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183976
Tue, 05/24/2011 - 06:42
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https://oananews.org//node/183976
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China overtakes India as world's top gold buyer
By Kim Young-gyo
HONG KONG (Yonhap) - China has eclipsed India as the world's top buyer of gold as investors scurry to increase their holdings of the precious metal on fears over inflation, an industry report showed Tuesday.
The Britain-based World Gold Council said in a report that China purchased 90.9 tons of gold bars and coins in the first quarter of 2011, up 123 percent from 40.7 tons in the same period last year.
India's investors bought 85.6 tons of gold bars and coins in the January-March period this year.
Chinese people's growing interest in gold investment was attributed largely to soaring consumer prices in the country. Many people consider investing in gold as an effective way to fight rising consumer prices.
"Gold demand has been further stimulated with banks actively promoting gold investment products," the council said in the report.
China's consumer prices rose 5.3 percent in April from a year earlier, growing more than 5 percent for the second straight month. The Chinese government has put its top policy priority on reining in runaway inflation.
Meanwhile, gold prices surged to US$50.22 per gram on May 2, the highest since Nov. 9, 2010. However, gold prices have fallen nearly 3.5 percent in May.
Last week billionaire global investor George Soros was reported to have sold almost all of his gold holdings, resulting in market fears that the precious metal's price could fall.
HONG KONG (Yonhap) - China has eclipsed India as the world's top buyer of gold as investors scurry to increase their holdings of the precious metal on fears over inflation, an industry report showed Tuesday.
The Britain-based World Gold Council said in a report that China purchased 90.9 tons of gold bars and coins in the first quarter of 2011, up 123 percent from 40.7 tons in the same period last year.
India's investors bought 85.6 tons of gold bars and coins in the January-March period this year.
Chinese people's growing interest in gold investment was attributed largely to soaring consumer prices in the country. Many people consider investing in gold as an effective way to fight rising consumer prices.
"Gold demand has been further stimulated with banks actively promoting gold investment products," the council said in the report.
China's consumer prices rose 5.3 percent in April from a year earlier, growing more than 5 percent for the second straight month. The Chinese government has put its top policy priority on reining in runaway inflation.
Meanwhile, gold prices surged to US$50.22 per gram on May 2, the highest since Nov. 9, 2010. However, gold prices have fallen nearly 3.5 percent in May.
Last week billionaire global investor George Soros was reported to have sold almost all of his gold holdings, resulting in market fears that the precious metal's price could fall.
