Gold's traditional role as a safe haven asset in times of economic instability has been considerably enforced during the financial turbulence, and the ongoing economic uncertainty becomes the most effective motivity for the rise of gold prices.
As for China, thanks to encouraging policies established for the gold industry, the gold production in China has enjoyed continuous growth in recent years. By utilizing the capital market, the Chinese gold mining companies accelerate the paces of resources acquisition and integration so as to promote the competitiveness in the international market.
What’s more, the newly-listed gold futures on the SHFE symbolize the start of the construction of the gold forward contract market and the reform of gold investment in China.
However, how to cope with the problems and difficulties never seen before during the process of M&A and how to develop a mature gold investment market together constitute great challenges to the sustainable development of China's gold industry.
Building on high customer recognition accumulated from 2006 to 2008, the 4th Annual China Gold & Precious Metals Summit 2009 is held in Shanghai in December in the context of the rising investment demand for gold and China's growing influence on the global gold and precious metals landscape.
"The premier event will be gathering major players across the sector including producers, refiners, dealers, bankers, investors, brokers, consultants and analysts for the fourth time in Shanghai, the city with the vision to be the international financial hub," said a press statement from the event organizers.
China consumed 395.6 tonnes of gold in 2008 for jewellery and investment, or around 14 percent of global demand, up from 327.8 tonnes in 2007. The investment demand in China nearly tripled in 2008, climbing to 68.9 tonnes from 25.6 tonnes in 2007. In 2009, gold investment demand is likely to zoom in China.
In 2008, China's gold futures trading volume hit 1.49 trillion RMB in less than 12 months.
In 2008, demand for platinum for jewellery use in China was estimated at around 0.76 million ounces, accounting for 68 percent of the global total of 1.12 million ounces. Meanwhile, China's jewellery demand for palladium increased from 15.5 tonnes to 20.2 tonnes.
