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China gold output up by 6pct in 2011

Steel News - Published on Sun, 05 Feb 2012

Interfax-China reported that China\'s gold bullion output grew by 5.89% in 2011 to reach a record high of 360.96 tonnes up by 20.08 tonnes from the previous year making the country the world\'s largest producer for the fifth year running.

The China Gold Association said that South Africa, the world\'s largest gold producer from 1896 to 2006, has seen output dwindle in recent years. It reported total production of 192 tonnes in 2010.

China\'s top five production regions Shandong, Henan, Jiangxi and Fujian provinces along with the Inner Mongolia Autonomous Region accounted for 59.9 percent of national output.

The country\'s top 10 producers which include China National Gold Group, Zijin Mining Group, Shandong Gold Group and Shandong Zhaojin Mining Company Limited took 50.98% share of total output with a combined 184.02 tonnes.

The domestic gold market meanwhile saw a marked increase in activity. The Shanghai Gold Exchange, China\'s sole precious metals spot trading platform, reported transactions worth CNY 2.48 trillion while trading volumes grew 23.03% to 7,438.46 tonnes. Gold trades on the Shanghai Futures Exchange surged 178.68% to CNY 5.1 trillion.

Ongoing uncertainties in the global economy helped the price of the yellow metal hit a historic high of USD 1,920.38 per ounce on September 6th 2012. The spot price appreciated 10.1% though the year to end at USD 1,565.02 per ounce and averaged USD 1,571.68 per ounce during the period up 28.35% from 2010.

Strong interest among retail investors in China helped support prices. This demand, reflected by record gold imports from Hong Kong in recent months, has stimulated buying among commercial banks which are offering an increasing range of gold related products. The sovereign debt crisis also encouraged asset diversification among central banks, further boosting purchases.

Mr Aram Shishmanian CEO of the World Gold Council said that \"Since 2009, central banks have been buyers rather than sellers of gold. Further buying in 2011 will make it a record year for central bank purchases since the end of the gold standard in 1971. We see this trend continuing as central banks continue to diversify their reserves to protect their economies.\"

(Sourced from Interfax-China)

Posted By : admin on Sun, 05 Feb 2012
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