Spread Betting News: The Chinese Gold DemandBy City Index, PRNE
Wednesday, June 29, 2011
LONDON, June 30, 2011 -
The World Gold Council recently released a new report, which saw
China overtake India as the largest purchaser of gold in the world.
Spread betting and CFD trading provider City Index ( href="www.cityindex.co.uk/">www.cityindex.co.uk/)
takes a look at a few possible reasons for the Chinese gold drive,
and what this means for your spread betting strategy.
Gold gifting is a significant part of Chinese culture, having
been associated with good luck and emperor status since ancient
times. Birthdays, weddings and New Year celebrations are all still
occasions upon which gold is typically bestowed or exchanged, and
this tradition contributes to the country’s gold demand.
The World Gold Council believes a rise in the disposable income
of the Chinese middle class also has a part to play in demand. This
increase is likely a result of economic acceleration due to the
reforms taking root in China. In 2005, just 15 million households
in China had an annual income of more than $4300 per annum.
A global year-on-year increase of 11% in Q1 gold consumption is
attributed by the World Gold Council to investment demand. With
persistent high inflation levels in China, investors may view gold
as an effective hedging tool.
About City Index:
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through a City Index trading platform.
As a group, we transact in excess of 1.5 million trades every
month for individuals in over 50 countries worldwide. We provide
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CFDs) and, in the UK, href="www.cityindex.co.uk/spread-betting/">financial spread
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Joshua Raymond, City Index, +44(0)20-7107-7002, joshua.raymond[at]cityindex.co.uk
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