In the 4th quarter of this year China will in be competition with the entire world to consume all the production for the next few years and more.
The Chinese are smart - they will not be waiting for the 4th quarter.
By the 4th quarter of 2009 the full sized lady will have sung. You can count on that.
China to consume 40% of global gold production
2009-06-04 16:00:00
By Karim Rahemtulla
The economic fundamentals for gold are favorable. Production of gold from South Africa, United States, Australia and Canada, has dwindled every year over this past decade.
These countries, which combined to produce two thirds of the global gold through the 1980’s, now produce less than half of the gold mined today. In 2006, South Africa, the world’s largest producer of gold, hit its lowest production level of gold in 84 years.
Meanwhile, physical demand for gold has been going through the roof. Much of the recent explosion in demand can be attributed to retail investors in India, China and other parts of Asia where the appetite for gold as investments is soaring.
India, for example, is experiencing an 80% growth in gold investment following a loosening of trade and market restrictions.
And let’s not forget China.
China, which has the fastest-growing economy in modern history, is undergoing major changes in the way they handle gold.
China, home to 1.3 billion people, private gold ownership has been outlawed for generations. But in 2002, the Shanghai Gold Exchange opened and started free trade in gold for the first time in the nation’s history.
