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India and China to lead gold demand: World Gold Council

Vibs

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Jun 15, 2011
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MUMBAI: Gold, at record-breaking levels as global economic worries mount, will see sustained demand from key markets India and China this year despite high prices, the World Gold Council said on Thursday.

Global demand for the second quarter to June was 919.8 tonnes, down 17 percent year-on-year, from 1,107 tonnes in the same period last year, as the "remarkably" high European investment seen earlier levelled off.

The World Gold Council, an industry body, said demand for gold was still "healthy", particularly for jewellery, despite the decline in demand, which steadied after the heavy investment in the last 12 months in gold exchange traded funds.

The 2011 June-end quarter was the second-highest quarterly value ever at $44.5 billion, the WGC said in a report.

The highest-ever quarterly demand for gold was valued at $44.7 billion in the three months ended last December, the council said.

WGC expects demand for gold to remain strong for the rest of the calendar year, driven by demand from India and China.

The impact of Eurozone and US debt crises, inflationary pressures and buying from global central banks will also boost investment demand for gold, it said.

"The strength of demand in India and China, coupled with an overall drop in recycling activity this quarter, demonstrates that consumers have adjusted to the current price environment," said Marcus Grubb, WGC investment managing director, said in the emailed report.

"In addition, ongoing macro economic uncertainty, the continued sovereign debt crisis and widespread inflationary pressures, will result in gold demand remaining strong," Grubb said.

India and China are battling high inflation, alongside other Asian economies like Vietnam, Indonesia, South Korea and Thailand (VIST).

"High inflation has become a positive driving force for gold (amongst the VIST countries), the report said.

India is the world's biggest importer and consumer of gold. It constituted over a third of global gold demand, while China's share is also expanding rapidly.
India and China to lead gold demand: World Gold Council - The Economic Times
 
Indians love gold jewelry. If they can afford it, sky is the limit. In US, people are just buying gold.
 
world countries are purchasing gold very aggressively they cannot more trust on dollar or on euro
this idea was given by Indian pm to convert currency into gold
 
this is islamic economic system,,,,,,,which was proposed 1400 years back and is now proving itself,,,,,,,,,,,the day will come all the world currency ewhould be in dust bin
 
this is islamic economic system,,,,,,,which was proposed 1400 years back and is now proving itself,,,,,,,,,,,the day will come all the world currency ewhould be in dust bin

Gold has ancient history. Much before islam, throughout history, gold had unofficial monetary function
 
this is islamic economic system,,,,,,,which was proposed 1400 years back and is now proving itself,,,,,,,,,,,the day will come all the world currency ewhould be in dust bin


http://en.wikipedia.org/wiki/Coin#First_coins

Homer used the ox as the base "currency" of goods, for example he valued the bronze armour of Diomedes worth nine oxen, while the golden armour of Glaucus, worth one hundred oxen.[3] As a measure of gold he used the talent, Achilles for example gives half-talent of gold to Antilochus as a prize .[4]

Aristotle states that the first coins were struck by Demodike of Kyme, of Ancient Greece, who had married Midas, king of Pessinus, and had by him a son named Agamemnon [5]

Herodotus states (I, 94) that the Lydians 'were the first to coin in gold and silver'. He means that they first coined in the two precious metals separately[citation needed]. Many people[who?] confuse his statement, as if it refers to coinage in electrum (a naturally occurring alloy of gold and silver).
 

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