FROM "THE REST OF CARLINO" January 31, 2010 LETTER FROM SHANGHAI
ALBERTO Forchielli
After surpassed South Africa in 2007 to become the largest producer of gold, in 2009 China has overtaken India in the supremacy of the largest consumer. If the forecast specialists will be confirmed, the demand will exceed 450 tonnes. China mainly buys the gold extracted from their mines. World production is in fact decreasing, while the territories of Beijing continue uninterruptedly to dissect the yellow metal. They do not suffer the high costs of administration to ensure that investments to streamline processes, thanks to the joint venture with foreign companies, are effective. Production in 2009 rose by 15% compared to previous year '.
After surpassed South Africa in 2007 to become the largest producer of gold, in 2009 China has overtaken India in the supremacy of the largest consumer. If the forecast specialists will be confirmed, the demand will exceed 450 tonnes. China mainly buys the gold extracted from their mines. World production is in fact decreasing, while the territories of Beijing continue uninterruptedly to dissect the yellow metal. They do not suffer the high costs of administration to ensure that investments to streamline processes, thanks to the joint venture with foreign companies, are effective. Production in 2009 rose by 15% compared to previous year '.
demand is mainly due to hoarding by the Central Bank. Although the component of its total gold reserves is very low (less than 2% compared to a world average of 10%) its value is almost radoppiato since 2003. Significant increase the demand for 'industrial use. New technologies will require an increasing amount for the external protection of space satellites and for the connectivity of microprocessors. Even the personal purchases of gold increased in 2009. At the end of 2009 the gold price was steadily above $ 1,200 an ounce, compared to the 800 beginning of the year. The value of the dollar is falling and the profitability to hold the green currency is increasingly uncertain. Return to 'gold indicates a decline of' traditional investment in the currencies, including the expectations of a revaluation of the renminbi.
Central Banks, the major holders of gold, have reduced the practice of selling since 2005. According to the World Gold Council in 2009, for the first time in 21 years, central banks were net buyers of gold, and China has led the ranking by adding 454 tonnes to its coffers.
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