China is Second Largest Gold Consumer

China has become the world’s second largest consumer market of gold after India, with the demand for Gold  increasing 13 percent on average annually.

According to Sun Fengmin, Deputy Director with Gem & Jewelry Trade Association of China, “in spite of severe recession of high-end commodities in global terms, China saw a boom in consumption in the sector. Except for traditional gold and silver, diamond investment demand is emerging in China,” China daily reported.

Statistics from the World Gold Council (WGC) show that gold investments in China reached 120 tons in the first three quarters of 2010.

Gold market booms in China

As gold investments grow in the country, two-thirds of Chinese women regard gold jewelry to be as much an investment as a statement of personal style.

China is growing fast and the economy is going up day by day. Thus the increasing number of rich people in China could easily explain the growing demand of gold. “The speed and quality of China’s economic development, as well as people’s income standard, all push forward the continuous growth of high-end commodities as a strong trend,” according to the report.

The significance of gold makes the golden color a very important part of the Chinese culture. Gold as well as the golden color have always been considered to be a symbol of lavishness and richness in the Chinese culture; and was most associated with  emperors who used gold and the golden color.

In the Chinese culture, people with high status tend to use more gold; and gold items are considered to be a great gift. The golden color as well as gold are considered to be an earthly element and are a representation of wealth in the Chinese Four Pillars of Destiny.

Gold offers more stability and more certainty than the US dollar, the Euro and many other investments and so has become some sort os insurance for those seeking stability, at least in the near term.

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