Still Expect ‘Healthy’ Demand Out Of China Despite Low Growth Figures – World Gold Council

Despite concerns over low growth figures in China, the World Gold Council remains optimistic on gold demand out of the world’s second-largest economy. Roland Wang, managing director for China at the organization, told Kitco News that he expects demand for the metal to pick up in the first quarter of 2016, as per seasonal trends. ‘We believe that you’ll always have strong demand in Q1…of course, you can’t compare this to the real peak in 2013, but we say that now the demand level is back to normal,’ he said at the London Bullion Market Association (LBMA) conference held this year in Vienna, Austria. He added that despite the concerns market participants have over China’s growth, gold should not suffer. ‘We face a lot of challenges, but in terms of consumption of gold, we still have quite a solid belief that consumers still have a strong belief in gold and they will keep buying,’ he noted. Based on data released Monday, China’s economic growth rate slowed to 6.9% in Q3, the lowest level seen since 2009. However, Wang said it is important to look at the trends taking place in the country, rather than ‘traditional’ channels. ‘I think there is a trend for local consumers to buy high-quality products during overseas trips, and also online sales. You can’t read the figure only on the traditional channels; you have to study these new trends,’ he said. ‘I believe the middle class of China…we will see that there is more middle class coming into the market.’ Kitco News, October 20, 2015.

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