Thursday, March 27th 04:18 PM IST

ETF sell off, where's the Gold going: China

# gold  # China  # Gold ETF  # bars  # coins  

China's gold demand is expected to grow in 2014 with growth across jewellery and investment-bar and coin related demand.

LONDON (Bullion Street): China's voracious appetite for gold in 2013 and continued growth in demand for the yellow metal is being met through inflows from Western vaults as destocking and outlfows from gold exchange traded funds (ETFs).

Barclays in a report pointed out that Chinese buyers prefer to hold physical gold and the flow of gold from the West to the East will likely remain a theme.

China's gold demand is expected to grow in 2014 with growth across jewellery and investment-bar and coin related demand.

Barclays pointed out that overall, the avenues to invest in physical gold remain the most popular in China. The spikes in Chinese gold demand in 2013 can atleast partially be attributed to price sensitive opportunity buying as consumers bought gold- or at least brought forward purchases- when prices fell the most.

"That said, net of this, the overall fundamental trend of growing Chinese demand remains intact and we expect it to continue to grow albeit at a slower pace year-on-year."

Courtesy: BigStockPhoto.com

 

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