China’s Gold Demand Continues to Climb
China’s Gold Demand Continues to Climb by Rory – The Daily Coin
Gold has risen 8% in the first half of 2017 and the “gold season” is about to start. It appears China’s populace will be leading the charge of gold acquisitions as summer becomes fall.
I was sent a report from SCMP discussing how Zijin Mining Group’s net profit almost tripled in the first half of 2017 pushing their stocks share price by almost 0.07$ per share. Zhaojin Mining Industry is reporting their net income rose by 56% during the same time period. These are two of the largest gold centric operations in the world.
Zijin Mining Group, one of China’s largest gold operations, with seventeen gold focused mines, has seen the demand for gold rise by approximately 10% year over year. Zijin not only mines gold, silver, zinc, copper and a variety of other metals, they also operate smelting and refining operations. If anyone within the Chinese gold market should have an idea of gold demand it would be Zijin Mining.
By the end of 2016, the Company owns 1347.41 tons of gold, 30.06 million tons of copper, 9.5 million tons of lead/zinc, of molybdenum and of tungsten under complete equity method globally, achieved the largest listed gold company, the second largest mined-copper producer, and the second largest mined-zinc producer in China. Source
According to the tons of gold listed above Zijin would be ranked 7th in gold hoards by national ranking, just behind Russia and ahead of Switzerland. China as a nation only reports 1,842.56 tons of gold. If China were to national this operation, never mind, China already owns all the mining operations in the country being a communist government with a capitalist economy. So, if you were to simply add this volume of gold to the “official” gold hoard of China their national ranking would jump to 3rd, just behind Germany with an “official” hoard of 3,377.94 tons.
Lots of gold movement continues in China. The PBoC may not be officially adding gold to their stack, but this doesn’t seem to be affecting gold flooding into the nation on all fronts.
While the citizens in America, and the West in general, continue to ignore gold the people of China are stacking gold like there’s a finite amount of real money to protect their wealth. The US Mint is reporting one of the worst years ever, and potentially the worst year on record, for minted American Gold Eagles (AGE) creating two, potentially, different opportunities for people to better protect their wealth. The AGE’s could, in a few years, command much higher premiums, due to the low mintage, and the obvious insurance from the ongoing geopolitical, political and economic problems that directly impact the Federal Reserve Note’s purchasing power.