China spend 400 tons this year from Gold

A look on Comex market

The Chairman of the China Gold Association is expected to jump China’s consumption of gold, about 50% for up to 400 tonnes this year, surpassing the expectations of the government to produce over 350 tons.

The newspaper quoted Sun as saying at a conference for the mining industry in Tianjin, said gold production in the largest country in the world has extracted is likely to exceed the record level last year and could increase to more than 350 tons from 340.9 tons last year.

China’s consumption was 270.05 tons of gold in 2010.

Said Sun, who also serves as the Director-General of the China National Gold Group that the annual production may exceed 400 tons and domestic consumption may exceed 700 tons in a few years.

He said that Chinese demand for investment products such as gold bullion is expected to rise to about lesbian for up to 270 tons in 2011 compared with 141.9 tonnes in 2010.

The demand for gold in China’s exceptional growth in recent years with the growing appeal as a safe haven in the light of the strong rally of oil prices. And strengthen the demand for the metal is also due to strict government crackdown on real estate speculation that has been a favorite investment rich China.

Jumped China’s imports of gold from Hong Kong 30% on a monthly basis in September for up to 57 tonnes, which shows the continued demand in the second-largest consumer of the precious metal in the world despite a drop in the market.

The country produced 226.39 tons of gold in the first eight months of the year, which means in the case of the continuation of the same average monthly production of 340 tons per year.