Jewellery and gold sellers are having trouble meeting demand as more and more Chinese people buy gold and gold jewellery. This steady increase in the demand for gold may soon make China the world’s top gold consumer, replacing India.
There was a 29% increase in selling jewellery, specifically gold jewellery, as well as other gold items such as gold bars in 2013. This is quite a steep climb and China’s rising wealth may be one of the reasons.
The average income per capita in rural areas has increased by 12.5% and this means that people all over China have a lot more money in their pocket that they are keen to invest in assets such as gold. In fact, China ranks fourth for the country with the greatest number of people who have more than $1 million in investable assets.
But why is gold favoured as the asset of choice for investment?
The top reason is that there is a lack of investment opportunities in China currently, the share market is down and the government is clamping down on the real estate market. Gold is an asset with value that is always on the rise and to sell gold is a quick simple way to cash in on investments should you need money quickly.
Both China and India buy more gold than the United States, Europe and the Middle East combined. To help meet its needs for selling jewellery, China recently authorised gold swaps trading to broaden their gold market.
Gold is always a good solid investment, but having it around your house or on your person in South Africa is not always safe. If you would like to sell gold or jewellery that you no longer want or need, look no further than Liquid Finance.