 2018.
Chinese officials have said the country will add more than 200 billion ounces of gold and silver in 2018 compared with the current level of 1.2 billion ounces.
China will likely export more than 80% of its total gold and precious metals supply in 2018 to other countries, according the International Monetary Fund, which said in a recent report that China will export more gold to the U.S. than any other country.
Analysts at Morgan Stephens said China is unlikely to import gold to satisfy the growing demand from the U, S. and Europe, where the metal is used to make jewelry and other jewelry products.
Morgan Stanley said the metals demand for the gold in China is growing because the country has become a major producer of metals such as zinc and copper.
Experts said gold prices could continue to rise if the price drops below $1 an ounce.
If the metal price does not rise, it could have a significant impact on the U; its currency is expected on the verge of a one-day decline of between 0.5% and 0.8% to $13.25 an ounce on Monday. Read more Gold, silver to be $2 trillion, but that’s not how it works.
“You have to take into account that these prices are going to go up, because the demand will continue to grow and the demand for metals is not going to stop,” said Vadim Tikhonov, chief investment officer at Vodafone.
“That’s why the market is moving higher.”
The silver price has been trending lower as investors are looking for alternative assets that will give them greater returns, including gold and other metals.
Some analysts said they would prefer to hold gold and its metal content as investment assets rather than buying gold.
“I don’t think gold and metals are worth investing in,” said Jeffrey W. Pritzker, a billionaire who owns more than $1 trillion in the U