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Frank Holmes From Precy Dumlao, Opalesque Asia:
A combination of rising incomes and a cultural affinity for gold in China, India and other emerging markets are driving demand for gold to record high, said Frank Holmes
CEO and Chief Investment Officer of U.S. Global Investors.
Holmes explained that this phenomenon which he described as the "Love Trade," was in full swing during the first quarter which saw jewelry demand rise by 7% on a year-over-year basis. Jewelry demand from China and India accounted for an estimated 67% of total global demand.
Indeed, the demand for gold in China was so strong during the first quarter it was bigger than the combined total purchase of the Western markets. "If you lump together the gold demand of the U.S., France, Germany, Italy, Switzerland, the U.K. and other European countries, the sum of these countries is still outpaced by China. That’s despite triple-digit increases in demand from France, Germany and Switzerland," Holmes said.
Across the globe, investors’ appetite for the yellow metal increased significantly and was up 26% from a year ago. The demand for gold bars and coins was up 62% and 42%, respectively. The increase was driven by the need of investors to look for new investment vehicles and ways to hedge against inflation.
According to the data released by World Gold Council, the demand for gold demand expanded 11 %to 981.3 tons during the first quarter of ...................... To view our full article Click here
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