China Gold Market
Even though China is tightening their money supply some, according to the Far East managing director of the World Gold Council, Albert Cheng, it will have little effect on the gold market or gold demand..
The reasoning behind Cheng's assertion is the Chinese market doesn't have investment vehicles like exchange-traded funds, so they aren't a factor in that market.
Consequently, the Chinese market for gold is driven by retail investors and consumers, and the majority of them want to include gold as a part of their investment portfolio in order to maintain their wealth.
For China itself, they've been steadily increasing the amount of gold holding they have in the country, up to 1,054 tons now from the approximate 600 tons they had in 2003.
While they are getting a little more investment savvy and didn't bite at the offer from the IMF to acquire about 191.3 tons of gold, it is suspected they continue to buy behind the scenes.
China Gold Market
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